Download Implement Market innovation, Strengthen Enforcement and

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
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Global integration
Cooperation between regulators
Merger or alliance between exchanges
Growth enterprise market
On-line trading
Market Statistics
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 (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
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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
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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