Comparative Study On Capital Allocation Efficiency Of Stock Market Between China And Britain

Stock market is an important part of the financial market,not only it can raise money for the listed companies to develop,but it can also enrich the form of investment.So the stock market can rich the investors and mobilize idle funds,make the funds used efficiently.Whether the stock market can optimize allocation of resources,the reference point is efficiency of capital allocation,so many scholars start to study it.Under the background of financial globalization,as the two main economic entities,capital and trade contacts between China and Britain become more frequent.In the Seventh China and Britain Economic and Financial Police Conference,the concept of “Shanghai-London Stock Connect” has been proposed for the first time so,the reality meanings of comparative study on capital allocation efficiency of stock market between China and Britain become especially important.Therefore,this paper mainly study the efficiency of capital allocation of Chinese and British stock market,find the difference between them,and give advice to improve efficiency of capital allocation in Chinese stock market.In this paper,firstly,studying the background of this topic,and learn some hot news of economic cooperation between China and Britain,in order to conclude the research significance.Then giving the writing stages,so we can know how to research.Secondly,learn the correlation theory,after reading lots of literature on the basis of the literature summary of research methods,the allocation of capital theory are summarized.Thirdly,analyzing the development process and current situation of China and Britain stock market,by the comparative studying,find the difference between China and Britain.Then using quantitative analysis method examines the relationship between the amount of funding in Chinese and British stock market and economic growth,then according the analysis results to make a comparison.Finally,make a conclusion and give some suggestions to the Chinese stock market.The innovation point of this paper is selecting China and Britain two countries as objects of study,comparison and analysis from the standpoint of nations,many scholars just study the different industries or districts of one nation,so this is a veryimportant innovation.Choosing Britain as the comparative object due to the proposal of “Shanghai-London Stock Connect”,so this paper could provide theoretical foundation for this policy by comparative study between China and Britain stock market,it is very practical valuable.