The Analysis Of Bank System And Stock Market's Economic Growth Effect In China

Among many factors affecting economic growth, financial development is the focus of academics in recent years. Economists have made numerous theoretical insights into the comparative advantages of different financial systems. Now, four competing theories of financial structure have been proposed: a bank-based view, a market-based view, a financial services view, and a law and finance view.Firstly, this thesis starting at economic growth, uses for references to the returns of endogenous growth theory and financial development theory in recent years, and analyzes in detail that bank system and stock market how to exert itself functions to influent economic growth, examples for accumulating savings, sharing risk, allocating information, managing companies and so on. At the same time, this thesis also introduces the theory that the similar functions of bank system and stock market can result in the substitution of the two, and the strategic choices to the different financial contracts can result in the complementation of the two.In terms of academic analysis, I apply the data of economic growth, bank development and stock market development to the empirical study. From the study, we find since 1990, following the deepening of market, the stock market has not played an important role on economic growth, but the banking system has been a source of economic growth. And the relationship between bank and stock market domains the substitution, which shows the development of bank and stock market is due to the substitution, not the collaborative development.From the empirical results, we find that the stock market exsit serious problems in system. We not only carry out efficient policies on those problems, but also emphasize the cooperation of both bank system and stock market, making the both function complementary and promote mutually.