Research On The Appropriateness Of Government Intervention In The Stock Market

The securities market is an important part of the capital market,it also is a product of helping the market to ease the pressure of capital supply and demand contradiction and lack of liquidity at a historic moment,and it plays a very important role on economic regulation and operation.Specially,the stock market as a part of the securities market,its' adjustment and the influence of the market cannot be despised.The stock market brings some contribution for the economic development and stability with its'financing function and the asset appraisal function.In addition,because of the high risk of the stock market,it also has the function to adjusting itself,so that it can protect the investors and their funds,and help the market smooth running.But the stock market of China was started too late,it's system is not very mature in develope,so it needs the help of the government's macro-control power tokeep the stock market order.There is a lot of controversy in the society about whether the government should intervene the market.But in the practice,no matter in developed countries or developing countries.governments were always choosing to intervene.So it is sure that intervention from government is an important and necessary method to deal with the stock market crisis.And a problem of the extent of the appropriate following then.This paper first introduces the American subprime crisis in 2008,then analyzing its'reason and measures.Then choose China's stock market crisis in 2015 as a breakthrough point to analyze the appropriateness of government intervention in China.This paper will be divided into five chapters besides the introduction and the conclusion:The first chapter as a quote of the paper,mainly introduce the basic concept of government intervention,including legal connotation,goals and characteristics of government intervention.The second chapter use American subprime crisis in 2008 as an example for discussing oversea government intervention.Throughing describe the background of the American subprime crisis and the methods of how to deal with the crisis,summarize the beneficial enlightenment for Chinese stock market development.The third chapter first describe the Chinese stock market crisis in 2015,and then analyze the necessity of government intervention,the suitability of the performance,and the steps of suitability building.The fourth chapter mainly discuss how to build the appropriating standardize of the government intervention,and mainly discuss from inside and outside two aspects.The fifth chapter makes a conclusion that when the stock market crisis happens,government intervention is necessary and should keep appropriateness.Exploring the suitability problem of government intervention has a meaning both in theoretical aspect and practical aspect.Therefore,establishing a standard of government intervention is very important.