The main difficulty for China’s economic transformation lies in the capital market. Firstly, the function of resource allocation has been distorted and alienated. Secondly, the efficiency of bank’s direct financing has been reducing in the conversion of new and old kinetic energy, and the function of capital market has not been brought into full play, especially the financing function of IPO. Thirdly, the driving force of economic growth lies in the economic resources. If we let the competent people or management teams in the society control these resources, they can achieve the greatest benefits through their operation or investment, so as to realize economic growth. Specifically, there are four considerations.1. The transformation and upgrading of China's industrial structure has not been fully supported by the capital market2. Recently, the scale of refinancing in our capital market is larger than that of IPO, which means the function of resource allocation in capital market has been distorted.3. Recently, the proportion funds raised by bank IPO is high, which means the function of capital market is alienated.4. The efficiency of state-owned listed companies is far lower than that of private listed companies, so we need to speed up the reform of mixed ownership of state-owned listed companies.
