중국 주식시장의 형성배경, 발전과정, 구조적 결함 및 제도적 제약 - 고정비용 개념의 적용을 통한 분석

Despite the recent capital market developments, China`s stock market still has a long way to go in terms of maturity and sophistication. This paper examines development process, structural problems, and institutional constraints of China`s stock market based on the recently fashionable concept of fixed costs associated with establishment of market infrastructures. The backgrounds of emergence of the country`s stock market during the first half of 1980s are quite similar to those of formation of informal financial markets in other developing countries.<BR> During the 1990s, the country`s stock market was known for its characteristically high level of volatility and susceptibility to state policy vagaries, given the overwhelming predominance of individual investors and their speculative and short-term orientation. In addition, China`s stock market has been largely sealed off from foreign investors, who can only access the diminutive Br-share market.<BR> The current structural problems of China`s stock market are several. Firstly, Chinese listed companies have complicated share structures with various types of shares. Moreover, a significant portion of issued shares is not tradable on the bourse. Secondly, the immaturity of corporate accounting practice and the lack of information disclosure in the market exacerbate insufficient shareholder protection. The paucity of market infrastructure such as informational capital, human capital, organizational capital, and legal frameworks is one of the main reasons why China still maintains the bank-based financial system as in other developing countries.<BR> The underdeveloped stock market in China is due primarily to political constraints, financial repression policies, and fixed costs associated with the establishment of market infrastructures. The political constraints is closely related to ownership structures and policy burdens of state-owned enterprises. The financial repression policies weaken competition among various financial markets. The fixed costs represent, in part, China`s development stage. As income rises, the burdens of fixed costs are to be mitigated.