China's Securities Market And Opening Up Economic Growth Effect

Economic globalization has become an irreversible fact, and its essence is the financial globalization. Opening up of China's securities market is gradually increasing, in terms of the market opening has become an important force in promoting economic growth. Out of this understanding, this paper introduces the theoretical foundation of the securities market opened for macroeconomic growth. Then through the data of operation of China's economy and opening up of China's securities market, we study the economic growth effects. Specifically this paper focuses on three issues: firstly, to redefine the meaning of securities market's opening; Secondly, how to depict the level of market's opening; Thirdly, check out if China's securities market opening relates with macroeconomic growth. For the above three issues, after detailed feasibility studies and data analysis, results were as follows: (1) the securities market opening refers to the allocation and trading system of securities assets integration into the world system, including two two-way processes of coming and going aboard for investment and financing (or services). Understanding the concept with geographical should be avoided; (2) the level of securities market opening is the result of game between State and institutions or capital which are coming and going aboard. Considering the fact that there are two occasions, official and actual opening, this paper uses "Securities capital scale flowing in and out in a certain period" to characterize the opening level; (3) the correlation between improvement in the securities market opening level and economic growth is weak. Opening level is not the reason of China's macro-economic growth. With the reasons of China's actual conditions and the pattern of economic development in the world today, in the sample period the entry of foreign investment had not brought expected advanced investment ideas and the opening didn't help improving the mechanism of securities market, opening and growth were not so relevant. China should improve the securities market further, enhance information disclosure mechanism, the securities markets legislation, more strict regulatory efforts.