The Research On The Difference In Regional Effect Of Security Market Development

Security market, as a roll booster of planned economy to market economy in our country, has made a great contribution for the Chinese adjustment of the industry structure through resources allocation of capital market.After more than 20 years of development, security market has made a rapid progress and achieved a certain size though there are still many defects in stock issuing mechanism and market mechanism, it plays a more and more important role in the marketization progress of china’s economy.From oversea articles we cannot get a consensus whether a mature stock market could accelerate their economy. As the same, whether stock market of our country, which is an emerging market and it is different between regions, has positive effect is doubted too. According to these arguments, this paper will make a research on "whether security market impact on economy and the influences are different between regions", aiming to investigates the influence degree of security market and reveal security market affect regions’economy differently and periodic.This article takes Shandong province as the research object, we choose the data from 2004 to2014 of 14 cities which have listed companies then set a panel model to investigate the regional differences of security market’s influences on economy. The estimation results indicate that there is no obviously positive correlation between economy and stock market capitalization, but transaction rate and economic growth is positively related, stock market liquidity has obviously negative effects on economy. In addition, we find security market affect regions’economy differently. What’s more, the correlation of economy and stock market capitalization is turned every year, and it turns to be negative in 2014. Except that, in these 14 cities of Shandong province, there are positive correlation between economy and stock market capitalization of 9 cities, such as Jinan and Qingdao. But, it becomes negative to other 5 cities, such as Dongying and Rizhao.Beyond that, in this paper, we use method of Grey modeling to prove that development of regional economy、maturity of stock market、financial development、 marketization、economic structure and quality of listed companies are causes of security market’s different impact on different regions. Among them, maturity of stock market and quality of listed companies are the most important two factors.Based on current economic development and the analysis, combing the economic development strategy of Shandong province, each city takes their own economic advantages as a basis to increase regional cooperation capacity、cultivate the new economic growth point、improve the level of economy, optimize economic structure and upgrades and transformation. At the same time, the scale of stock market shouldn’t be the unique criterial for stock market development, the perfect degree of trading mechanism, timeliness and integrity of information disclosure, improvement of supervision strength, all of them should be consistent with stock market development. At the last, improving the quality of listed company is necessary to promote the economic effect of stock market.