The Research On Development And Current Situation Of Chinese Virtual Economy

The virtualization of economy is the transformation of economy from seventies of twentieth century. In recent decades, rapid expanded financial assets and financial derivatives activated the world economy, but at the same time it has been also attacked by financial crisis for many times. From reform and opening, especially in nineties of twentieth century, securities business and real estate market began to thrive. Virtual economy developed fast and had a great role on economic development in China. The Southeast Asian financial crisis alarmed us.The serious effect followed by the wrong running of virtual economy makes us realize its importance. Getting along with virtual economy and physical economy was brought up explicitly in the report of sixteenth Plenary Session of the CCP in 2002, so the importance of virtual economy is very clearly.Based on economic theory, this paper analyzes several problems of virtual economy, especially in securities business and real estate market. The two parts are deeply influencing the economy. From the situation of past two years, both securities business and real estate markets have changed very much. The securities business index began to rise from the end of 2005 and reached a new height in history in 2007. Chinese securities business ranks the third place of the world, only next to U.S.A and E.U. The development of real estate market has been also remarkable, the price has been rising substantially, becoming one of critical economic problems. From 2004, the government has legislated some laws and regulations to control the heat of real estate market, but the effect is limited. All of these problems need to be studied carefully. Base on analyzing a variety of current situations of virtual economy in China, this paper debates deeply the securities business and real estate market and brings up my own opinions on the development of securities business and real estate markets, and gives the countermeasures against the problems.This paper has five parts. The first part is general comments, giving the purpose and meaning of the theme, the research ways, the sequences of the paper and main content. The second part is the first chapter: the general research on the virtual economy. This part is also the theory of the virtual economy, introducing the meaning and its development of virtual economy and analyzing virtual nature of contents covered in virtual economy. The third part is the second chapter, studies some problems of the virtual economy in China, including the development and current situation of securities business and real estate market, and some other problems such as intangible assets and collection etc. The fourth part is the third chapter, in this part, based of the previous chapter on analyzing the development and the problems of Chinese securities business and real estate market, this paper give the countermeasures referring to foreign experiences. The fifth part is the conclusion. The author summarizes the development of the virtual economy and gives my own opinions on it in general.