This book provides a guide to 20 years of China's stock markets. Carl Walter and Fraser Howie analyze the changes that have occurred in all areas of China's securities industry including legal, regulatory, share structure, issuers, investor base, and market performance. These topics are examined in the context of the industry's overall development to highlight the market's current situation as China enters the new century.
Author(s): Carl E. Walter, Fraser T. J. Howie
Year: 2001
Language: English
Pages: 265
Cover......Page 1
Contents......Page 7
List of Figures and Charts......Page 10
List of Tables......Page 11
Preface......Page 14
List of Abbreviations......Page 18
1 To Get Rich is Glorious!......Page 21
2 Chinese Equity Securities......Page 41
2.1. 1983–88: The Spontaneous Development of Equity-like Securities......Page 44
2.2. 1989–90: 'Share-Fever' – Stocks can Appreciate in Value......Page 49
2.3. The State Reins the Market in......Page 51
2.4. Shares of What?......Page 52
2.5. The 'Standardized' Creation of a Shareholding Company......Page 56
2.6. Listed Company Shares......Page 66
2.7. The 1999 Securities Law......Page 69
3 The Impact of Share and Ownership Structure......Page 71
3.1 Companies with State Ownership of Less than 50 per cent......Page 72
3.2 Impact of Share Structure on the Value of State and Legal Person Shares......Page 81
3.3 Impact of Segmented Share Structure on Market Valuation......Page 85
4 China's Stock Exchanges......Page 91
4.1. 1979–88: Over the Counter Trading......Page 92
4.2. 1989–91: The Effort to Impose Order......Page 94
4.4. Original Organizational Structure of the Shanghai and Shenzhen Exchanges......Page 95
4.5. The 1993 Provisional Regulations for the Administration of Stock Exchanges......Page 97
4.6. The 1996 Regulations on the Administration of Stock Exchanges......Page 98
4.7. Securities Registration and Clearing Institutions......Page 100
4.8. The Growth of Exchange Membership......Page 101
4.9. Exchange Products Traded......Page 102
4.10. Other Trading Arrangements......Page 108
5 Market Regulatory Structure......Page 111
5.1 The PBOC as Securities Industry Regulator: 1986–92......Page 113
5.2 The CSRC as Securities Industry Regulator: 1992–present......Page 118
5.3 The Internationalization of the CSRC......Page 121
5.4 The CSRC's Domestic Development......Page 124
6 The Issuers and the Listing Process......Page 131
6.1 The Selection Process for Listing Candidates......Page 132
6.2 The Listing Approval Process......Page 134
6.3 Overview of Corporate Restructuring for International Listings......Page 137
6.4 A Case Study of International Listing Approvals......Page 145
6.5 Pricing......Page 149
6.6 Analysis of Listed Companies......Page 153
7 Investors and Other Market Participants......Page 163
7.1 Retail Investors......Page 164
7.3 Insurance Companies......Page 166
7.5 Securities Investment Funds......Page 169
7.6 Securities Companies and the Chinese Glass-Steagall Act......Page 180
7.7 Investor Base for Overseas Listed Chinese Shares and B Shares......Page 181
8.1 A Closed, Isolated System......Page 186
8.2 Market Cycles......Page 188
8.3 Funds Raised......Page 193
8.4 Market Capitalization and Liquidity......Page 200
8.5 Market Volatility......Page 203
8.6 A Second Look at Market Correlations......Page 207
8.7 Dividends......Page 209
8.8 Comparative Market Performance......Page 210
9 Summing Up and Looking Ahead......Page 215
Appendices......Page 224
Notes......Page 245
Select Bibliography......Page 259
F......Page 261
P......Page 262
W......Page 263
