Analyze Asymmetric Information In Financial Market

The stock market is an important part of financial market, its running status is directly related tothe financial industry healthy development, which plays an important role in the development of the stockmarket normal operation the development of China’s financial industry, and even the whole nationaleconomy, at the same time, this also is the government of our country has been trying to pursue the goal of.However, the information asymmetry phenomenon in China’s stock market has always existed, and itsinfluence is more and more big, become the problem that can not be ignored. Many problems arise stockmarket transactions such as moral hazard, adverse selection, insider trading and information asymmetry infact there have all kinds of connections with the relationship, so the stock market can not rely solely on itsown regulation mechanism to optimize the allocation of resources, play it as the main place of resourceallocation should be.Based on the importance of information on the market trading activities, we pay attention to andstudy of severe asymmetric information problems in our stock market, analyze the reasons to cause this tohappen. The reason of which can be classified as: government, indistinct; internal structure confusion, norules at all; the economic environment is not standardized; government regulation is not in place. Theseproblems are exacerbated by the degree of information asymmetry in Chinese stock market, so we need topropose appropriate countermeasures to improve. As to strengthen the stock market informationdisclosure, to speed up the pace of structural and institutional reform, the listing Corporation to perfect ourcountry’s stock market system, strengthen market supervision and other measures, is the effective schemeis proposed for solving these problems, and then reduce severe information asymmetry phenomena inChinese stock market.In the study of the phenomenon of asymmetric information in the stock market, we put forwardthe most direct and effective approach is market regulation. So, it is necessary to find a suitable way offinancial regulation for our country present situation. That is on the basis of the existing announcementregulation and standard regulation, gradually tend to achieve the more stringent form of entity regulation.I hope this way can promote the improvement of the asymmetry information problem, finally ensure the stable and healthy development of China’s financial markets.