On China's Stock Market System Defects And The Reform Mode Choice

China's stock market has developed for nearly 10 years by now,and the total market value has achieved 4000 billion Yuan which eqaul to half of GDP. There are more than 1000 listed companies and 40 million investors in the market. Meanwhile,the stock market brings up great fanction to the economic development,such as joint-stock reform,accelerating upgrade of industry structure and financing funds for enterprises etc. In spite of these aspects,some problems can't be ignored. For example,how to improve the quality of the listed companies,how to retain the fair trading environment and how to strengthen rule of law,most of these problems should be solved urgently.Let's talk about the problems. Firstly,the poor quality of most listed companies has been one of the unstable factors of the whole stock market. It is said that the volume of deficit listed companies grew up from 0.68% to 5.7%. At the same time the average achievement fell down;Secondly,it is illogical that the new shares issuance is mastered by the government in stead of by the market;Finally,Some other problems still exit in the course of trading. Here we should pay more attention to the relating trading. In some few listed companies,relating trading is utilized by the supervisor to help them carrying through low-down trading which can make them profit.All of the problems should be deal with in the near future. Now we put our emphasis on how to settle the exiting matters in the stock market. Criterion joint-stock reform Is the radical one,now we choose systematic reform stratagem,and refer to the new-share issuance,it should be decided by the market,so that we can improve operational efficiency. There are still some suggestions on how to mend the whole trading process,such as to enlarge the market scale,to foster excellent-quality shares,to set up forward-looking statement and widen financing channel.According to the present situation,law construction should be expedited for we are facing the fact of joining WTO which can make our economy gain more success,and the economy is in the direction of internationalization. With the development of the market economy,stock market will make more progress in the coming new 2kentry.