China's Stock Market Policy Effects The Weakening Analysis

From the development of our stock market, we find the policy factor has important impact on the price. But these years, the policy impact is decreasing. We want to know the reason behind.The decreasing policy impact has shown the mature of our stock market, but the contiguous fall also has shown that there are many problems in our market, we can not solve these problems by policies before as before. Then what should we do to make our stock market develop well.The first part, in order to know whether the policy impact is decreasing, we review the important stock policy from 1993 to 2004, and analyze from the short-term impact and long-term impact. Then we find the policy impact is decreasing indeed.The second part, we research why the policy impact is decreasing, we study the mechanism of the policy impact and find the scarcity of the investment value is the essential factor. One hand, the scarcity of the investment value makes the investor would not buy the stock, when the market have fallen a very long time and effected the function of financing and society stabilization, the government must publicize policy make the market rise; On the other hand, although the invest value is scarce, the policy can give the speculator good theme. But such strengthen is determined by the volume of the stock market and the reflect of the speculator .Buy study the data of our stock market, we find the quick development of the market volume is the biggest reason of the decrease of policy fact during 1996-1997, and the change of theinstitutional investor's behavior makes the policy impact decrease seriously from 2004.The third part, we discuss the reformation of our stock market. The decrease of the policy impact on the market has shown that the reformation is imperative. Consider the mechanism of the policy impact, we think that taking actions to improve the investment value is the most important among all the reformation measures, this is determined by the power of the market. And because it will take a very long time to...