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China's Total Stock Market Value Account for 50% of GDP
According to the latest statistics, by the end of November, the total market value of shares listed on China's stock market has topped RMB 4.6 trillion, nearly accounting for 50 percent of China's GDP. More than 55million accounts have been opened for stock trading, and the number of listed companies reached 1063.
After10 years of development, China's securities market has possessed a certain scale. In 1991,China had only ten odd listed companies, the capital raised through share issuance was RMB1-2 billion, and the annual trading volume was several billion yuan. After ten years, the number of listed companies has topped one thousand, growing by nearly 100 times; the annual trading volume reached RMB 5 trillion, up 1000 times.
Since China began to adopt the opening policy in 1978, the joint stock system firstly emerged in the urban and rural collective enterprises. In November 1984, Shanghai Feile Acoustics Company was restructured into a joint stock company, becoming the first stock company in China to issue shares to the general public. On December 19, 1990, Shanghai Stock Exchange was opened to business, and on July 3, 1991, Shenzhen stock Exchange was established. The setting up of the two stock exchanges symbolized that China's stock market began to take shape.
In October 1992, the Chinese government decided to spread the experiment with stock issuance from Shanghai and Shenzhen to nationwide. One July 1, 1999, the Securities Law was put into effect, providing a legal basis for the further standardization of the operation of China's securities market and listed companies. China's securities market is developing rapidly and become an important part of China's socialist market economy.
Currently, China's securities market still keeps robust growth momentum, the intermediaries, including securities firms, fund management companies, investment consultant institutions, law firms and accountant firms are gradually getting mature. China now has 98 securities firms and more than 2600 securities sales departments. The trading and settlement network of Shanghai and Shenzhen stock exchanges has covered nationwide. The issuance and trading of shares have all been conducted electronically. The number of institutional investors in the stock market is increasing, and the open-end funds are ready to be launched. China's securities market is getting increasingly mature. (Panorama)
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