Evaluate the Resource Allocation Efficiency of China’s Multi-layer Capital Market

GENG Xiao-yuan （College of Economics and Management，Heilongjiang Bayi Agricultural University，Daqing 163319，Heilongjiang，China）

Abstract：By extending the connotation of resource allocation efficiency appropriately ，starting with multiple levels and dual connotations，taking the entire process of capital circulation as an entry point ，and with the help of Jeffrey- Wurgler model，the author explores the allocation efficiency of China’s multi- layer capital market from 2010 to 2019 under the dual- connotation concept from different dimensions. The author also uses unbalanced panel data model to measure the level of resource allocation efficiency，and conducts a horizontal comparative analysis and a vertical trend analysis about the allocation efficiency of China ’s multi- layer capital market. The results show that ：（1）comparing to the SME board and GEM board，the resource allocation efficiency of the main board is relatively lower ；（2）regardless of whether it was the main board，the SME board，or the GEM board，the resource allocation efficiency during the study period exceeded 0.5 in most years；and（3）the resource allocation efficiency has shown an obvious upward trend，which indicates that the management mechanism of the multi-layer capital market has become more and more mature and sound in recent years，especially in terms of reasonable investment. To speed up the construction of China’s emerging capital market，we should ensure the quality of listed companies，enhance the support for technological and innovative enterprises，promote the development of emerging capital markets such as the Growth Enterprise Market，and improve the multi- layer capital market system. We should also formulate different related regulations and mechanisms for capital markets in different layers and with different risk characteristics ，better realize the function of capital markets in different layers，and improve the resource allocation efficiency of China’s multi-layer capital market.

Key words：multi-layer capital market；resource allocation efficiency；Jeffrey-Wurgler model；unbalanced panel data model