The Re-Emerging Securities Market in China

This work examines the re-emergence of a securities market in the People’s Republic of China, providing a comprehensive analysis of the market forces that are transforming China’s centrally planned economy. The authors provide answers to the key issues such as: Why did a securities market develop in China? How do market practices compare with those in other countries? What are the major difficulties encountered in the development process of the securities market, and what growth potential does the Chinese securities market have? Based on Dr Xia’s comprehensive survey of officials at Chinese securities issuing companies, government policy agencies, and stock exchange centres, the authors offer a report on the investment climate in China and its future. After reviewing briefly the emerging securities markets of other developing countries and the impact of the international debt crisis, the authors examine the economic reforms in China and their impact on China’s business climate. A discussion of financial sector developments, the regulatory framework and scope of the securities market, and a profile of market participants precedes an examination of the type and nature of bond and stock issuing activities. The operations of securities trading centres, including secondary markets and, in particular, the Shanghai Exchange, is explained in detail with the conclusion offering insights into the development prospects of these markets.