An Empirical Analysis of Chinese Stock Market

It is important to Correctly understand of stock market for setting up its development direction.Based on statistics data from 1987 to 2003,the article provides an empirical analysis of the relation between chinese stock market and economic growth,which is also the function of Chinese stock market.It is discovered that the ratio of the raised capital(both inside and outside China) to amount of investment in fixed-assets play an active role to economy.On the contrary,the ratio of negotiable market capitalization to GDP has negative effect towards economy.Therefore,it suggests focusing on improvement of Raised Capital while properly control Stock bubble and excessive speculation so that to guarantee stable development of stock market.