Research On The Fictitious Economic Development In China

The fictitious economy is one kind of economic activity pattern which corresponds with the real economy,and also is the activity related to the fictitious capital movement.The carrier of the fictitious economic movement is the fictitious capital.The earliest forms of the fictitious capital mainly are the stock,the national bond,the bank note,the real estate mortgage list and so on.Along with the fictitious economy developing and the finance deepening day by day , the fictitious capital also has more and more rich manifestation.Such as various high-level financial deriatives including the combination negotiable securities,the futures,the options,the index futures and the index options.The most major characteristic of these high-level fictitious capitals is high hypothesized.Namely,they are more and more far separated from the initial real property to carry on the independent movement.The production and movement of the fictitious capital have caused the production and movement of fictitious economy.The movement of fictitious economy is one kind of abstract and hypothesized performance of the realistic real economic movement.From a global perspective,at present the scale of fictitious economy greatly has surpassed the real economy.But looked from our country's situation that,with overseas compared,the fictitious economic development also has very lager disparity:Compares with the request of real economic development,the fictitious economic scale also is by far insufficient.This has already become a bottleneck which restricts the real economy to grow.Because of this,the fictitious economic problem has become a prominent question in the economical domain in our country at present.The fictitious economy and the real economy are both oppose mutually,and relate closely.The fictitious economy is on the basis of real economy,and it produces along with the real economic development and develops.Its production,the degree of development and the movement condition all are decided in the real economy.At the same time,the fictitious economy also has the huge reaction to the real economy.It displays in two aspects both positive and negative.The positive role displays in:The production of fictitious economy reduces the transaction expense ; The fictitious economy is advantageous to the real economic capital formation;The fictitious economic development is beneficial to enterprise's system innovation;The fictitious economic development is favorable to promote and adjust the real economic industrial structure;The fictitious economy also is advantageous to optimize enterprise's resources disposition.The negative effect mainly displays in two aspects : The over-expanded fictitious economy can create the bubble economy.Otherwise,the obvious lag of fictitious economy can cause the financial suppression.We should guide the fictitious economic positive effect fully on the real economic development,and restrict the negative effect which the fictitious economy brings.This can promote the real economic life to develop unceasingly to the higher stage.The bubble economy refers to the rapid price inflation of the long-term property including the stock,the real estate and so on which the over-expanded fictitious economy brings about.It is the phenomenon that the entire economy is to be false prosperity.The bubble economy is not equal to the economic froth.The economic froth refers to the imbalanced phenomenon which appears in the process of economic development . Its concrete manifestation is the economic cycle which fluctuates for about.The factors which cause the bubble economy may be summarized for the following points:1. The institutional factor which creates the bubble economy is the wrong monetary policy and financial supervising.2.The credit funds of the banking institution are over-expanded.The quality of the financial property is excessively low.There is massive bad debt in financial area.3. The excessively open financial market causes the fictitious economy over-expanded and initiates the bubble economy in developing countries.4. The existence of massive international floating capital also is the important factor which brings out the bubble economy. The new institutional economics believed,a series of rules of the institution are made up of the unofficial restraint which approved by the society , the official restraint which stipulated by the country and the implementation mechanism.According to this theory,the questions which exist in the fictitious economic development in China mainly as followed:1. There are many institutional flaws including the structural flaw,the system flaw and the functional flaw in the stock market in our country.2. The institutional questions which exist in bond market in our country:The phenomenon of artificial division is to be serious in the circulate bond market;The issue of bonds is affected by the administrative departments;The scale of bond market is small and the fluidity being low;The structure of bond market is unreasonable;The opening is restricted in the bond market.3. The credit system is not perfect in the stock market in our country.4. The supervising system of the capital market must be further consummated in China.We may use a simple model to explain the institutional flaws of the stock market in China.The stock market produced in the crevice between the old institution and the new institution in China.Under the different institution,the behaviors of the economic subjects are different."seeking rent"cannot appear in both the"smallest government"in pure market economy and the"biggest government"in purely planned economy.Under the coexisting both the old institution and the new institution,the government intervening the market can bring the"policy rent".So the institutional flaws of stock market are formed.In order to solve the questions which exist in the fictitious economic development in China,we suggest taking the following measures:Firstly,we must limit the property right structure of the fictitious economic subjects clearly and optimize the internal structure of the fictitious economy ;Secondly,we must improve the investors'structure in stock market and cultivate the organization investors;Thirdly,we must be strict in the market standard system and eliminate the quality danger hidden in the listed companies;Fourthly,we must consummate the legal framework of negotiable securities market and guarantee that the supervising system of the capital market is institutional.Fifthly,we must strengthen the financial supervising system and guard against and melt the financial risk.