The financial market is also calledCapital market, including the money market and capital market, is the financing market.so-calledFinancingMeans that in the process of economic operation, both the supply and demand sides of capital use variousfinancial instrumentsThe activity of adjusting capital surplus is allfinancial transactions A general term for activities.Various financial instruments are traded in the financial market, such as stocks, bonds, certificates of deposit, etc.Financing is referred to as financing, generally divided intoDirect financingAnd indirect financing.Direct financing refers to the direct financing between the supply and demand of funds, that isFund demanderDirectly raise funds from institutions and individuals with surplus funds in the society through the financial market;Correspondingly, indirect financing refers to the financing activities carried out through banks, that is, the fund demanders takeFinancial intermediariesFinancing by applying for loans.Financial marketeconomic activityAll aspects ofPersonal wealthThe operation of enterprises and the efficiency of economic operation directly depend on the activities of the financial market.[2]
The composition of the financial market is very complex. It is a huge system composed of many different markets.However, financial markets are generally divided intomoney marketAnd capital market.The money market is the market for financing short-term (within one year) funds, and the capital market is the market for financing long-term (over one year) funds.Money market and capital market can be further divided into several different sub markets.Money market including financeInterbank borrowing market、Repurchase Agreement Market 、Commercial paper market、Bank acceptance bill market, Short termGovernment bond market、Large denomination negotiable deposit receipt marketEtc.Capital market includes medium and long-term credit market andstock market。The medium and long-term credit market is the loan market between financial institutions and industrial and commercial enterprises;The securities market is the market for financing through the issuance and trading of securities, includingbond market、stock market、Fund market、insurance market FinancingRental marketEtc.[2]
Compared with other markets, financial markets have their own unique characteristics:
First, the financial market is a market with capital as the trading object.
Second, the financial market transactions are not purely buying and selling relationships, but mainly lending and borrowing relationships, which reflectOwnership of fundsThe principle of separation from the right of use.
Third, financial markets can be both tangible and intangible.
Long before the formation of financial markets,Credit instrumentsIs generated.It isCommercial creditThe product of development.However, due to the limitations of commercial credit, these credit instruments can only exist between buyers and sellers of goods, and do not have extensive liquidity.along withcommodity economyOn the basis of commercial creditbank creditAnd financial markets.The emergence and development of bank credit and financial market in turn promoted the development of commercial credit, made credit instruments become trading tools in the financial market, and stimulated the potential importance of credit instruments.In the modern financial market, although credit instruments are still the main trading instruments, there are also stocks reflecting equity or ownership relationships and other assets with extensive liquidityFinancial derivatives, they are all marketsfinancial transactions Therefore, they are collectively called financial instruments.
Forming conditions
Formation conditions of financial market
1. The commodity economy is highly developed, and there are hugeFund demandAnd supply.
3. Financial transactions are rich in tools and diversified in forms.
4. There is sound financial legislation.
5. The government can manage the financial market reasonably and effectively.
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There are two forms of financial market: one isvisible market That is, the market where traders are concentrated in places with fixed locations and trading facilitiesstock exchangeIt is a typical tangible market, but all stock exchanges in the world adopt digitaltrading system Therefore, the tangible market is graduallyInvisible marketSubstituted;The other is the intangible market, that is, the market where traders are scattered in different places (institutions) or trade by means of telecommunications, such asOTC market, Globalforeign exchange marketandStock Exchange MarketAll belong to intangible market.
Several major sub markets in the financial market system have something in common:
1. Risk（Uncertainty）For example, risks in stock market and foreign exchange market.
2. The price is based on value and affected by supply and demand:Stock priceVolatilityBond priceThe fluctuation of is ultimately reflected in its value, which is affected by the relationship between supply and demand.
Relevant similar or different contents in the financial market system:
1. The functions of the financial market, the interbank borrowing market, the bond market, the stock market, the foreign exchange market,futures marketFunction, etc.
4. The similarities and differences between bills of exchange, promissory notes and cheques, etc.
Classification of financial market system
The financial market system includes the money market, capital market, foreign exchange market andgold marketThe financial market is generally divided into the money market and the capital market according to the duration of the trading instruments in the financial market.
The capital market is the market for financing long-term funds, includingMedium and long-term bank creditMarket and securities market.The medium and long-term credit market is the loan market between financial institutions and industrial and commercial enterprises. The securities market is the market for financing through the issuance and transaction of securities, including the bond market, stock market, insurance market, financial leasing market, etc.
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The financial market can be classified as follows from different perspectives:
financial market
(1) It can be divided into:
①international financial market, consisting of financial institutions engaged in international monetary business, whose business scope includes capital lendingForeign exchange tradingSecurities trading, capital trading, etc.
②Domestic financial marketIt is composed of domestic financial institutions and handles various monetary, securities and functional business activities.It is also divided into urban financial markets and rural financial markets, or into national, regional and local financial markets.
① Financial spot market, after the transaction of financing activitiesImmediate paymentDelivery;
②Financial futures marketThe investment and financing activities shall be paid and delivered on the specified date according to the contract after the transaction.Conduct financial market research according to the above internal linksScientific systemThe division of financial marketeffective management The foundation of.
In short, it has four major functions: 1. financing 2. regulation 3. risk avoidance 4. signaling
1. The financial market can quickly and effectively guide the rational flow of capital and improve capitalAllocative efficiency。
(1) It has expanded the contact opportunities between capital supply and demand, and facilitatedfinancial transactions , reducedfinancing cost And improved the efficiency of capital use.
(2) The financial market has opened up broader financing channels for fund raisers and investors.
(3) The financial market provides the necessary conditions for the conversion of various financial instruments with different terms and contents.
2. The financial market has the pricing function, and the fluctuation and change of the financial market price areeconomic activityOfbarometer。
（2）Enterprise assetsOfintrinsic value——IncludeCorporate debtValue andShareholders' equityThe value of is only "discovered" through the process of interaction between buyers and sellers in financial market transactions.That is, the valuation must be based on the price of the financial assets related to the enterprise formed by market transactions, rather than simplyAccounting statementsThe book value of is calculated as the basis.
(3) The pricing function of the financial market also depends on theDegree of perfectionAnd market efficiency.
(4) The pricing function of the financial market helps the marketResource allocationFunction realization.
3. Financial markets finance for financial management departmentsIndirect regulationConditions are provided.
(1) Indirect financial regulation system must rely on developed financial market transmissioncentral bankAnd guide the micro level through the price changes in the financial marketEconomic entityBehavior, implementingmonetary policyAdjustment intention.
(3) With various financial assets in financial institutionsReserve positionAnd liquidityReserve ratioFinancial institutions will be more widely involved in the operation of the financial market,central bankThe scope and strength of indirect regulation will continue to be strengthened with the development of financial markets.
4. The development of financial market can promote the innovation of financial instruments.
(1) Financial instruments are a set of standardized contracts combining expected returns and risks.
(2) Diversificationfinancial instrumentsThrough a more detailed division of the risks inherent in various investments in the economy, investors with different preferences for risks and returns can find the investment that best meets their needs.
(3) Diversified financial instruments can alsoFinancierThe diversified needs of are met as much as possible.
(1) The development of financial market promotes the diversification of residents' financial assets and the diversification of financial risks.
(2) Developing financial market is for residentsDiversification of investmentThe diversification of financial assets and the diversification of bank risks have opened the way for the sustainable and stable development of the economy.
(3) Residents choose multiplefinancial assets. Flexibly adjust the form of remaining currency preservation, enhance investment awareness andrisk awareness 。
(1) Search cost refers to the cost of finding a suitable counterparty.
(2) Information cost is the cost incurred in the process of evaluating the value of financial assets.
(3) The function of financial market to help reduce search and information costs is mainly played by professional financial institutions and consulting institutions.
Financial market characteristics
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The financial market can gather the buying and selling willingness of many investors, which greatly increases the success rate of single investor's transaction, namelymarket priceUnder the premise that the buyer of securities can buy the quantity he wants to buy, and the seller can sell the quantity he wants to sell.This attribute of the exchange is actually liquidity. The liquidity of the exchange makes the capital transfer between different times, regions and industries, so that resources can be allocated.The purpose of the financial market is to provide convenience for transactions, so liquidity is the basic economic function of the financial market. Without the function of centralized liquidity, the financial market will lose its foundation of existence.The role of liquidity is not only here, but also astransaction cost It is also reflected in the market'sTransaction mechanismThe decisive role of choice and change, becauseintegration of world economyIn the era of WTO, various financial markets are facing fierce competition, and liquidity is the most direct embodiment of their competitiveness."Liquidity is a function of the size and frequency of consignmentstrading system In other words, liquidity attracts liquidity.(Ruben, 1998), so the first mover can use liquidity to create greater liquidity, so as to occupy an obvious position in the competitionStrategic advantages。The characteristics of the financial market includeLending activitiesOfConcentration, trading placeUniversalityThe particularity of the trading partner, the particularity of the trading method, and the consistency of the market price.
In terms of bond issuance, from January to March 2013,Inter-bank bond marketCumulativeIssuance of bonds1798.42 billion yuan,Year on year growth25.9%。In March, inter-bankbond marketBonds issued reached 780.21 billion yuan, up 9.4% year on year and 57.1% higher than that in February.By the end of March, the bond marketBond custodyThe amount is 27.3 trillion yuan (includingCentral Bank BillOf which the amount of bond custody in the inter-bank bond market is 26.0 trillion yuan, accounting for 95.1% of the bond custody in the bond market.
From January to March, bonds with a maturity of less than 5 years accounted for the highest proportion of bonds issued in the inter-bank bond market.In March, the proportion of bonds with maturities of less than 5 years increased, and the proportion of bonds with maturities of 5 years (inclusive) to 10 years decreased.
From the perspective of interbank lending transactions, from January to March,Interbank borrowing marketThe overall operation is stable,Trading volumeIt totaled 10.3 trillion yuan, up 1.4% year on year.In March, the interbank borrowing market had a cumulative turnover of 3.7 trillion yuan, an increase of 31.2% over February.The trading varieties are still dominated by one day, with a total turnover of 3.1 trillion yuan in one day varieties, accounting for 83.9% of the total lending volume.
fromRepurchase transactionFrom January to March,Repurchase marketRelatively active trading, bondscollateralised repo The transaction reached 36.6 trillion yuan, up 24.0% year on year.In March, the trading volume of bond pledge repo was 13.3 trillion yuan, an increase of 34.7% over February.The trading variety is still dominated by one day, with a total turnover of 10.9 trillion yuan in one day varieties, accounting for 82.3% of the total pledged repo turnover.
In March,Repurchase rateThe overall level dropped slightly compared with that of last month.In March, the weighted average interest rate of bond pledge repo was 2.46%, down 43 basis points from February.
From the perspective of spot bond transactions, from January to March, spot bond transactions in the inter-bank bond market reached 21.7 trillion yuan, up 46.1% year on year.In March, cash bond transactions in the inter-bank bond market totaled 8.5 trillion yuan, an increase of 63.6% over February.
In March, the inter-bank bond index and the exchange bond index both rose slightly.At the end of March, the inter-bank bond index was 146.66 points, up 0.5 points from the end of last month,Increase0.34%；The bond index of the Exchange closed at 136.96 points at the end of the month, up 0.37 points or 0.27% from the end of the previous month.
From the perspective of stock trading, in March, the Shanghai Stock Exchange Index fell sharply, closing at 2236.6 points at the end of the month, 128.97 points lower than the closing at the end of February,Decline5.45%.The daily average trading volume of Shanghai A-share market was 97.13 billion yuan, a decrease of 11.35 billion yuan over the previous month.
media
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Financial market mediaIt refers to those who act asTrading medium, organizations, institutions or individuals engaged in transactions or promoting the completion of transactions, that is, financial market intermediaries.
financial market
The media in the financial market is also a kind of participant in the financial market, but its role is similar to that of generalFinancial market entitiesThere are important differences:
First, the participation of financial market media in financial market activities is to promote the completion of transactions of the main body in the financial market as an intermediary and collect from themTransaction commission；
Second, justPrimitive motiveIn terms of financial market mediaspeculatorFinancial transactions are not conducted as investors. Of course, such transactions play an important role in activating the financial market.
Financial market media can be divided into two categories:
One is the financial marketdealer , such as money brokers, securities brokerssecurities underwriter , foreign exchange brokers, etc.
A complete financial market should include four basic elements:
(1) Fund providers andFund demander。Including governments, financial institutions, enterprises and institutions, residents, foreign businessmen, etc., they can not only provide funds to the financial market, but also raise funds from the financial market.This is one of the ways in which the financial market has been formed and developedBasic factors。
(2) Credit instruments.This isBorrowing capitalThe object of trading in the financial market.Such as various bonds, stocks, notes, negotiable certificates of depositLoan contract、Mortgage contractIt is the subject that must be relied on to realize investment and financing activities in the financial market.
（3）Credit intermediary。This means that some intermediaries act as the intermediaries between the supply and demand of funds, playing the role of contact, media andValetTrading institutions, such as banks, investment companies, stock exchangesSecurities firmsAnd brokers, etc.
(4) Price.The price of the financial market refers to the value it represents, that is, the specified monetary capital and the interest rate it represents orYieldThe sum of.
Components
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Elements of financial market
（1） Participants in financial markets
——It refers to the unit that participates in the trading activities in the financial market and forms the buyers and sellers of securities.
The financial market is an important part of the unified market system and belongs to the factor market.It is closely related to the consumer goods marketMeans of productionMarket, labor market, technology marketinformation market、Real estate market, tourism service market and other markets are interconnected and interdependent to form a unified marketOrganic entirety。In the whole market system, the financial market is one of the most basic components, which is the link to other markets.Because inModern market economyMedium, whetherConsumer goods, the purchase and sale of means of production, or the flow of technology and labor force. All kinds of market transactions must be realized through the circulation of money and the movement of funds, which are inseparable from the close cooperation of the financial market.In this sense, the development of the financial market plays a decisive role in restricting the development of the whole market system, and the development of other markets in the market system provides conditions and possibilities for the development of the financial market.[3]
Market economy is a huge market entity composed of many different market places.staySocial productionDuring the process, each itemproduction factorsstayExchange processBoth of them constitute their ownMarket system。These markets are mainly:capital goods marketandlabour market, and the derivedConsumer goods market、market of labour services、technology market、Property market、cultural market、Manager MarketEtc.These markets, through the exchange of products, realize the normal progress of social production and consumption.All above productionFactor marketThe exchange ofeconomical operation Medium, not withBarter formIt is achieved through monetary media.Contemporary economy isMonetary economyandcredit economy, was created byMonetary creditAnd realizedmaterial resources The rapid configuration ofCredit fundsIt is a commodity.The funds are not onlyIndustrial sectorThe transmission reflects the attributes of its commodities, and is driven by the transaction medium - financial instrumentsFinancial productsThe sale of.Generally speaking, financial products areMonetary capitalOfpurchaserOr demanders, who obtain funds for investment, development of production and circulation, but for various purposes, different financial products will also trade with each other, so that crisscross financeCommodity circulation, forming a relatively independent market - financial market, which has also become an indispensable market of production factors, and an indispensable link to communicate various factor markets under the market economy.Marx believed that monetary capital iscapitalismDevelopmentalFirst driving forceAnd continuous power.Through this marketFinancingFunction, transfer funds from owners to demanders, realize the reallocation and optimal combination of funds, and give full play to the liquidity andBenefitTo drivecommodity marketDevelopment of.It can be seen that the financial market is an organic part of the whole market system.
financial market
2. Relationship between financial market and other markets Financial market is monetary capital or financeCommodity tradingIt is also a place for financing.It mainly carries outMoney lendingAnd various billssecurities, gold andForeign exchange tradingThe location of.Through the trading activities in the financial market, the relationship between the supply and demand of funds is communicated to achieve financing.The financial market has both connections and differences with other commodity markets.
(1) The links between the financial market and other markets are as follows: First, the financial market is a commodityMarket supplyThe medium of transaction, so that goodsExchange energyTo be carried out smoothly;Second, the financial market can be effectively promoted.The development of the commodity market promotes the development of the commodity market in the breadth of extension;Third, through the drive and adjustment of the financial market, the commodity market flows and combines, thus causing the reallocation of resources.
(2) The financial market differs from other markets in the following aspects: first, the trading place.General merchandiseThere is a fixed place for transactions tovisible market Dominant;The financial market has both tangible markets and, in a larger scope, telephone, telegraphtelex, computers and other communication toolsInvisible marketThis open and extensive market system can combine the supply and demand sides to the greatest extent.The second is the particularity of the trading partner.General commodity transactions areCommon goodsOr labor service, which has certain value anduse valueOnce traded, the trading object entering the consumption3 financial market is financial goods, whose value and use value have different determination methods: use value, the function of bringing benefits to its owners, and value, with multiple determination methods.The third is the particularity of the transaction mode.The transaction of general commodities shall follow the principle of exchange of equal value, and the transaction shall be ended through negotiation, transaction payment and delivery, and the two parties will no longer have any relationship;The transaction in the financial market is the establishment and transfer process of credit and investment relationship. After the transaction is completed, the relationship between the credit parties, the investment and financing parties has not ended, and there are also principal and interest payments andincome distributionEtc.It can be seen that although the transaction in the financial market, as a financial commodity, has ended, it has not ended as a credit or investment relationship.FourthTransaction motivationIs different.The sellers of general commodity transactions areRealize valueWhen money is obtained, the buyer meets the demand of consumption in order to obtain the use value;For the purpose of transactions in the financial market, the seller obtains the right to use financing, while the buyer obtains the right to invest and finance interest, control and other rights. In addition, various motives such as hedging and speculation are derived.
The movement of funds in the financial market has certainRegularityDue to the need to adjust the surplus and shortage of funds, funds always flow from the surplus regions and departments to the shortage regions and departments.Financial marketFund movementbe caused bySocial fundsOfrelation between supply and demand, the most basicfinancial instrumentsAnd the formation of monetary capital is formed by the bank issuing loans to enterprises after obtaining (purchasing) enterprise IOUs.As intermediaries, banks and other financial institutions represent the concentration of both lenders and borrowers. They are debtors to depositors and creditors to borrowers. Therefore, their financing isIndirect financing。When banks create a large number ofDerivative depositAfter, for othersCredit instrumentsThe creation and circulation of.When various financial instruments emerge and various forms of investment and financing are formed, the circulation track of financial instruments becomes complex, which can be as many times as moneyMedia currencyCapital movement and capital transaction are not completed in one time. The financial market has formed a relatively independent market.Financial instruments will move away from the original trading place repeatedly, and most of this movement is based onDirect financing instrumentsSuch as the realization of multiple circulation of stocks and bonds.suchDirect financingIt is a direct transaction between the supply and demand of funds, without the help of intermediaries, or just the centralized matchmaking of intermediaries.In addition, with the help ofagencyFinancial instruments issued to form financeCirculation market, represented by checks, bills of exchangePromissory noteCirculation andLoan securitizationCirculation of.Therefore, in the financial market, the sellers of financial instruments can be transformed into buyers, and the buyers of financial instruments can be transformed into sellers.In addition, the continuous influx of new trading partners promotes financial instrumentsCirculation and transfer；At the same time, the corresponding reverse flow of funds makes the financial market complicated.What is the scope of the financial market?Some people think that it only refers to the capital transaction and financing outside the bank, excluding the financing activities carried out by the bank.In fact, when the banks become market-orientedfinancial products Transactions are also transactions as commodities, even in the pastplanned economyIn the era, capital trading is only plannedCommodity trading。Therefore, it is obviously inappropriate to exclude banks, a large block of capital transactions, from the financial market.It can be said that the financial market is the sum of capital transactions promoted by various financial institutions and financial activities. It is a macro concept. As long as capital transactions are involved, financial markets are indispensable.[4]
specific characteristics
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Compared with other markets, the particularity of the financial market is mainly reflected in:
