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the government should optimize the structure of fiscal expenditure, increase investment in key areas to ensure policy stability, and thus give investors enough confidence. At the same time, due to the impact of government action on the securities market, the formation of a market turn the situation around the policy, making the stock market difficult to reflect a true reflection of economic development, which greatly reduced the role of market mechanism.

4.4 Restrict the Process of China’s Economic Reform
The “policy market” pattern formatted in the process of China’s institutional reform, means that Government executive departments may be value the power of the policy too much; but in the meantime they are also “fed up” by the burden “policy market” brought about, while ignored of a series thorny issues appears in the market. As a result, the policy alternative to a fair system construction and improvement of investment environment, to control the market or to complete laissez faire market, this “loosely tight” model, which makes the policy reliability on a greatly reduce, and intervention costs with the expansion of market scale becomes more and more.

As a result, when the government hopes the market to share the costs of adjustment, then they come to realize that the market is not developed maturely enough to get into a self recovery “stage”. This would not only enable the Government missed an opportunity to intervene, but also makes more difficult to further increase market stability.Policy market stems from the weakness of market forces, which have partly played a replaced function for the market mechanism, and showed a gradual weakening trend as the market stronger and which shows the policy market for renunciation of Chinese stock market is inevitable. But this can never be accomplished at one stroke out, which needs the market parties involved, especially the manage layer to make adjustments accordingly. 

5 Recommendations for Improving the Stock Market
5.1 Institutional Innovation
Chinas stock market have developed generally well till today, the problems appeared should be considered that the problem is systemic or a systemic problem, not a totally policy issue. Thus, the problems Chinas stock market would solve first should be institutional innovation.
Institutional innovation of the current stock market is to eliminate deficiencies in the system to improve the efficiency of the stock market, these measures should be taken to solve the problem: to tackle this problem is that the lifting of the stock markets implicit contract of indemnity, which will scatter out of the risks from the government to the society, to achieve the socialization of market risk; Palliative measure is to reduce the listed companies, institutional investors and other stakeholder expectations of rent-seeking benefits, and step up rent seeking costs greater, thereby defuse their opportunistic motives. That, in order to maintain the stable development of Chinas stock market, we must weaken the policy of municipal characteristics of Chinas stock market, first of all means to reduce administrative intervention in the stock market, increase the use of economic policy, regulating the stock markets strength. Second, the establishment and strengthening of the Governments main economic department would be in charge of communication and consultation system betw本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。