2016/10/12 Early Stage: 19801990 Early Stage: 1980-1990 The first day of Trading(September 26th, 1986)for Feile and On Nov. 14th, 1986, Mr Deng Xiaoping gave Mr John Phelan, Yanzhong in ICBC Jingan Security Department president of NYSE, a share of Feile Acoustics stock as a gift. Early Stage: 19801990 Shanghai Composite Index (199012-2016.2) Stock Trading and Security Companies Sept 26th 1986, Feile Acoustics and Yanzhong stocks traded in ICBC Jingan Security Department. Shenzhen Security Company was established based on 12 financial institutions in Sept. 1987 with the approval from PBoc In 1988, 3 security firms established in Shanghai 5 stocks traded in Shenzhen in 12 security companies by 1990 门2/199//1496/0990112/1叫427/2410/2/712/1/15/8/10 The OTC market for stock trading established. Second Stage: 1991"1998 Second Stage: 1991 1998 Nov. Dec 1990: Shanghai Stock Exchange(SSE) established and started to operate Dec 1990: Computerized trading system SATQ (System of Automated Trading and Quoting) adopted Oct 1992: CSRC was established Apr 1993: " Tentative Rules on Security Issuing and Transaction"released 6
2016/10/12 6 3-31 Early Stage: 1980~1990 The first day of Trading (September 26th,1986) for Feile and Yanzhong in ICBC Jingan Security Department 3-32 Early Stage: 1980~1990 On Nov.14th, 1986, Mr. Deng Xiaoping gave Mr. John Phelan, president of NYSE, a share of Feile Acoustics stock as a gift. 3-33 Early Stage: 1980~1990 • Stock Trading and Security Companies – Sept.26th 1986, Feile Acoustics and Yanzhong stocks traded in ICBC Jingan Security Department. – Shenzhen Security Company was established based on 12 financial institutions in Sept.1987 with the approval from PBoC – In 1988, 3 security firms established in Shanghai. – 5 stocks traded in Shenzhen in 12 security companies by 1990 – The OTC market for stock trading established. . Shanghai Composite Index (1990.12-2016.2) 0 1000 2000 3000 4000 5000 6000 90/12/19 93/9/14 96/6/10 99/3/7 01/12/1 04/8/27 07/5/24 10/2/17 12/11/13 15/8/10 3-34 3-35 Second Stage: 1991~1998 • Nov.~Dec. 1990: Shanghai Stock Exchange (SSE) established and started to operate • Dec. 1990: Computerized trading system SATQ (System of Automated Trading and Quoting) adopted • Oct.1992: CSRC was established. • Apr.1993: “Tentative Rules on Security Issuing and Transaction” released 3-36 Second Stage: 1991~1998
2016/10/12 Second Stage: 1991"1998 Second Stage: 1991"1998 B shares was set up in 1992 traded in US dollars on SSe and in hK dollars on SZSE Individuals and legal persons in the prc were only allowed to buy and sell A shares, while foreigners and residents of Hong Kong, Macau, and Taiwan could only buy and sell B shares en to pRc residents No new b shares issued since 2003 as more firms Second stage: 1991 1998 Second Stage: 1991 1998 No. of listed B shares Market Development 1993-1998 (in Billion Yuan 「a过=过4 [99 85s 10.79 348d 1757 Second Stage: 1991"1998 Second Stage: 1991 1998 Limit-up and Limit-down in SSE Limit-up and Limit-down in SZSE B9s290 Bn25199 6Novl8.990 bec. 14.- a.1, 1991 eb8№y20.192 n2199|JAu6191 992Dec15,996 bec. 16. 1996-present 6.1996-presen 7
2016/10/12 7 3-37 Second Stage: 1991~1998 • B shares market – B shares was set up in 1992, traded in US dollars on SSE and in HK dollars on SZSE. – Individuals and legal persons in the PRC were only allowed to buy and sell A shares, while foreigners and residents of Hong Kong, Macau, and Taiwan, could only buy and sell B shares. – From February 19th 2001, B shares market became open to PRC residents. – No new B shares issued since 2003 as more firms went listed in overseas stock markets. Second Stage: 1991~1998 • No. of A shares listed 3-38 Second Stage: 1991~1998 • No. of listed B shares 3-39 0 9 21 33 35 41 43 51 1 9 19 24 34 43 51 54 0 10 20 30 40 50 60 1991 1992 1993 1994 1995 1996 1997 1998 SSE SZSE Second Stage: 1991~1998 Financing With A shares Financing with B shares No. Of Investors (million) Total Market Cap. Market Cap. Of Tradable Shares Market Turnover Market Cap. as % of GDP 1993 27.64 3.81 8.35 354.15 86.16 362.72 10.20% 1994 9.98 3.83 11.08 369.06 96.89 812.76 7.98% 1995 8.55 3.34 12.94 347.43 93.82 403.65 5.94% 1996 29.43 4.72 24.22 984.24 286.70 2133.20 14.50% 1997 82.59 10.79 34.80 1752.90 520.44 3072.18 23.44% 1998 77.80 2.56 42.60 1952.18 574.54 2352.73 23.13% 3-40 Market Development 1993-1998 (in Billion Yuan) Second Stage: 1991~1998 • Limit-up and Limit-down in SSE *Different limit-ups and –downs to stocks. “5.21” soaring up 3-41 Duration Limit-up Limit-down Nov.26-Dec.18, 1990 3% 3% Dec.19-Dec 26, 1990 5% 5% Dec.27-Dec.30, 1990 1% 1% Dec.31,1990-Apr. 25, 1991 0.50% 0.50% Apr.26-Feb.17, 1992 1% 1% Feb. 18-May 20, 1992 1%-5%* 1%-5%* May 21, 1992-Dec 15,1996 None None Dec.16, 1996-present 10% 10% 3-42 Second Stage: 1991~1998 • Limit-up and Limit-down in SZSE Duration Limit-up Limit-down May 29-June 17, 1990 10% 10% June 18-June 25, 1990 5% 5% June 26-Nov. 18, 1990 1% 5% Nov.19-Dec.13, 1990 0.50% 5% Dec.14,1990-Jan.1, 1991 0.50% 1% Jan.2, 1991-Aug.16, 1991 0.50% 0.50% Aug.17,1991-Dec. 15, 1996 None None Dec.16, 1996-present 10% 10%