The Analysis of Extension Theory on Wealth Effect in Stock Market of China

摘要

Stock market''s wealth effect is-remarkable in developed country. In recent years, the question about stock market''s wealth effect of China had become the focal thesis which many domestic and foreign scholars pay attention to. The conclusion of these researches is that stock market''s wealth effect is faint from theory and demonstration in China, although development of stock market has more and more influence on the whole national economy in China. The article studies the question again proceeding with the concept of wealth effect. But this article tries to explain the reason of faint wealth effect of stock market in China further through four aspects such as the goal, the characteristic of market environment, supervising and other factors which using the basic theory and method of a new developing science - the extension theory, which solves incompatible problems by transforming and utilizing special symbol and formula. Then we know that stock market''s wealth effect is faint in China from the goal, depth and extent (such as the amount of investors and the quantity of fund), the steady extent of run, the quality of company, the extent of supervising and others. Finally, the article advises several proposals to strengthen wealth effect of stock market in China by establishing the model of the matter element analysis: (1) building a stable, durative and flourishing securities market; (2) expanding stock market scale step by step; (3) enhancing the credit-building of listed corporation (such as establishing the true modern enterprise system, raising and establishing one batch appraisal organization which have social credit, establishing reporting and complaint station to enhance supervision of social and public); (4) protecting the interest of small investors; (5) strengthening supervising and management of the stock market; (6) reducing the stock market transaction cost. These proposals are useful to government of our country at presents