Functional Analysis And Countermeasures Of China's Securities Market

There is not an overall and systematic theory knowing to the function of security market. By analyzing model of Participant of security market, this paper proposed, the function of security market can be divided into three parts: the original function; essential function; the derivative function. The essential function is a major function of security market, which include financing, investing, optimizing resource distribution, pricing, corporate governance.By positive fact analysis, the paper point out the function of security market is inefficient. The original function is weakened; the basic function is lacking and aberrant; the derivative function is losed. What cause the function of security market inefficient? The reason can be analyzed in terms of the following: mistake at functional orientation; stock right separation; plan system; disfigurements of corporate governance; disfigurements of market structure; disfigurements of stock issuing system; disfigurements of information disclosure system.The countermeasure to perfect the function of security of market includes five points. First, solve stock right separation and give all shares free and complete liquidity. Second, reform the system of security market. Third, perfect the structure of security market. Fourth, optimize corporate governance. Fifth, strengthen supervision and perfect information disclosure system.