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Official: Chinese Stock Market in Normal Development
Zhou Xiaochuan, chairman of the China Securities Regulatory Commission (CSRC) said at the "Tsinghua University Summit of Enterprises in New Century" held on January 8 that the overall level of Chinese stocks saw a big rise last year, which is, on the whole, an expression of the supply-demand relations. In the future, some comparatively large and medium-sized enterprises will raise funds at home so as to expand the total capital volume of the Chinese securities market.
He noted that not all the enterprises are demanders of capital despite their great number. Although no listing quota and index will be set in the future, only those enterprises which have completed shareholding system reform and have met the conditions for accounting quality are qualified to raise funds on the securities market. Because of this, although CSRC approved up to 100 listed enterprises last year, there was no big increase in aggregate.
The general price level of the Chinese securities market last year rose by a big margin due to the following factors: the slow growth of qualified capital demand, including the incomplete operation of the bond market (enterprise bonds included) and the flow of huge amounts of capital into the stock market owning to continuous lowering of deposit interest rate by banks.
Zhou pointed out it's only natural for the Chinese stock market, as a newborn thing, to see abnormal development in its early stage, but in the future, this market will still face vast space for development.
He also said that since the social security funds and the gigantic insurance industry have just begun their involvement in the securities market, the Chinese stock market will possess greater absorption capacity and will become more active along with the emergence of open funds.
By PD Online staff member Deng Gang
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