Chinese Stock Market Inquiry Research System Problems

A healthy stock market is very important to economy. China’s stock market has rapid growth and formed a fundamental mechanism in a comparatively short period of time. But, we should also clearly realize that our country stock market is still immature and has many problems. Excessive government intervention is a problem. And the inquiry system is still not perfect. Since2008, Chinese stock market fell to2000points from6000points or so. In recent years, it has always remained in the doldrums. So we must pay attention to the problem at this stage to promote China’s stock market out of the woods, to ensure the healthy and stable development. Firstly, this paper review the IPO issuance examination system, pricing system, and the reform of the inquiry system. And then, list the institutional arrangements of some developed countries and regions including the United States, South Korea, Japan, Germany, Taiwan, Hong Kong and other mature stock markets. By comparison with these markets, this paper analysis the existing shortcomings of Chinese stock distribution system.According to the interest group theory. This paper argues that Chinese stock market has many interest groups. These interest groups issued long-term game according to their interest.Game theory is the theory which researches issues of straegy-making of many participants. It becomes one of the most common analytical tools in modern economics. This thesis tries to apply the game theory to the financial market of China and analyses relevant issues of Chinese financial market from angle of game theory. The institutional arrangements of the stock market is the result of the balance of power changes of joiners. In a broad sense, those joiners including regulators, issuers, underwriters, investors and so on. Regulators in the stock issue is still dominant. The issuer has the advantage in the price fix. Investors in the stock market are in a weak position.In order to promote the deepening of the issuing system reform of the stock market in China, and improve the efficiency of resource allocation in the capital market, this paper argues that we can take the following measures, which include further improving the distribution system of the new equity issuing, establishing and improve the constraint mechanism on the broker in the process of the company issuing IPO, making effort to improve the existing accumulated bidding inquiry system to make it more comprehensive.We also need variety ways to coordinate the interests of the stakeholders. And need to strengthen the re-regulation of the regulators. At the same time, we need to improve the quality of the issuers, to improve the regulatory mechanism of the underwriters, to develop rational investors.