Research Proposal 范文
Intended field of study A research for Shanghai Stock Exchange
Proposed title
Has the regulation placed on the Shanghai Stock Exchange increased its internal efficiency?
Background and information
Make an observation of the whole world; we have witnessed the growth of the stock exchange which is from immature to mature. After these years’ improvements, it becomes more important, not only in financial market, but also in people’s lives. There are more and more people began to take part in the stock exchange in the last decade or so. Based on this, establish a good stock exchange system is the main purpose of every country. But what is the standard to estimate the stock exchange internal efficiency is also a significant issue. A bad system may result high risk for investors and even influence the financial market. Meanwhile this is an interesting topic. However, different stock exchange has different situation.
This dissertation will focus on Shanghai Stock Exchange to do some research, and develop this issue.
Research aim
This dissertation aimed to analyse the regulation placed on Shanghai Stock Exchange, including the changes of the regulation and what factors result in these changes, as well as how the regulation works. Then compare with the internal efficiency of Shanghai Stock Exchange during the past 20 years, find out if the regulation has improved the internal efficiency.
The development of China stock market, the introduction and history of Shanghai Stock Exchange
Firstly, it is necessary to know what exactly stock exchange is. From Wikipedia,
“A stock exchange is an entity which provides ‘trading’ facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts, derivatives, pooled investment products and bonds.”
--------- http://en.wikipedia.org/wiki/Stock_exchange
In order to know Shanghai stock exchange very well, it is necessary to know the history of China stock market.
Talking about China stock market, it has a long history. However, it is linked with Chinese policy, national conditions as well as the economy improvement strongly. As everyone known, Chinese national conditions are special, so the development of stock market is arduous. And every change in regulation is also connected with Chinese national conditions. There is someone who played an important role in this process, his name is Deng Xiaoping.
Currently in mainland china, there are two stock exchanges; they are Shanghai Stock Exchange and Shenzhen Stock Exchange. According to the law, they just provide facilities; don’t aim to realize profits. Their establishment and dissolution are determined by the State Department.
Shanghai Stock Exchange was established on 26th November 1990 and began to exchange on 19th December at the same year. It is the first stock exchange in mainland China.
At the very beginning, there were just 25 securities trading organizations, now 20 years passed, it became more and more mature; by the end of 2006, it has more than 840 listed companies. At the same time, the regulation is improving as well. Now it’s a very mature exchange.
However, whether these changes during these years are positive or not is a significant issue. So it is important to do some research to find out how the regulation works and affects the internal efficiency.
Methodology and anticipated results
In order to reach the research aim, it is necessary to do some secondary research about the changes of the regulations placed on Shanghai stock Exchange in these years.
When it was established in 1990, there was no proper regulations, and just has 25 securities trading organizations. Everything is immature at that time. The organization of the stock exchange itself did
