Abstract:This paper discusses the new China economy devleopment mode in 1998—2002.In this period,China economy have grown stably but with faster speed, which never occurred since 1949.we sum up the active financial policy and moderate monetary policy which government implemented in this five years and want to add new content of the policy tool base for macro-economy adjustment in Chinas socialism market economy,after that,we have some international comparison and give our advice:China should create a new way in which China economy can grow stably in the 8%—10% interval in the future and we also should remember several overheated lessons in the history.

Abstract:The “Marketization Index for Chinas Provinces”,as reported in this paper,is an empirical instrument for the analysis of correlation between the institutional changes and economic performance,and a policy-research tool in promotion of market-oriented reforms with the refernece to the regional difference in practices.This paper explains that,based on the statistic and survey data on five main aspects and 23 indicators,using the “Main Component Analysis”as the basic econometric method,the Index is composed with solid scientific foundation,enriched information,and can be used as an “institutional variable” in many theoretical and policy studies.

Abstract:This paper argues that the regional income gap of China is mainly due to the non-viability of enterprises caused by over-capital-intensity which is not matched to the endowment structure. Empirical research is consistent with this hypothesis.

Abstract:As an important policy for government to stimulate backward regions to develop, Inter-governmental transferment since the tax-sharing system was established in 1994 in China is tested in terms of regional economic convergence, which concludes that it does not have effects on narrowing the provincial disparity, then the reason is explained by an empirical analysis of grants assignment into its factors, and finally some policy suggestion is brought forward.

Abstract:To promote the healthy development of Chinese real asset market,it is very crucial to prevent it from bubbling up.Based on the rationales of rational bubbles,we construct a local RAM equilibrium model and propose the relative conditions for the birth and existence as well as the burst of the rational bubbles.The model provides a simplified and comprehensive explanation on all the effects in forming rational bubbles by the individuals rational expectation,the banks financing and the governments policies.Meanwhile the model is well consistent with several prominent cases of real asset bubbles in the past.Finally,some proposals are put forward in the macroeconomic perspective.

Abstract:The study finds empirical support to the financial intermediation theories that the longer the banking relationship, the lower the rate on the foreign currency loans. It also finds empirical support to the rate reducing effects of other key factors such as the majority shareholding by the foreign sponsors, provision of third party guarantee. However, the renminbi-denominated loan rate will be reduced as FIEs maintain relationship with more banks. This suggests that banks compete for customers by offering cheaper credits. If competition is the predominant determinant of loan pricing and that such level of competition does not stimulate more innovative and better quality bank services and products as a means of differentiation, the inflexible Renminbi loan pricing will ultimately deteriorate the profitability of the banks and affect the financial health of the banking system.

Abstract:This article makes a point of that RMB is capable of becoming one of the world currencies. Based on a review of the occurrence, development and current status of the world currencies, the article discusses the requirements for RMB to become a world currency, as well as the benefits and problems may be caused by to be a world currency. By discussing with different views about this issue, the article believes of that RMB has chance of becoming a world currency, and suggests that we should take a positive attitude to this fact, and adopt measures to promote it when the time is coming.

Abstract:The Rational Expectations hypothesis, initially developed by Muth, has played a critical role in economic and financial studies. But it is still unclear whether this hypothesis is consistent with peoples decision making. The existing empirical results are mixed. In this article, we test the rational expectation hypothesis directly using survey data from Chinese stock market. We also develop a technique to analyze the discrete or limited independent variable models. We find the survey forecasts can be improved significantly with past information.

Abstract:The long-memory effect in stock market is a hotspot for financial economists. Based On the literatures using classical R/S analysis, this paper has introduced the modified R/S analysis and ARFIMA model and puts forward to study the returns distribution in Chinese stock market. Twenty-two logarithm return rate series including stock price indices and corporate stocks are studied in this investigation. The empirical result makes clear that these series are non-normality with positive skewness, leptokurtosis, fat tails and special autocorrelation and partial autocorrelation structure. But further investigation shows that no evidence of fractal structure is found in the stock indices, so the aggregate market has no long-memory. The results highlight the differences in fractal structure across different companies series, and show that only several have significantly long-memory effect. This conclusion is different from other studies using classical R/S analysis obviously.

Abstract:This report studies the interest of circulating & non-circulating share holders by the two share-issuing ways including share placement and additional issue through theoretical and empirical research. The circulating share holders concern with five parties such as older shareholders participating and not participating in the additional issue, new shareholders participating in the additional issue, circulating share holders participating and not participating in the placement. The authors discover that share placement can better balance the interest of all parties than additional issue in the current securities market of China. Meanwhile, the empirical research shows that the discount rate of placement has a positive correlation with the excess return rate for circulating share holders, while correlation with the growth rate of net asset per share is of insignificance. This conclusion shows that placement with appropriate discount rate can facilitate both the increases of the net assets for non-circulating share holders and the protection of investment returns for the circulating share holders. In view of these results, the authors offer their policy recommendations for encouraging the practice of share placement, placement with higher discount rate, the upgrading of requirements for additional issue, additional issue preferential for older shareholders, etc.