Implement Market innovation, Strengthen Enforcement and
Promote Standardization
Presented by vice chairman, Mr. Geng Liang
China Securities Regulatory Commission
12-13 March, 2001, Kuala Lumpur
International Backgrounds
• Global integration
• Cooperation between regulators
• Merger or alliance between exchanges
• Growth enterprise market
• On-line trading
By the end of 2000:
• Listed companies: 1088 domestic; 52 overseas; 145 in 2000
• Capitalization: RMB 4.8 trillion ( 1 USD = 8.3 RMB ), 50% GDP, 25%
• Investors accounts: 5.8 million
• Turnover: RMB 6 trillion, 91%
Market Statistics
Market Statistics (continued)
• Daily average turnover: 25.3 billion, 94%
• Composite index:
Shanghai: 2073, 51% ; Shenzhen: 635, 57%
• Max. Volatility:
Shanghai: 50% , Shenzhen: 57%
• Highlights: table market movement, increasing turnover and growing confidence.
Latest Developments
• Increasing direct financing scale
• Setting up securities investment funds
• Fostering On-line trading
• Preparing the establishment of Growth Enterprise Market
Latest Developments (continued)
• Strengthening enforcement
• Improving corporate governance
• Permitting B share trading by domestic residence
Strengthening regulation
• Reinforcing enforcement capability
• Strengthening penalty
• Enhancing investor education
• Studying and learning from overseas experiences
Going Marketization-- Deregulation
• Reducing administrative intervenes, playing by market rules
• while strengthening legislation, enforcement and investor education
Going Marketization-- Deregulation (continued)
Concrete measures have and about to take:
• Reform in stock issuance mode
• Reform in stock pricing mechanism
• Requirements of risk control management
• Implementing market innovation
• Further opening-up
Conclusion
• The Chinese securities market will continue to enjoy rapid developments
• It will gradually integrate into the world market
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