How to Redesign Chinese Capital Market ? ——Based on the Perspectives of“Equity and Effi ciency”and “Enriching People's Life and Prospering China”
Zhao Yanjing;Zhou Yinggang;Xiamen University;
Efficiency and equity are two basic goals in any society and economic system. As an important system of resource allocation and wealth distribution, capital market should well serve the real economy and share the benefi ts of economic growth with all the people. However, the existing Chinese capital market should be reformed in regards to achieving strategic objectives of both enriching the people and prospering the nation. On one hand,"Public Funds"which can turn into lifetime sponsors and long-term strategic investors should be established on behalf of all the people and be allowed to participate in the capital market. By the means, the distorted behaviors in the capital markets can get corrected and the channels which can distribute the wealth to the public in a direct and fair manner will be established. On the other hand, the rules of the capital market should be developed in favor of real economy and public interests. Capital market valuation should be re-built on the basis of real earnings and cash flow. Subject to differentiated treatment, stocks should be effective in guiding capital into the real economic needs.