China's Capital Market Development On Economic Growth

The relation between financial development and economic growth has been studied by the Western scholars long ago. The research by the foreign scholars has begun from the 70s of last century, from the traditional financial function theory, the financial deepening theory to the systematic financial development theory. But the specific study on the relation between the capital market and the economic growth is limited, the systematic discourse is from the 90s of the 20~th century.The capital market as the important part of the modern financial system contributed a lot to the Chinese economic growth. As the market's expanding scale, the perfecting system and the innovated management, it also increased the risk and complexity in its development. How to regulate and develop the capital market so as to make its contribution to the economy and to decrease the uncertainty and risk in its development becomes the key research point in the economic field.The dissertation's main research is on the capital market's promotion function to the economic growth during the process of the Chinese economic growth. The functions include the following points: risk decentralization, corporate governance, capital form, property right orientation, innovation promotion. The dissertation offers a detailed research on the capital market's transmission mechanism on the economic growth: demand mechanism, supply mechanism, open mechanism, policy mechanism. It also use the demonstration method to study the correlation between the capital market' development and the economic growth. Through the analysis on the development and function of the capital market, it offers a complete picture of the capital market's orientation in the whole economy. Meanwhile, through the analysis on the problem appearing on the capital market and the conclusion of the model, it tries to find the potential causes behind the problem of the Chinese capital market' development.