Under The Financial Crisis Of The Real Economy And Virtual Economy Development Research Of China And The United States

Based on the background of economic globalization, the information technology revolution, financial deepening and the reform of financial liberalization, the fictitious economy is growing rapidly with more diverse forms and larger scale, and its status in the social economy can not be ignored gradually. The U.S. subprime mortgage crisis breaking out in March 2007 spreaded rapidly and evolved into a global financial crisis, nearly all the developing countries or regions have been impacted. Due to the subprime mortgage crisis, many American financial investment companies went bankrupt and closed down, the stock market suffered a serious setback, America’s real economy was influenced and the crisis of lack of liquidity happened in worldwide major financial markets. The subprime loan was essentially over securitization of non-performing assets, it was a form of fictitious capital. The sub-prime crisis could also be called the fictitious economy crisis, which was the outcome of increasing integration and over securitization of world’s credit markets and capital markets, and also the consequences of over development of fictitious economy, breaking away from the real economy.For China,30-year reform and opening up has made the Chinese economy more and more important in the world economy, and China’s share in the international financial capital also has increased significantly, particularly the securities market, which has already became one of Asia’s most important markets within only 20 years. Therefore, according to my working experience in the securities sector for several years, I planed to make relevant analysis and research of the development relationship between the U.S.-CHINA real and fictitious economy in the current world financial crisis environment, trying to provide useful ideas and suggestions for improvement of China’s market economy system.Fictitious economy is a relatively new field of study. This article firstly introduced the origin and development of real economy and the fictitious economy, analyzing the background of the global economy virtualization and its mechanism. Secondly, it adopted a statistical method to describe the supporting role of real economy to the fictitious economy, the promotion and negative effects of fictitious economy for the real economy. Empirical studies suggested that the Chinese stock market was very unstable, and the development of the real economy was steadily rising each year, there was no Granger causality between GDP and stock trading volume, which meant there was no obvious close interaction between GDP and stock trading volume. On the other side, there were no obvious relations between four indicators of the Chinese stock market and its GDP’s increase, and the fictitious economy and real economy were incompatible. Meanwhile, there was close relations between the U.S stock and bond’s market value and the GDP and real assets, the development of the U.S. fictitious economy and real economy was synchronized. Finally, according to the analysis of impact of the financial crisis on Sino-US economic development, it demonstrated the key reason of 2007 world financial crisis was over expansion of the U.S. fictitious economy and then gave recommendations for the coordinated development of fictitious economy and real economy.