China's Monetary Market And Capital Market Connectivity

As the important components of the financial market, monetary market and capital market are two kinds of main allocated mechanism to dispose the social monetary resources. Capital turnover and mobility management of the social economy are all due to their support. The exchanging object of monetary market and capital market is both monetary fund, and it is natural for monetary fund to maximize profit and cash flow. The homogeneity of the exchanging object determines that monetary market and capital market have natural connection. Objective regularity and sound development of economy require monetary market to coordinate and link up , merge and communicate , develop proportionally with the capital market each other, thus realize effective full play of the whole function of the financial system and the sound development of the whole financial market.But, for a long time, China's monetary market and capital market are in a state of isolated from each other. Both the capital flow and their management are under strict segregation state. The pattern of isolation artificially of monetary market and capital market in reality has not only brought such problems to circulation, operating, and benefiting, etc. monetary market and capital market themselves cause the macro- economy and the basic units of economy to burden more aggravate financing cost and higher capital liquidity risk, but also weaken the government regulation and supervision. Therefore, regarding the promotion and coordination of the two markets , we should thoroughly analyze the two markets'basic characteristics, intrinsic balanced relations, docking condition, and explore the division theory and the realistic root of the two markets. These are essential factors for the whole market advancement, helping realizing the effective utility of...