The Split Share Structure Reform And The Circulation Of China's Securities Market

The main objectives of this article are to analyze the reasons and the structual disadvantages of Guquanfenzhi on China securities market, and to analyze and estimate the effect of complete liquidity on China securities market.Based on the available data of China securities market from the beginning of market to the present , this dissertation provides positive demonstration by using various theories put forward by domestic and foreign scholars. It turns out that Guquanfenzhi is caused by some impersonal matters in history. Guquanfenzhi lead up to the conflicts of the circulative shares and the uncirculative shares and then it ultimately destroy the market functions. Before china government actualize the reformation of Guquanfenzhi in year 2005, it had been the biggest systematic disfigurement of China securities market.After an in-depth study, this dissertation discovered that, by the reformation of Guquanfenzhi based an concept of Duijia, china is creating a market of complete liquidity. A market of complete liquidity will change the interest connection between the circulative shares and the uncirculative shares, and then, change their behavior modes. Guquanfenzhi will cause market functions to come back, and will increase the efficiency of China securities market. Finally, a market of complete liquidity will lead to a more healthy and more perennial economic development of China.After researching the matters of Guquanfenzhi, this dissertation find some other points. there still are some problems in China securities market, that will exist even after reformation of Guquanfenzhi. Those problems requiring further studies.