Fan Gang: China Lacks "Three Major" Market AccessoriesFan Gang, economist and director of State Economy Research Institute of All-China Economy Research Fund lately pointed out that China's capital market falls short of "three major accessories" to date. "It would be totally unrealistic for us to think about a capital market to be developed to the exclusion of all problems, risks and conflicts in today's China," he said.Fan Gang gave his view about the "three major accessories" at the "New Century Entrepreneurs Summit" recently held on the campus of Qinghua University. Of the "three major accessories", China first finds no "malicious purchasing" as there is not a force to make most of poor management, problems and price falls on the securities market to push with the effort for effecting direct control, manipulation, purchasing and final market retooling. Since heavy selling of securities moves no one's heart in the managerial sector, potent risks and threat from "malicious purchasing" will naturally force efforts for improved operations and increased economic returns and profits. Accordingly, there will be no increased economic gains or profits to speak of when a capital market should be short of "the intention to kill" or "sanguinity" needed. China is at present in a state short of small securities market operations or a type of "deals outside market operations". Fan Gang pointed out that under a market-oriented economy as in many foreign countries with a market economy developed people have lots of estate deals conducted "outside market operations". There are even also a great many of stocks and securities to be dealt in the way of "counter deals" or "dealings outside market operations". China, at present and during a time in the future, is and will face the main and the biggest problem of doing a good job of reforming its ill-performed small types of state-owned and collective-owned enterprises. There will be no way for like enterprises to get listed when should China still merely conduct deals under a large securities market system. Fan Gang further emphatically pointed out that capital market should have deals at a "varied layer". "Big Plazas" are indispensable. "Small booths" will likewise be needed. As things are seen in China, with SOEs in process of reform and development, greater emphases should be laid on "small local" securities market operations. There is no need to say these can also be run in a fair and orderly manner as an organic component part to those of the national and run moreover under a national operational network. Fan Gang finally pointed out that China's capital market still suffers from a short supply of standardized non-securities investment funds as intermediates to bring a multitude of small capital holders into contacts with the capital market. Small stockholders can use their funds to buy stocks in a multitude of ways. Only when the intermediary role of investment should be brought into the fullest play can a concentration of capital be had and great amounts of these used for direct deals of non-security purchasing to bring a booming capital market in China. By PD Online staff member Zhou Yicheng |
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