Saving -- Investment Transformation in the Capital Market

Author: Ying Zhanyu
Publisher:
Publish Date: 2004-12-01
Features: This book attempts to conduct a brand-new theoretical exploration of the existence and development of capital markets in a market economy by applying the cutting-edge achievements of modern financial theory. The book first starts with a general analysis of the savings-investment transformation process, finding that although the development of capital markets has brought certain qualitative changes to the transformation mechanism, in terms of scale, they have always been in a secondary position compared to financial intermediaries like banks. Subsequently, using the analytical paradigm of functional finance theory, the book examines the relationship between capital markets and the four perspectives of liquidity provision, risk allocation optimization, information processing, and the mitigation of incentive problems. It preliminarily constructs a brand-new analytical framework and conducts a systematic and profound study of the numerous supportive functions of capital markets in the savings-investment transformation process. Finally, combining China's practice, the book offers some theoretical reflections on China's capital markets from a functional perspective.