Economic Management Journal

February 2014, Volume 3, Issue 1, PP.1-8

Analysis of Fragility of Chinese Stock

Exchanges and Its Causes in Modern Times
Jianhua Sun
School of Finance, the Central University of Finance and Economics, Beijing 100081 P.R China
Email: sunjianhua9976@sina.com

Abstract
The operation of Chinese stock exchanges was generally unstable and those stock exchanges were short-lived in modern. The
short business life of Chinese Stock Exchange was mainly due to its shaky foundation, lack of a self-regulatory mechanism, high
moral hazard, un-economy of the scale and the scope, fragility of stock exchanges increased by security futures speculation, the
speculation and vulnerability of Chinese stock exchanges exacerbated by the mixed management of financial industries, the lack
of Government's supervision of Chinese stock exchanges, Chinese stock exchanges degenerating into policy-oriented market. Now
China has become the world's second largest economy, further development of Chinese economy need to steadily promote the
development of internationalization of Chinese stock exchanges. And the development of internationalization of stock exchanges
will also increase the risk of stock market in China, therefore the supervision of stock exchanges should be strengthened.
Restructuring of the Shanghai and Shenzhen stock exchanges can be taken to strengthen their self-regulatory functions and
oversight of brokers, reduce or avoid the Government's administrative intervention on stock exchanges, weaken the policies
influence on stock exchange.
Keywords: Chinese Merchants; Stock Exchange; Speculation; Vulnerability

100081

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1952 36
21 1 10
14

1
2
3

6
7
8
9
10

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1919 4 19

1920 7

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1943

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1921

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1939
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1933 5 1934 9

2
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[DB/OL].http://www.hbdfz.com.cn, 2013-09-1[N].
17233 1921-02-15(10); [N]., 17364 , 1921-06-26(3);
[N]., 17377 , 1921-07-09(3); [N]. , 17392 ,
1921-07-24 (14); [N]. , 17456 , 1921-09-26(11); [N]. ,
17140 , 1921-11-06(4); [N]. , 19557 , 1927-08-22(5); [N]. , 20959 ,
1931-08-10(8); [N]. , 21694 , 1933-09-04(5); [N].
, 25424 , 1945-01-14 (1); .[N/OL]., http:// news.nen.com.cn,
2007-11-04; [DB/OL]., http://www.zglz.gov.cn/database.html, 2013-09-18; .
[M]. : 2005, pp214-216 .

2.1

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1937 1928 55.6 1947 6 1.8 [1]

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1932
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[7]
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4

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21

[10]

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2.8

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1948 1

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1943

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1944 12
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1948 1 5 1948 8 19
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1950 1952 7 19
1950 1 30
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10

36

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Email: sunjianhua9976@sina.com

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