This study introduces the emergence causes and compares and analyzes development of Chinese stock market from 1991 to 2000 from size, surveillance system, market structure, investor structure and statues, return and risk and volatility characters of share prices aspects. This study shows that development pace is very fast, however Chinese stock market is volatile and not efficient. Trading volume and interest rate redound to further explain volatility of share prices. This paper is concluded by highlighting some of the difficulties faced by China in developing its stock market in the context of traditional finance and economic theory and the experience of developed economies.
AllenF.GaleD., “A welfare comparison of intermediaries and financial markets in Germany and the US,” in European Economic Review39 (2), (1995), 179–209
2.
AllenF.GaleD., “Diversity of opinion and financing of new technologies”, in J. of Financial Intermediation8, (1999), 1–22
AtjeRaymondJovanovicBoyan, “Stock Markets and Development”, in European Economic Review37 (2/3), (1993), 632–640
5.
Nai-FuChenRichardRollStephenRoss A., “Economic Forces and the Stock Market”, in Journal of Business59 (3), (1986), 383–404
6.
CrouchR. L., “The Volume of Transaction and price changes on the New York stock exchange,” in Financial Analysts Journal26, (1970), 104–109
7.
Demirguc-KuntAsliLevineRoss, “Stock Markets, Corporate Finance and Economic Growth: An Overview”, in The World Bank Economic Review10 (2), (1996a), 223–239
8.
Demirguc-KuntAsliLevineRoss, “Stock Market Development and Financial Intermediaries: Stylized Facts”, in The World Bank Economic Review10 (2), (1996b), 291–321
9.
DiamondD.W., “Monitoring and Reputation: the Choice between Bank Loans and Directly Placed Debt”, in Journal of political Economy99 (4), (1991)
10.
EppsT., “Security price changes and transaction volumes: Theory and evidence”. In American Economic Review65, (1975), 586–597
11.
GaffikinM. J., Contemporary Accounting Thought: Essays in Honour of Raymond J. Chambers, (Prentice-Hall of Australia, 1984)
12.
GoldsmithRaymond W., Financial Structure and Development, (New Haven, CN: Yale University Press, 1969)
13.
GrossmanS., “Dynamic asset allocation and the informational efficiency of markets”, in Journal of Finance50, (1995), 773–788
14.
GrossmanS.StiglitzJ., “On the impossibility of informationally efficient markets”, in American Economic Review70, (1980), 393–408
15.
GurleyJohnShawEdward, “Financial Aspects of Economic Development”, in American Economic Review, (1955), 515–38
16.
GurleyJohnShawEdward, Money in a Theory of Finance, (Washington, DC: Brookings Institutions, 1960)
17.
GurleyJohnShawEdward, “Financial Structure and Economic Development”, in Economic Development and Cultural Change34 (2), (1967), 333–46
18.
HarrisRichard D.F, “Stock Markets and Development: A Re-assessment”, in European Economic Review, (1997)
19.
LakonishokJ.ShleiferA.VishnyR.W., “The Impact of Institutional Trading on Stock Prices,” in Journal of Financial Economics32(1), (1992), 23–44
20.
LevineRoss, “Stock Markets, Growth, and Tax Policy”, in Journal of Finance46 (4): (1991), 1445–65
21.
LevineRoss, “Financial Development and Economic Growth: Views and Agenda”, in Journal of Economic Literature35 (2), (1997), 688–726
22.
LevineRossSaraZervos, “Stock Market Development and Long-Run Growth”, in The World Bank Economic Review, Vol. 10, No.2, (1996)
23.
LevineRossSaraZervos, “Stock Markets, Banks, and Economic Growth”, in American Economic Review, (1998)
24.
LevineRossSaraZervos, “Stock markets, Banks, and Economic Growth”, in The World Bank Policy Research Working Paper No. (1996), 1690
25.
LevineRossZervosSara, “Stock Markets, Banks, and Economic Growth”, in American Economic Review88 (2), (1998), 537–58
26.
LevineRossLoayzaNormanBeckThorsten, “Financial intermediation and growth: Causality and causes”, in Journal of Monetary Economics46, (2000), 31–77
27.
McKinnonR.I., Money and Capital in Economic Development, (Washington: The Brookings Institution, 1973)
28.
HermesNielsLensinkRobert, “Financial System development in transition Economies”, in Journal of Banking & Finance, (2000), 507–524
29.
NutiD.M., “Remonetization and Capital Markets in the Reform of Centrally-Planned economies”, In Banking and Finance in Eastern Europe, PrindlAndreas R., ed. (Cambridge: Woodhead-Faulkner Ltd.1992)
30.
ShawEdward S., Financial Deepening in Economic Development, (New York: Oxford University Press, 1973)
31.
SinghA., “Stock Markets, Financial Liberalization and Economic Development”, in Economic Journal107, (1997), 771–82
32.
SinghA., “The stock market and economic development: should developing countries encourage stock markets?”, in UNCTAD Review4, (1993), 1–28
33.
SmirlockM.StarksL., 1988, “An Empirical Analysis of the Stock Price-Volume Relationship,” in Journal of Banking and Finance12, 802–816
34.
SteinJ., “Efficient Capital Markets, Inefficient Firms: A Model of Myopic Behavior”, in Quarterly Journal of Economics104, (1997), 655–669
35.
GarciaValeriano F.LiuLin, “Macroeconomic Determinants of stock Market Development”, in Journal of Applied EconomicsVol. II, No. 1, (1999)
36.
BodieZviKaneAlexMarcusAlan J., Investment (third edition), (The McGraw-Hill Companies, Inc., 1996)
