Research On The Financing Efficiency Of Chinese Stock Market

Since the establishment of the Shanghai stock exchange and Shenzhen stock exchange in the early 90 s of last century,the stock market of China has existed 25 years.It has not only achieved a breakthrough from scratch,but also improved constantly and finished in Europe and the United States and other developed countries in the past 200 years of development.Currently,if we see the market from the market value of the total market capitalization and other indicators,the Shanghai stock exchange has become the world's second largest stock exchange after the New York stock exchange.However,in the process of its development,China's stock market has accumulated a lot of problems,causing widespread concern in the community.Among them,the low efficiency of the stock market financing is particularly prominent.The most important problems lie in tow aspects: 1)the macro financing efficiency of stock market is low;2)the cooperative financing efficiency of stock market is weak.Based on the background of the loss of the function of Chinese stock market,the financing efficiency of Chinese stock market can be substituted by the proportion of direct financing which is calculated by incremental method.Not only does the proportion reflect the financing function of the stock market,but also analyze the financing efficiency of the securities market.It is the method that breaks the previous analysis paradigm of the financing function and efficiency of the Chinese stock market.In this study,we find that the financing efficiency of Chinese stock market is still in a low level during the observation period,and the level of social financing which is needed to be satisfied is less than 20%.The reason is that the pricing efficiency of Chinese stock market is low and does not reach semi strong-form efficient.As a result,the resources allocation ability and the function of financing of Chinese stock market are poor,which limited the increase of the financing efficiency.Under the background of China's high-speed growth of economy is changing,our government begin to pay attention to the effect of the direct financing of stock market to economic growth.Based on two sector model and financial endogenous growth theory,we use the month data of the direct financing of stock market and economic growth from 2002~2015 to analyze the dynamic relation between stock market direct financing and economic growth.The results show that,during the observation period,the direct financing of stock market and economic growth have a dynamic relation already,a significant inverted "U" shaped relationship.Under the condition of maintain moderate inflation,it is conducive to promoting economic growth by increasing the proportion of stock market direct financing through the implementation of loose monetary policy.