CONTENTS

ABSTRACT 2
摘 要 3
1. Introduction 4
1.1 Meaning and Purpose of the Study 4
1.2 Literature Review 5
1.3 China’s Stock Market Development and Current Situation 6
2 Empirical Analysis of the Impact of Policies on China’s Stock Market 10
2.1 Econometric modeling 10
2.2 Date Collection 13
2.3 Econometric Analysis and Conclusions 14
3 The Reason Why “Policy Market” Appears 15
3.1 The Emergence and Development of the Stock Market Has a Specific Institution Context 15
3.2 Stock Market is in the “Emerging + Transition” Stage of Development and the Market is still Weak 16
3.3 Government is the investment subject and interests basis of Stock Market 16
3.4 The Character of Investment in Chinese market 18
4 The Harmful consequences Cause by “Policy Market” 19
4.1 Weakening the Function of Resource Configuration of Stock Market 19
4.2 Encourage Speculation against the Investment Value 19
4.3 Increase the Cost of Reform of Government Policy 20
4.4 Restrict the Process of China’s Economic Reform 21
5 Recommendations for Improving the Stock Market 21
5.1 Institutional Innovation 21
5.2 Coordination in Market Policy and Macroeconomic Policy 22
5.3 Block of the International Financial Capital and Put into the International Financial Institutions 23
5.4 Class Action Trial in the Stock Market System 24
Conclusion 25
References 26