2005年01月12日
  •        Why has the global capital market grown so rapidly in recent decades?Will this growth continue throu
  •     Dictionary of Business defines the capital market as a market in which long-term capital is raised by industry and commerce, the government, and local authorities. The money comes from private investors, insurance companies, pension funds, and banks and is usually arranged by issuing houses and merchant banks. Stock exchanges are also part of the capital market in that they provide a market for the shares and loan stocks that represent the capital once it has been raised. It is the presence and sophistication of their capital markets that distinguishes the industria l countries from the developing countries, in that this facility for raising industrial and commercial capital is either absent or rudimentary in the latter.
  • The global capital market has grown so rapidly in recent decades. So I would like to discuss about it in the essay.
  • This essay is organized as follow, introduction, body, conclusion. In the body part, Section 1 shows why has the global capital market grown so rapidly in recent decades. Section 2 talks about the continuance of the growth throughout the 2000s.
  • Body
  • 1. Why has the global capital market grown so rapidly in recent decades
  • In recent decades, the global capital market has grown so rapidly because of the rise of privatizations mainly. With private capital flows rising from less than 5 percent of world GDP in 1975 to about 20 percent today, privatizations have significantly increased market liquidity. And also privatization takes a potential role global capital market development.
  • A. The Rise of Capital Market-Based Finance
  • Capital market-based finance has in fact been increasing in importance, both absolutely and relative to financial intermediary-based finance, in both developed and developing countries over the past decade. And also capital markets are in fact winning the present and seem likely to dominate the future of corporate finance in developed and developing countries alike.
  • a. The Stable Role of Commercial Banking in Modern Economies
  • Ordinary “relationship banking” appears to be (at best) holding its own as a source of corporate financing around the world, and is more likely in decline. The bits of banking that are growing rapidly are those parts that provide high value-added products (especially risk management tools) and provide large-scale syndicated credits to corporate borrowers. During the late-1980s and early-1990s, when Japan and Germany appeared to be outperforming major capital market-oriented countries such as Britain and the US, the academic literature often favored bank-based systems. Examples of& nbsp;this literature include Prowse (1992), Kester (1992), and Porter (1992), while the supporting arguments are summarized in Maher and Andersson (1999) and Tsuru (2000). More recently, however, the weight of opinion has swung strongly in favor of the idea that capital markets have decisive comparative advantages over banks and other financial intermediaries as optimal monitors and financiers of a nation’s corporate life. This reassessment has been driven in part by the observation, discussed at length above, that capital markets have been prospering relative to banks for many  ;years now. The repetitive nature–and massive costs–of banking crises in developing and developed countries alike has also convinced many observers that banks are inherently fragile institutions, whose role in corporate finance should be minimized as much and as quickly as possible (Economist (1997, 1999)).
  • b. The Rapid Growth in Stock Market Capitalization and Trading Volume Since 1983
  • From 1983 to 2000, this was a period of very rapid growth in the capitalization of markets in every country except Japan. Total world market capitalization increased over ten-fold (to $ 35.0 trillion) between 1983 and 1999, and the total capitalization of the US market increased almost nine-fold (from $ 1.9 trillion to $ 16.6 trillion) over the same period.
  • c. The Dramatic Growth in Securities Issuance Volume Since 1990
  • Another way of measuring the rise of capital markets is to examine whether their share of annual corporate financing activity has grown relative to that of other sources of funding. Security offerings by US issuers accounted for two-thirds of the global total throughout 1990-1999, that implies that non-US securities issues in creased from $ 191 billion in 1990 to $ 750 billion in 1998, and then to $ 1.19 trillion in 1999. The surge in non-US issuance volume in 1999 was largely due to the popularity of euro-denominated bond issues, which actually exceeded&n bsp;dollar-denominated bond issues for much of 1999.
  • d. The Phenomenal Growth in Venture Capital Financing in the United States
  • One highly specialized, but extremely important type of financing has also grown very rapidly over the past decade, and especially so since 1997. This is venture capital investment by US venture capital partnerships. The fund-raising patterns of these private equity investors are discussed in Gompers and Lerner (1998), and the competitive advantages of US venture capitalists versus those in other developed countries are described in Black and Gilson (1998).
  • e. The Surge in Mergers and Acquisitions Worldwide
  • The almost incredible increase in the total volume of merger and acquisition activity that has occurred since 1990. While takeovers have always played an important role in the United States, the rise in M&A (Merger and Acquisition) activity in Europe during the 1990s was even more dramatic. From less than $ 50 billion annually in the late-1980s, the total value of M&A involving a European target reached $ 592 billion in 1998, before more than doubling to $ 1.22 trillion in 1999–rivaling the US total. The global value of M&A activity in 1999 reached&n bsp;$ 3.4 trillion, an astounding 10% of world GDP.
    Next I will document that share issue privatizations have truly transformed share ownership patterns of investors in many different countries.
  • B. Privatization’s Impact on Stock and Bond Market Development
  • We should be careful in inferring causation regarding privatization’s impact on market growth, since a shift in ideology or some other exogenous political or economic change might have caused both the privatization and the overall boom.
  • a. Total Proceeds Raised by Privatization Programs
  • It is clear that national governments have been among the biggest winners from privatization programs, since these have dramatically increased government revenues, which is clearly one reason the policy has spread so rapidly. As mentioned above, Privatisation International [Gibbon (1998, 2000)] reports that the cumulative value of proceeds raised by privatizing governments exceeded $ 1 trillion sometime during the second half of 1999. As an added benefit, this revenue has come to governments without having to raise taxes or cut other public services.
  • b. Privatization’s Impact on International Investment Banking
  • All international investment banks compete fiercely for share issue privatization mandates, for two principal reasons. First, because the offerings are so large and so visible–and are almost always designed to help promote the market’s capacity to absorb subsequent stock offerings by private companies–these are very prestigious mandates. To date, the large US and British brokerage houses have had the most success in winning advisory and underwriting mandates, though all countries that launch large-scale SIP programs tend to favor local investment banks as “national champions” to& nbsp;handle the domestic share tranche. The second reason banks compete so fiercely for SIP mandates is because they can be extremely profitable. In spite of the fact–documented by Jones, et al (1999) and Ljungqvist, et al (2000)–that SIPs have significantly lower underwriting spreads than private sector offerings, their sheer size and lack of downside price risk make them very lucrative for underwriters.

  • 2. Will this growth continue throughout the 2000s?
  • As we indicated above, the global capital market has grown so rapidly in recent decades cause of the privatizations rise. Privatizations increased the market liquidity. Now we have already stepped into the 21st century. I believe that the growth will continue for the following reasons. First, most of the south-east Asia countries have recovered from the 1997 financial crisis. For these countries, they now have the capital to do businesses. And they get back on the fast growing track. Second, by the end of 2001, world’s biggest developing country, China, has  ;entered the WTO (World Trade Organization). This is real great news. As we all know, today’s China takes a serious position in world’s economy. Its innovation and opening policy make china keep achieving high GDP growth rate. This drives the global capital market keep growing.
  • Summary and Conclusions
  • This essay examines the impact of share issue privatizations (SIPs) on the growth of world capital markets (especially stock markets). I begin by documenting the increasing importance of capital markets, and the declining role of commercial banks, in corporate financial systems around the world. I then show that privatization programs– particularly those involving public share offerings–have had a dramatic impact both on the development of non-US stock markets and on the participation of individual and institutional investors in those stock markets.
  • This has told the reason of the fast growth of global capital market. And then I succinctly indicated the continuance of the rapid growth, the great future.
  • The last but not the least is the recommendation. I can confidently assert that, if executed properly, a series of share issue privatizations can indeed promote the growth of global capital market, which will yield economic and political dividends for many years to come. That means there is a need to encourage the development of SIPs in order to gain growth of global capital market.
  • References
  • Dictionary of Business, Oxford University Press, ? Market House Books Ltd 1996
  • The Economist (April 12, 1997), “Fragile, Handle With Care: A Survey of Banking In Emerging Markets.”
  • The Economist (April 17, 1999), “On A Wing and A Prayer: A Survey of International Banking.”
  • Gibbon, H., 1998, “Worldwide Economic Orthodoxy,” Privatisation International 123, 4-5.
  • Gibbon, H., 2000, “Editor’s Letter,” Privatisation Yearbook, London, Thomson Financial, 1.
  • Gompers, P. and J. Lerner, 1998, “What Drives Venture Capital Fundraising?” Brookings Papers On Economic Activity–Microeconomics, 149-192.
  • Jones, S.L., W.L. Megginson, R.C. Nash, and J.M. Netter, 1999, “Share Issue Privatizations As Financial Means To Political and Economic Ends,” Journal of Financial Economics 53(2), 217-253
  • Kester, W.C., 1992, “Governance, Contracting and Investment Horizons,” Journal of Applied Corporate Finance 5(2), 83-98.
  • Ljungqvist, A.P., T. Jenkinson and W.J. Wilhelm, Jr., 2000, “Has the Introduction of Bookbuilding Increased the Efficiency of International IPOs?” New York University Working Paper.
  • Maher, M. and T. Andersson, 1999, “Corporate Performance: Effects On Firm Performance and Economic Growth,” OECD Working Paper (Paris).
  • Prowse, S., 1992, “The Structure of Corporate Ownership in Japan,” Journal of Finance 47(3), 1121-1140.
  • Porter, M.E., 1992, “Capital Choices: Changing the Way America Invests in Industry,” Journal of Applied Corporate Finance 5(2), 4-16.
  • Tsuru, K., 2000, “Finance and Growth, Some Theoretical Considerations and A Review of the Empirical Literature,” OECD Working Paper Series, No 228.
  • data from the Statistics section of the International Federation of Stock Exchange’s website .
  •                            The Use of Body Language in Middle Schools

  • Author: Zhnag Lei Supervisor: Dong Chunzhi
    Foreign Language Department
    Hankou Branch of Huazhong University of Science and Technology
  • 【Thesis】: With the continual reform of language teaching and learning methods, teachers are in great demand to organize the classes in English and create English-learning circumstances. However, with the limitation of students’ vocabulary, teachers have to simplify their teaching language with the help of facial expressions and body movements. In this article, the possibility and the effect of using body language in listening, speaking, reading and writing will be further discussed.
    【Key words】: English teaching in middle schools, body language
    I. Introduction
    As everyone knows, the classroom teaching is one of the most important ways that the students learn English. As far as the English teaching in the middle schools is concerned, teachers have to arouse the students’ interest so that they may learn better. There are many ways to arouse the students’ interest and help them to learn better, body language used in English teaching is one of them.
    Body language is an important media through which people communicate with each other. It refers to the patterns of facial expressions and gestures that people use to express their feelings in communication. The specialist on body language research, Fen. Lafle. Angles, once said: “Once it was lost, a baby couldn’t have grown into a normal person”. It’s also true to the juveniles. In school education, body language plays a positive role in cultivating the students’ characters. For, teachers are usually respected, and factually, what or how the teachers say  and do will be possibly imitated by the students (sometimes subconsciously). In a word, teachers’ graceful body language helps to improve the students’ artistic-appreciation and moral character. If the students develop a wonderful body language, which will possibly leads them to form an optimistic and active feelings, they will surely have a more smooth interpersonal relation.
    The affection of teachers’ body language on the students is reflected not only by establishing a good example, but also shortening the teacher-student estrangement by which a more harmonious studying atmosphere is created. As a matter of fact, teachers’ friendly appearance can greatly encourage the students’ studying enthusiasm. Furthermore, the characteristics of theoretic and abstraction of knowledge also requires the vivid, dramatic and an accessible gestures to make it specific and figurative. As a result, the students’ interest is motivated and the effect of teaching is  greatly improved.
  • II. The necessity and importance of using body language in English teaching
    English teaching is a key part of the school education. With the English teaching methods reform, more and more English teachers organize the teaching process in English so that they may realize the Communicated English. The Communicated English means that teachers instruct the students and explain questions basically in English, and the students are also required to use English in class. Contemporarily, however, the students in the middle school can’t speak very well; neither can they understand why they should use different tones in different time or situation; their&nb sp;vocabulary and expressive ability are limited too. These limitations made it difficult to realize the Communicated English in the classes. According to the students’ present level and practical situation, body language is required. For example, when a teacher gives an instruction: “You two, please come to the blackboard.” The students can easily understand it if the teacher looks at (or points to) some two students. Then, the teacher points to the blackboard. The students will carry out the order without obstacle even if they don’t hear the key words  “blackboard” clearly. Furthermore, teachers usually have to explain some language points, and at this time, they have to differentiate the classroom expressions and the examples. Take it for example, we ought to use the form ‘have done’ such as ‘Have you finished that job jet?’” To make the students understand clearly, a teacher has lots of ways. To do it by speed, he uses a common speed when reading “we ought to use the form ‘have done’”, and reads slowly when giving examples; he can also get the effect by repeating&n bsp;the example ‘Have you finished that job jet’; a more frequent way is to use gestures to lay emphasis on the key points when he said “have done”(emphasizing it in voice at the same time), he reaches out his index finger, pauses in the air, and then gives out the example. This action will usually give the students a deep impression. From the above we can learn, the use of body language in English teaching is necessary and practical. In the English teaching in middle schools, body language is frequently used to improve the teach ing effect and the students’ ability.
  • III. The concrete application of the body language in listening, speaking, reading and writing
    1. Body language helps to improve listening
    The Greek philosopher Epictetus ever wittily said: “Nature has given man one tongue and two ears that he may hear twice as much as he speaks.” From the saying we can learn how important the listening is in our daily life. To understand others is a basic purpose in English teaching, and teachers often train the students’ listening accordingly. In this process, if the body language is used, the effect will be better. When beginning a new lesson, the teacher narrates the story outline in English. The body language may help. For example, a&n bsp;teacher can stretch his arms slowly when he says “She is in a very big room”; he can open his eyes widely with mouth opened when he says “She is so beautiful a lady”. As a result, the students will have such an impression: She is very beautiful indeed; a teacher who imitates the crying or the movement of the animals under the premise of teaching order will surely achieve a better effect.
    2. Body language helps to improve speaking
    The spoken language is one of the important ways to communicate, so we should try to develop the students’ ability of speaking. Factually they are helped to reach the aim in a certain degree by their teacher’s body language.
    The contemporary emphasis is gradually laid on spoken English teaching. The first lesson of every unit in Senior English begins with dialogue. The teaching programs require the teachers to organize the class to practice English according to the characteristics of dialogue. Generally speaking, the body language can arouse and sustain the students’ interest of learning and using English. In the English class, the teachers should not only use body languages themselves, but also ask the students to use them according to the different situation. Take it for example, the f irst lesson in Unit one, Book one is about the time when the new students first meet, and they don’t know each other. So a teacher can introduce himself first, such as: “Hello, everyone, nice to meet you here. Now I’ll introduce myself to you. My name is Arthur. I like playing basketball, for, it makes me much stronger; I like playing chess, for, it makes me more clever; and I like reading books, for, ‘reading makes one perfect’”. During the introduction, the teacher should use the new vocabularies and sentence structures together& nbsp;with a vivid expression and mating gestures as possibly as he can. He smiles when he says hello to the class; he shakes hands with some students saying “Nice to meet you”; he writes name down on the blackboard; he imitates the action of dribbling and shooting at the basketball, playing chess and turning pages to explain his hobby. After his introduction, the teacher can create a circumstance for the students to practice: “Mary and Jack are new classmates. They are walking together in the street, and they meet one of Jack’s old f riends, Yangpei. Then Yangpei and Mary are introduced to each other by Jack.” After the students’ practice the dialogue is introduced naturally from it. Usually, the application of body language in different situations will result in an attracting and successful lesson.
    3. Body language helps to improve reading
    The purpose of Senior English teaching is to train the students’ preliminary ability of using spoken and written English. In the senior school, we lay emphasis one the reading ability that serves the students’ further study. Here we mainly mention the helpfulness for reading aloud(朗读). Reading aloud helps the students to get a correct pronunciation and intonation and to develop the combination of vocabularies’ pronunciation, spelling and meaning. Furthermore it also helps the students to find out the article’s internal feelings and appreciate the beauty of the la nguage. A linguist ever said: “A poem is not a poem until it is read.” Reading aloud is basic in the middle school, and the teachers should make full use of body language to develop the students’ ability of reading aloud.
    When reading the sentences, attention should be paid to where to speak softly, emphasize, and raise or lower our tone. To make it clear, we can imitate the strong or soft pats that are used in music teaching, which means to use the arcs to represent different tones. Generally speaking, we use falling tones in declarative and special interrogative sentence, first rising tones and then falling tones in the choosing interrogative sentence. The students in the middle school are not often accustomed to and always confuse them, however, with the help of body&nbs p;language, they can solve the problem much more easily. For example, they use gestures. As they read the choosing interrogative sentence, they raise their hands in rising tones and lower in falling tones. After training for some times, as soon as they read the sentences, they will remind themselves of the gestures. As a result, there will be no problems in rightly reading the sentences at all.
    In a word, the vivid gesture together with the fluent English can create a good circumstance of learning, which will surely play an active part in improving the students’ reading ability.
    4. Body language helps to improve writing.
    Writing is one of the four basic skills of learning language, and it is so important a skill that we can even say without it, people can’t communicate with others. Not only should the students get some English knowledge and vocabularies, but also the ability to communicate in spoken and written English as what is mentioned in the teaching programs. To some extent, writing is much more important than speaking, for it can spread without the limitation of space and time. Since the students learn English as a media for communication, they should have& nbsp;the ability of writing.
    To get rid of the students’ feelings of being dull and tiring, an English teacher has to use every possible method. This is the same to the writing. Teachers use different method in order to improve the students’ ability of writing, among which, the application of body language can deepen the object impression, such is magnificent in developing the students’ writing ability.
    The linguist Franklin ever said, “Tell me, I’ll forget; teach me, I’ll remember; involve me and I’ll learn.” If we asked the students to write an unfamiliar composition, they would probably be unable to and feel discouraged. However, the students can write excellent articles if they have the experience. In and out of class, we should ask the students to participate some English-related activities, and then ask them to write it down. Take “The First Snow in Winter” for example, having enjoyed themselves in the beautiful snowing and been giv en some hints, the students can write much better a composition. For contrast to their complete imagination, the students are deeply impressed by the body movement of the teachers and themselves, which surely leads to a better article.
  • IV. Conclusion
    Learning English needs practice. The 45 minutes in class is very precious and should be cherished, during which the students should practice as much as possible. To exert the limited time, teachers are required to adopt some effective methods. The use of body language can not only attract the students’ attention, but also deepen their impression and imagination. The use of body language is completely up to the standard of audio-visual teaching principle, so teachers should try to teach in English from the beginning to the end, together with the corresponding&nbs p;body language. In the end, the students’ ability of English will be certainly and greatly improved.
  • Bibliography:
    1. He Guangkeng, The Basis of English Teaching and Learning Methods, Ji Nan University Press, 1999
    2. Shen Minxian, The Use of the Body Language in Elementary School, Shanghai Education Vol. 12, 1999
    3. Gu Xueliang, The Basic Technical Training in English Teaching, Hangzhou University Press, 1998.
    4. Hu Chundiao, The English Teaching and Learning Methods, Higher Education Press, 1990
    5. Liu Yongfa, Liu Xuan’en, The Practical Body Language, Hua Wen Press, 1997
    6. Wu Zongjie, Readings for Applied Linguistics and Language Teaching, Zhejiang Teachers’ University, 1998