Some Thoughts On Improving The Operating Efficiency Of China's Securities Market

The running efficiency is an important indicator for measuring the maturity of securities markets as well as the requisite of fulfilling the functions of securities markets. After many years' development, our country's securities market has made much progress in many aspects. We have formed the market structure in terms of the national securities exchange system(Shanghai and Shenzhen Stock Exchanges) and the counter exchange markets. There had been 1,088 listed companies by the year of 2000 with the total market value 4.8 trillion yuan. The TMV∕GDP ratio also exceeds 50%. What is more, in some aspect, for example, our trading techniques have reached the corresponding level of developed countries' securities markets. But we must realize that our securities market is at the early stage of its development and compared to west developed countries' securities markets, ours has still been of no efficiency or at low efficiency. So, the running efficiency of securities markets has come to be the important factor of developing and perfecting our securities market. Because of this, I choose this subject for my thesis.There are many factors that will influence the running efficiency of securities markets and we can't investigate all of them in one dissertation, so this article mainly studies four of all those factors-the structure, the fluidity, the system of information release and the supervision of securities markets, as well as the analyses of the above four aspects and advice for improvement.With these considerations, this article is divided into three parts(three chapters) the first of which analyses the three correlative conceptions, namely, the efficiency, the market efficiency and the securities market efficiency. The significations of the three conceptions and the connections and differences between them are explained. From the relations between them, simply saying, the securities market efficiency is subordinate to the market efficiency and the market efficiency subordinate to the efficiency. Then, I list some previous theories on this subject and give my opinions about these theories' experiential testing in China and I come to the conclusion that we should carry out research on the running efficiency of our securities market through its practical running process. The second chapter gives analyses of our country's present conditions in the structure, the fluidity, the system of information release and the supervision. In the matter of structure I use three hierarchies to discuss the problem, that is, the hierarchical structure, the security structure and the investor structure of the market. In the final chapter, I give my countermeasures to the problems in the four aspects.From the structure of this article we can see that apart from the first chapter there are four parts corresponding respectively to the four problems I've mentioned-the structure, the fluidity, the system of information release and the supervision. There are some connections between the four problems, but at the same time, every problem involves in the running efficiency in some point of view. First of all, from the view of the structure, there are mainly three problems existing in our securities market. (1)Oneness in the hierarchical structure. Though there exists the market structure formed by the national securities exchange system and the counter exchange markets, it still can't suit the needs of multilayered variant economic development, so it still hinders the all-sided and coordinated growth of our economy and also hinders the market from arranging the resources. (2)There is not only a problem of fewer security facilities, but the worse still is that the division of the kinds of securities is not quite reasonable. (3)For a long term there has been the unreasonable or juvenile status in the matter of investor structure because there are too many individual investors and the organizational investors are very rare. We can take three measures to solve the three problems, that is, to establish our second board market, to cir...