Nanjing National Government Securities Market Development Process

Institutional Innovation is the key to understanding the human history, because itdecided the evolution manner of human history. So, this article mainly in theinstitutional change theory of new institutional economic history, analysis thedevelopment process of the China securities industry history during Nanjing NationalGovernment. Because a large numbers of related literature analysis shows: China’ssecurities market development in the late modern, government play a key role,government-led institutional change is to guide the development process of thesecurities market at the time. Therefore, this paper select1927–1949Nanjing NationalGovernment Shanghai securities development process, compliance with the use ofinstitutional change theory to analyze the path of historical evolution of modern China’ssecurities market, seeks to clear the system of government supplied to the securitiesindustry development has brought what impact and how to shape the securities industryduring this period the process of institutional change, in order to offer little experiencefor developing our current securities industry.The securities industry development of this period is mainly divided into threechronological parts, namely Nanjing National Government early, mid and late, werespectively analysis it from the perspective of institutional change introduces thedevelopment of the securities industry and the government’s system supply process. Asthe changes in domestic and international environments, modern Chinese securitiesindustry in the three stages of development varies have their own characteristics. First,the pre-Nanjing National Government securities, this section introduces the statisteconomic thinking in this ideology, the administration of the stock market systemsupply point of departure is the resource plundering, so as to make up for the deficitdebt securities market, resulting in inefficiency of property rights. Secondly, the midNanjing National Government securities market is more complicated: it divided intotwo periods-the absence of government and the puppet government. In case of theabsence of government, Shanghai’s foreign stock exchange booms, fanatical speculation,a lot of foreign capital flows to the socio-economic development has broughttremendous negative impact, this time instead of the government to proceed with civilsociety organizations Institutional Change. In case of the Puppet government, trading offoreign stocks is prohibited, as laissez-faire approach taken by the authorities, Chinese stock becomes the securities trading protagonist, the prevalence of speculation.Thereafter, in order to change the chaos speculation and trading, the puppet governmentprovides a series of mandatory system, with little success. Again, Nanjing nationalgovernment post, Nanjing National Government to restore the unity of the securitiesmarkets and securities trading, however, the authorities not change his mind bycontrolling the stock market for the government to collect money for active traders,introduced the "delayed delivery" approach, but did not develop appropriate effectiveregulatory measures, resulting in futures trading as gambling on knocking, sunsetgovernment control of the stock market is clearly insufficient.Nanjing National Government securities market development of the twists andturns twenty years, under the guidance of the government has experienced a number ofinstitutional change, which in the absence of the government and the puppetgovernment’s laissez-faire period of the development of the best, but the market orderalso the most confusing. This shows that the stock market is inseparable from the supplysystem of the country, but the state system is undoubtedly the main factors of affectingthe supply of securities market development direction. Throughout this period thedevelopment of the securities market in Nanjing National Government, we found themandatory system supply essentially shaped the modern Chinese securities industryprocess of institutional change, and in this process of institutional change in the modernsecurities industry meager contribution to the development of Chinese industry showssupply system of government is inefficient. History is actually a set of dynamic systemchange process. It is objective and overall from an institutional perspective to examinethe history. Therefore, the use of the system economic theory to analyze the path ofhistorical evolution of modern China’s securities market is very realistic. Since reformand opening of China’s economic situation has undergone enormous changes, at present,China is in a critical stage of economic transformation, in order to further improve thesocialist market economy must be established securities market in order to secure socialcapital transfers surplus and deficiency. Properly handle the government’s role in thestock market is to ensure that the securities market smooth development. Rationalanalysis of modern Chinese government acts in the role of the securities market can bedeveloped for today’s macro-control to provide us some reference.