Analysis of Existing Problems in Chinese A-share Market and Relevant Solutions

Abstract

China's A-shares have developed rapidly in recent years, with huge market volume and scale, and have become an important direction for corporate financing and mass investment. There are still many problems in the A-share market, which will affect the development of the A-share market. There is a problem of slow delisting in the A-share market, which will lead to bad enterprises not being cleared in time, and the frequency of market update is not enough, which needs to be alleviated by further improving the legal system and changing policies. Some sectors of the A-share market have the problem of downward market, resulting in financing difficulties for companies in these sectors and unable to develop normally. This problem can be fixed by increasing the proportion of companies that pay dividends to attract investors. Listed companies in the A-share market may also have goodwill problems, which will seriously affect investor confidence and reduce the amount of investment. It is necessary to improve the goodwill accounting policy, so that goodwill can be correctly measured and reflected. Finally, A-share market funds have the problem of homogeneity, which leads to vicious competition in a single sector and is unfriendly to small and medium-sized enterprises. The government can mitigate such problems by encouraging innovation and regulating the market, diversifying stock development. It is necessary to study the problems of the A-share market and give solutions of the existing problems, which can make the country, enterprises and investors have a more intuitive understanding of the market so they can make corresponding responses to market changes.