Sunday, November 05, 2000, updated at 10:59(GMT+8)
Business
SSE Official: It is of Significance to Foster Institutional Investors
It is necessary to devote more energy to the cultivation of institutional investors to promote the development of the stock market and meet the challenges brought by China's WTO entry, Zhao Xiaoping, director of the Information Center of Shanghai Stock Exchange, noted Thursday at the International Fund Manager Forum.
Zhao said the WTO entry will further promote the opening of China's securities market. According to the pledges China has made in the WTO-entry negotiations, China's capital market will open to the foreign investors step by step. Once placed in an opening environment, China's stock market, which are mainly made up of retail investors, will not keep stable, as the anti-risk ability of retail investors is very weak. Therefore, it is an very important task to cultivated institutional investors.
Zhao said a series of questions should also be paid attention in developing institutional investors. We should encourage financial innovations, respect the independent innovation abilities of the market, develop all kinds of new varieties, speed up the reform of the governance structure and management system of the property of institutional investors, and strengthen the supervision over institutional investors by the owners of securities firms, the investors of fund beneficiary vouchers, investors of insurance companies and the consignors of pension funds, etc, to achieve development of institutional investors in scale, quantity and quality simultaneously. (Panorama)
It is necessary to devote more energy to the cultivation of institutional investors to promote the development of the stock market and meet the challenges brought by China's WTO entry, Zhao Xiaoping, director of the Information Center of Shanghai Stock Exchange, noted Thursday at the International Fund Manager Forum.