Capital Market Development In China's Monetary Policy

The essay describes the present situation and existential problems of our capital market by retrospecting its developing career. Further more, it brings forward the challenge that the monetary policy may meet with the development of our capital market,such as: its effect on the eventually and intervening object of the monetary policy and the efficency of the monetary policy . Then the article discusses the effect mechanism of the monetary policy working on the capital market from the aspect of the scale of our capital market, fluxionation of asset price and credit capital entrancing to capital market, finally, the article also makes some useful measures and suggestions for the capital market and monetary policy: oiling the wheels of the capital market and monetary policy, improving the efficency and the conduction mechanism of the monetary policy, taking the asset price into the destination of the monetary policy, focusing on the bond investment demand for currency supply.With the method jointed with theoretical studies and reality analysis, and based on the research outcome up to the minute, the paper demonstrates the impact which monetary policy is suffered from the developing of our capital market. Extraordinarily, by the search of capital source which supported the cattle market of the year 2000, it analyses that the entrancing of credit capital to capital market has great effect on the monetary policy, which is quite realistic significant, finally, based on such analysis, the paper offers some good ideas for our monetary authorities to deal with the challenge, even more, it also point out the importance to improve the capital market.