Reason Research On The Relationship Between Chinese Stock Market And Economic Growth

Chinese Stock market, including Shanghai and Shenzhen Stock Exchange, is the world’s second-largest stock market. Since 1991, Chinese real GDP grew eight-fold, but Chinese stock market has a poor performance. Few rigorous academic research to solve this problem, so it is the original intention of this paper. We compared the Chinese market and listed companies with other major developing countries (Brazil, Russia, India and South Africa), and using the United States markets as a benchmark.We tried to explain the reason that Chinese stock market imbalanced with the economic growth. Our answer will help policy makers and regulatory agencies (such as the Commission) propose viable solutions to improve the efficiency and performance of China’s stock market. Since the establishment of the stock market two decades, he did not like the banking industry plays so prominent role in corporate finance and economic growth. But the importance of the stock market has become increasingly prominent. If less investment in the stock market this important market, a lot of capital into other areas such as real estate, can cause many costly economic distortions. One of the main tasks to improve the development of the Chinese stock market and financial system.Empirical Research in this paper is divided into two parts, the empirical test of the IPO effect of the mainboard market exists widely in China, the second part explore the influence factors of IPO effect. The empirical results show that main board listed companies in China are in performance after the IPO is a significant decline phenomenon, but the performance of matching companies have no obvious change. The performance of State-Owned Enterprises decline more prominent than non-state enterprises, the higher the proportion of the first big shareholder holds, the performance declines more.We use the financial data of Chinese listed firms for the period 2000-2014 to do the empirical research, we found that the IPO is the main cause. So we recommend China to achieve registration system reform as soon as possible...