The funding chain of major countries: Capital flows and wealth redistribution in the capital market: Capital flows and wealth redistribution in the capital market

Author: Zhao Huixin
Publisher:
Publish Date: 2003-08-01
Features: The main innovation of this book is the first international comparative study of macroeconomic funds flow, particularly in the capital market, from the perspective of funds flow statistics, as well as the first systematic research on wealth redistribution in the capital market from the same perspective. The book examines the price formation mechanism and wealth redistribution effects of the capital market from the perspective of monetary funds flow. The author compares the central bank statistical reports of the top six GDP countries in the world—USA, Japan, Germany, UK, France, and China—and finds that China's intersectoral funds flow patterns differ significantly from those of other countries. By analyzing World Bank statistical data, the author concludes that the reason for these differences lies in China's top-ranking domestic savings and investment rates. The author believes that an excessively low final consumption rate is a major reason why listed companies fail to generate cash returns for shareholders, and that the excessive hot money resulting from this low final consumption rate is the monetary foundation for speculative activities in the secondary market. Additionally, reducing government regulation is beneficial to the capital market's role in resource allocation and also to the interests of investors.