China's Securities Market Financial Information Services Industry Development Research

One of the most important achievements stemmed from the Reform and Opening Policy of China is the quick development of Chinese security markets. But the problem of asymmetric information parasitic to the market has also brought a series of hazards, such as financial fraud, price manipulating and inside information trading. This paper begins with the review of the history of Chinese security markets. After that it studies the mechanism of the transmitting of the information in the market. The three main subjects in the mechanism, stock analysts, financial media and internet information platform, play an important role but still show many problems. The improvement of their will do a lot of good to the problem of asymmetric information. In the end, the writer delivers some possible solutions to the puzzles.There are four sections in this paper. Section One is introduction. This part mainly introduces the research background and the framework of this paper, including the literature survey and the main views of this paper. Section Two introduces the mechanism and the principals of the transmitting of financial information in the security market. Game theory is used to explain the motives of the subjects. Section Three mainly study the problems of the three subjects in the process of information transmitting, including the non-independence of security analysts and the intensive competition among the internet platforms. Section Four is the final part; it comes to the conclusion, and gives some revelation and advice of how to improve market efficiency.The problem of asymmetric information is a long-lasting one. The key to the problem is to boost the development of the industry of financial information services. In the future, the change of Chinese investor structure will accelerate. We have to make right steps to solve the problems of security market inefficiency.