The Historical Evolution Of Institutional Change And Efficiency Considerations

This thesis analyzes Modern China Securities Market systematically, expounds the historical evolution of Securities Market clearly and makes the evaluation for Securities Market objectively and scientifically, with the theory of Institution Change—the core theory of the New Institutional Economic History.Firstly, it analyzes the causes of Modern China Securities Market, and the functions of traditional cultures and concepts, with the angle of supply and demand relations in Institution Change Theory. According to this part, my opinion is that, with the fast development of joint-equity enterprises, the original credit system cannot satisfy the increasing fund demands, and thus it is the objective requirement for financing mode of securities. Meanwhile, the Modern China Securities Market is the result of conflict between Chinese traditional culture and western cultural thoughts.Secondly, with investigating the actions of elementary and secondary groups in the development course of securities market institution, it expounds the historical development of China Securities Market during the period of Late Qing Dynasty and Beiyang Government, from the angle of main subjects. According to this part, my opinion is that, before the establishment of Nanjing National Government, the institutional change of China Securities Market is the course which induced by some elementary groups, so it takes on obvious feature of market predominance, and government is just play a role as secondary and subsidiary element.Thirdly, from the angle of government, it analyzes the function of government in Securities Market during the period of Nanjing National Government, with the method of observing purpose and means by which central government intervened securities market. In this part, my opinion is that, it is a course of the positive direction development, and is corresponding with wholesome development aim of securities market, that the central government does intervention and regulation on Modern Securities Market to diminish the shortage of liberal market, with the role of .judge. At the same time, with the role of athlete, the central government takes part in securities market and publishes a great deal of government bonds, without considering the market endurance and resistance, so the result is contrary to wholesome development aim but the negative direction development. Fourthly, from the view of institutional efficiency, it states the investment conditions of native banks and banks, and analyzes the relations between Securities Market and modern industries, then concludes the evaluation to financing function, resource allocation function, and efficiency realization of Securities Market. In this part, my opinion is that, Modern Securities Market does not serve for industries, and industry development also does not rely on securities market. Native banks and banks are the two of the most important investors in Modern China Securities Market, and the conditions of different investing attitudes and different participation levels doom the downfall of native banks and the flourish of banks.Finally, from the angle of market and government, it states the price fluctuation of Modern Securities Market, and thus works out the capital pricing function, inner efficiency and legal supervision of Modern Securities Market. According to this part, my opinion is that, in Modern China Securities Market, it shows the situation of violent price fluctuation, frequent security speculation, no steady expectation of investors, and disorderly market evaluation system. As a result, in this kind of market, the capital pricing function is out of use, and the inner efficiency of securities market is far from sound realization.After discussing the causes and development of Modern Securities Market, the intervention and supervision of government, the market efficiency and investor behaviors, and the efficiency and performance of market fluctuation, it is believed that Modern China Securities Market is typically characterized by institutional portability. It is appeared with demands and efforts of some elementary groups, such as investors. Certainly it is characterized by liberal development with features of induced institutional change. Along with appearance of secondary groups such as governments as well as its deep participation in market, it is the government intervention that becomes main forces for market progress. With the interaction of the two elements of market and government, the course of institutional change of Modern China Securities Market takes on the characteristics of twist, volatility, speculation, finance and unsoundness, so it is the capital market with poor efficiency.