1. The most important and active 1740 large enterprises in China's economy raised a lot of production and investment funds, which greatly promoted investment, employment, export and consumption, and became an important battlefield of China's economy.
2. Concentrate the idle funds of hundreds of millions of people and shorten the risk of long-term investment. It has opened up a series of new channels for urban and rural residents to invest and finance. There are many opportunities in China stock market (for example, Suning Appliance (13.93, 0. 18, 1.3 1%) has increased 39 times in six years). Buy stock funds when the stock market is bullish and bonds and convertible bonds when the stock market is bearish. This changed the "post-planned economy era" in which residents had nowhere to invest.
Three, for the most important big battle of China's economic reform, make a significant contribution to the reform of enterprise ownership. Under the traditional planned economy, batches of state-owned enterprises with rigid and inefficient systems were reformed into joint-stock companies with relatively clear property rights and relatively high efficiency, which enabled the most difficult state-owned enterprise reform to be completed step by step.
Fourth, it has promoted the rapid development of thousands of small and medium-sized private enterprises. Since the establishment of SME board and GEM, a large number of hungry SMEs have raised huge funds. There are 440 small and medium-sized listed companies and 93 listed companies on the Growth Enterprise Market, which have become revolutionary shrines and revolutionary bases for small and medium-sized enterprises and start-ups.
On the eve of China's entry into WTO, the problem of bad debts of commercial banks, which people are most worried about, finally stands out from the stock market which has been difficult to solve for many years in China's financial lifeline. Bank of China, Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank, China Everbright Bank, China Merchants Bank, Shanghai Pudong Development Bank, Bank of Ningbo, Nanjing Bank, Industrial Bank, etc. More than 90% of large, medium and small commercial banks went public smoothly, which greatly replenished their reserves, raised a lot of capital, and resolved financial risks and crises, making China Commercial Bank in the best period in history. In the global financial crisis in 2008, China's economy has firmly become the anchor of the world economy.
Sixth, China's economy has truly realized the optimal allocation of resources. The China stock market has expanded the contact opportunities between the capital supply and demand sides, and opened up broad investment and financing channels for both sides. The market has achieved high stock prices and popularity of blue-chip stocks, new economy, new energy and emerging industries, helping China's economy to complete the survival of the fittest and optimize the allocation of resources; Make capital and talents flow to the industries and enterprises that the society needs most as much as possible. The rising sun and emerging industries with more development prospects in Ran Ran are always favored by investors, who get high-priced rights issue and additional issuance opportunities, get a lot of social funds, and attract a large number of outstanding talents with high salaries, which eventually leads to the vigorous development of enterprises and industries.
7. The stock market has become a natural regulator of macro-economy, an outlet of inflation and a reservoir of money, and has a significant regulatory function. With the rapid economic growth in China, the currency circulation has also increased rapidly. The M2 of 1999 is 9 trillion, and now it is 69.9 trillion. Huge excess liquidity poured into non-renewable areas: gold, oil and real estate, which also led to inflation.
When there is too much money in the China stock market, the central bank spits out a large number of central bank bills and government bonds to absorb funds; During the period of deflation and monetary tightening, the central bank ordered to spit out a large amount of money through open market operations to moisten the macro-economy. In addition, China stock market is the strongest in the world in terms of IPO and rights issue (financing and refinancing functions), raising hundreds of billions of RMB every year. Without the role of the stock market as a reservoir and flood diversion area, China's inflation would have exceeded double digits.
8. The China stock market is promoting the internationalization of RMB, which will eventually become a hard currency in the world. The real purchasing power of RMB is very high and it is the currency with the highest gold content in the world. In addition, China has become the second largest economy in the world. Therefore, it is only a matter of time before RMB becomes a hard currency in the world.
However, the rapid and premature appreciation may lead China to become the second Japanese in the 20 years of the Great Depression in the 1990s. So China resisted the pressure, step by step. It is very likely that China will complete the process of RMB appreciation and internationalization by opening the stock market and bond market in small steps, then gradually expanding, opening the capital market first, and then opening all capital projects and money markets.
9. China stock market has become one of the most important sub-markets in the global stock market. Its market value is 24.26 trillion, ranking third in the world, with a total financing of 3.76 trillion. China's stock market roared and the global stock market trembled. In recent 2-3 years, as long as the China stock market drops sharply and rises sharply, it will cause great fluctuations in the world stock market.