Maturity Of Stock Market And Its Influencing Factors

In modern market economy, financial market activities are lubricants and catalysts fornational economy. Securities market, especially the stock market is the most active part of thefinancial markets. As the market mechanisms of resource allocation, property rights trading,risk dispersion and corporate governance, stock market has an increasingly significantinfluence on the economic growth and other economic variables. The stock market has anindispensable effect on raising funds for enterprises, promoting enterprise techniquereformation and updating, increasing its market-oriented, promoting to restructure the nationaleconomy, promoting the optimal allocation of social resources, deepening financial reformand improving the macro-control methods, etc. With the perfection of "Software CapabilityMaturity Model"(CMM), the concept of "maturity" has been widely applied in many areas.Domestic and international literature on the stock market has also mentioned the maturity ofstock market many times, but mostly studies the characteristics of a stock market factors suchas market efficiency, liquidity and volatility, or study the development of stock market fromthe perspective of efficiency, functionality and the relationship with the real economy, act.And the existing literature has rarely introduced the "maturity" concept and the evaluationmethod to judge the operation status of the stock market. Therefore, how to bring so manyindicators of measuring stock market growth and development into a relatively completetheoretical framework system, which can more systematically, comprehensively andintuitively measure the operation status and development level of the stock market, shouldbecome an important topic of theoretical research.Based on above, it doesn’t only have innovation orientation but also has practicepointing to investigate maturity of stock market, especially for China’s stock market. On onehand, the big contest between that it is often referred and that few documents study it reflectsits academic research value. On the other hand, any stock market policy’s formulation, testand adjustment all should come from the judgment on the development stage of stock market.The paper tries to apply the" maturity" concept to the filed of measuring the developmentlevel of stock market, and bring the maturity of stock market into a comprehensive andsystem analysis framework.The author believes that the stock market should be treated as anorganic life and also has a life cycle. Be different from other living things, the maturity ofstock market is relative and dynamic. The mature market still has space and possibility todevelop to better. After clarifying the connotation and extension of maturity of stock market,the paper defines the influence factors of stock market from both the causes and theperformances, and specifically analyzes the influencing factors from time, scale, macroscopicstructure, formation mechanism of stock price, quality, function efficiency, degree ofinternationalization and quality of listed companies. Then we give a preliminary assessmentof maturity and get a conclusion that the A stock market is still emerging and transitional.Finally, the paper give some suggestions to enhance the maturity of China’s stock market.