Deepening Of Capital Market Development And Reform Of State-owned Enterprises

Ever since China adopted reform and opening-up policy, its national economy has been increasingly diversified, but state ownership still remains as a dominant factor in the national economy and plays a decisive role in the state economy growth. State-owned enterprises(SOEs) represent the leading force of the state's public ownership and they have made great achievements in the past twenty years and have provided a lot of constructive experience and approach for the further deepening of SOEs reform. However, currently a number of problems still hinder the reform and development of SOEs. The strategic adjustment of state-owned economy is in a critical period. How to understand the relationship between capital markets and SOEs reform and how to make use of capital market to promote reform mean far-reaching significance to deepen reform and optimize the capital market.Finance is the core of modern economy. In this paper, the discussion of capital market narrowly focuses on the stock market. This article reviews the history and points out the bottleneck on the basis of analysis of the current status of SOEs reform. In response to these bottlenecks above, the paper indicates the own functions of capital market and impetus approach. Concerning the specific functions above, the mechanism among each other are inter-connected, interdependent and complex.The article tries to divide the mechanism into four levels: the property rights level is in the core role, the macro level relates Strategic adjustment of state-owned economy, financial and operating levels relate every specific enterprise.Given the split of capital market is a special product of China's capital market, the reform had a tremendous impact on China's capital market. This article also analyzes the origin of this problem, specific settlement process and the positive impact of capital market. However, the capital market still has many defects. On this basis, analysis the current problems and inefficiency in the development of the capital market in China. Finally, a conclusion is reached on the basis of a thorough analysis of problems and concrete measures are suggested to further develop capital market. These measures hopefully will improve the efficiency of SOEs and at the same time exert positive effect on the healthy development of capital market as well.