Study Of The Relationship Between China's Banks, Stock Markets And Economic Growth

One of the problems concerned by the financial development is the cause-effect between finance and economic growth.Is it the bank or the stock market which is better for the economic growth? Chinese financial reform pays more attention to the development of stock market in order to introduce the developed stock market into our economy to resolve the existing problem in it.However,this is the case that the finance through bank lending is the main channel for the enterprise financing.Therefore,it is necessary to compare the bank with stock market for the role in the economic growth,to know even which one is better than the other.It has the important theoretic and real meaning for the harmonization between bank and stock market,the optimization of financial structure and the reform of financial system to prompt the economic growth.Based on the theory of financial intermediation,this paper analyses the cause of why the financial intermediation exists,the difference between the bank and stock market in the risk management,liquidity difference and corporate governance,the role of financial intermediation in the economic growth.Moreover,it also analyses the role of the bank and stock market in the economic growth.The main content and conclusions are as follows:In Chapter 1,this paper makes the introduction on the surroundings and the meaning,the basic conception,particularly the financial intermediation and financial market,the research content and technique,the innovation and the future research, and so on.In Chapter 2,this paper summarizes the connection the development of the theory of financial intermediation.It mainly analyses the evolution of the theory of financial intermediation,the connection of bank and stock market,and the role of theirs in the economic growth,which lay the theoretic foundation for this study.In Chapter 3,it considers the relationship between the bank,stock market and the economic growth with the empirical data.In Chapter 4,it makes the main conclusion and the policy suggestion.Through the empirical study,it draws the conclusion:China's economic growth relies on the bank lending;although the development of stock market has the positive effect on the growth of GDP,it is not distinct;the bank development makes more contribution to the economic growth than the stock market;the inflation has the negative influence on the growth.For the relationship between the bank and stock market,there is the positive relation between the bank lending and the market value of stock market.There is the negative relation between the residential savings and the market value of stock market.So,we can draw the conclusion that they have the competition and complement relation.Therefore,make the suggestion that the bank finance should be given priority and the stock market should be developed properly.At the same time,increase the effiency to finanacial intermediation by improving the corporate governance,and adding the lending to the non-state enterprises,widening the investment business. Make the stock market standard by perfecting the in-out mechanisms,paying more attention to the supervision and perfecting the governance of listed company.