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Three Driving Forces for China's Capital Market Development
Chief Consultant of China Securities Regulatory Commission Liang Dingbang Wednesday said that there are three driving forces boosting China's capital market. He said this at the on-going 2000 China Investment Forum in Shanghai.
Liang spelled out the three driving forces as deepening the pension reform, the rapid development of private economies and the impending accession to the WTO.
Liang elaborated on the profound influence of the pension reform on the capital market. He said, as an effective source of fund for the pension market, the issuance of bonds and the sales of State-owned assets are accepted as a good choice. In the future, there is no need for the government to hold 70 percent of the stock right to keep its control force. In the end only some companies of the strategic trade will be placed under the complete control of the State.
The daily growing private economies represent another motive force boosting the development of China's capital market, with more and more of them entering into the "second board" market, this will help solve the long-standing fund-raising problem. The swift development of the private economies can also expedite the development of risk capital.
As regards the influence exerted by WTO entry on China's capital market, Liang held that apart from intensifying competition and enhancing transparency, it will help the Chinese capital market to gain more opportunities for contacts with global outstanding personnel and bring closer ties with the global capital market, and form an environment for market competition at the same level.
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