Between The Money Market And Capital Market In China Unicom

The connection between the monetary market and the capital market is one of the most important questions that need to be resolved in the development of our financial market nowadays. Since 1995, the connection between the monetary market and the capital market in china is almost obstructed under the institutions of separate operation and separate control in different financial fields. The separation of the participant made it difficult of the cash flow between the two markets. Although the condition of the separation between the monetary market and the capital market was ameliorated with some policies issued in 1999, the separation between the two markets still exists which have endangered our economic lives.With the trend of financial freedom and global mixed operation, the theory and the practice in the mature capital market have proved that the monetary market and the capital market are connected in nature, the separation because of the policy will make the interest institution distorted and the resources unreasonably allocated. With the method of the combination between the theory and the practice as well as the history and the reality, this thesis did some research on the present conditions, the bases of the theory and the thoroughfare of the connection between the two markets, which was based on the experiences of the mature capital market in the foreign countries and combined with the status quo of our country.There are six parts in this thesis. The first part was the introduction of the background and the meaning of the research in the theory and the practice. The second part was the differentiation of the related definitions. The third part analyzed the present conditions of the connection between the monetary market and the capital market. The fourth part went to the bases of the theory during the connection through the review of the related theories. The fifth part generalized the experiences of the foreign countries and the illuminations to our reform. The sixth part desi'gned the thoroughfare of the two markets. Finally, based on the generalization of the whole thesis, there came the conclusions, which were in order to improve our competitive forces in the finance and meet the challenge of the financial globalization, we must realize the connection between the monetary market and the capital market through the financial media and the innovative financial tools in the present separate operation institutions. At the same time, we should avoid the risks and establish the related institutions, such as the market bases, auxiliary institutions of the transaction, the innovation of the financial tools, the mixed operation of the commercial banks and the monetary policies etc.