The Study On The Development Of Multi-Level Capital Market In Guangxi

After the 3rd Plenary Session of 18th CPC Central Committee, China ushered in a new course to comprehensively deepen reform and promote the opening up. Guangxi, a coastal area along the Xijiang River (the upstream of the Pearl River) and the border, boasts the important and obvious geographical advantage. Therefore, the Chinese government entrusts Guangxi critical missions to make it an upgraded bridgehead of the Sino-ASEAN Free Trade Zone, serve as a strategic fulcrum to connect with southwest and central south of China, develop an important ASEAN-oriented pole of the maritime Silk Road Economic Zone. It undoubtedly requires Guangxi’s another great economic development which in turn requires a compatible financial system. It is promptly the strategic purpose of the Close-Border comprehensively Financial Reform in Yunnan and Guangxi. Given the fact the capital market is the basis of modern financial system, the author conducted research on the history and current status of the capital market in Guangxi and put forward ideas and specific measures to develop the multi-level capital market in Guangxi under new circumstances.Firstly, the paper defined what is multi-level capital market, based on which it reviewed relevant theoretical foundations at home and abroad. Secondly, it conducted a descriptive analysis on the current status and major issues of the multi-level capital market in Guangxi. Then it conducted an empirical study based on the econometric model built with the data from the direct and indirect financing in Guangxi capital market and the GDP data in Guangxi during 2000 to 2013. The study showed that both the direct financing and indirect financing in Guangxi has significant positive correlation with the GDP, and direct financing is much less resilient than indirect financing. It can be inferred that development of the multi-level capital market in Guangxi is far from mature, leaving much room for improvement. Tirdly, it combined the theoretical foundation and the actual status to analyze the feasibility and necessity of developing the multi-level capital market in Guangxi. It concluded that the building of regional stock exchange center should be the anchor point of the multi-level capital market development in Guangxi. Efforts should be made at the same time to prefect the function of regional stock exchange market and facilitate listing of the companies in Guangxi on the Three New Board. Forthly, it elaborated the lessons that Guangxi could learn from the multi-level capital markets in overseas countries and regions and the regional stock exchange center in other regions in China. Finally, based on the theoretical analysis and learnt lessons, it put forward ideas and specific measures to develop the multi-level capital market in Guangxi.