中国证券监督管理委员会 CHINA SECURITIES REGULATORY COMMISSION Non-tradable Share Reform in Chinas Capital Markets Qi Bin Director Research Center China Securities Regulatory Commission Feb.2007 Hanoi FOR INTERNAL USE ONLY- No portion of this communication may be reproduced or redistributed
FOR INTERNAL USE ONLY – No portion of this communication may be reproduced or redistributed. Qi Bin Director, Research Center Director, Research Center China Securities Regulatory Commission China Securities Regulatory Commission Non-tradable Share Reform in China’s Capital Markets Feb., 2007 Feb., 2007 Hanoi
Agenda Non-tradable Share Reform in Chinese Capital markets 1. Chinese Capital Markets 2. Non-tradable share reform 3. Parallel Reforms of chinese capital markets 4. Challenges and initiatives OR INTERNAL USE ONLY this communication may be reproduced or redistributed ② 中国证券监督管理委员会 CHINA SECUIRITIES E ATDRYCD
FOR INTERNAL USE ONLY – No portion of this communication may be reproduced or redistributed. Non-tradable Share Reform in Chinese Capital markets Agenda 1. Chinese Capital Markets 2. Non-tradable Share Reform 3. Parallel Reforms of Chinese Capital Markets 4. Challenges and Initiatives
1. Chinese Capital Markets Non-tradable Share Reform in Chinese Capital markets 1990-Shanghai Stock Exchange opened 1991-Shenzhen Stock Exchange opened 1992 -The first B shares were issued to foreign investors 992-CSRC was established 1993-The first H-share company(Tsingtao Brewery) was listed in HK 1993-Company Law was promulgated 1998- The first securities investment fund was launched 1998- Securities Law was passed by the Congress 2001-Domestic investors were allowed to invest in b shares 2002-QFll scheme started off 2003-Securities Investment Fund Law was promulgated 2004-State Council's Instructions Regarding Advancing Reform, Opening and Stable Development of Capital Markets released 2004-The Small Medium Enterprises Board was launched 2005-Notices about Questions Related to the Listing of Non-tradable Shares was issued by the CSRC 2005-Revised Securities Law and Company law were passed by the congress 199019911992199319941995199619971981999200020012002200320042005 Starting off Expansi Clean-up Regulation, Standardization Internationalization OR INTERNAL USE ONLY this communication may be reproduced or redistributed ② 中国证券监督管理委员会 CHINA SECUIRITIES E ATDRYCD
FOR INTERNAL USE ONLY – No portion of this communication may be reproduced or redistributed. Non-tradable Share Reform in Chinese Capital markets 1. Chinese Capital Markets 1. Chinese Capital Markets 1990 - Shanghai Stock Exchange opened 1991 - Shenzhen Stock Exchange opened 1992 - The first B shares were issued to foreign investors 1992 - CSRC was established 1993 - The first H-share company (Tsingtao Brewery) was listed in HK 1993 - Company Law was promulgated 1998 - The first securities investment fund was launched 1998 - Securities Law was passed by the Congress 2001 - Domestic investors were allowed to invest in B shares 2002 - QFII scheme started off 2003 - Securities Investment Fund Law was promulgated 2004 - State Council's Instructions Regarding Advancing Reform, Opening and Stable Development of Capital Markets released 2004 - The Small & Medium Enterprises Board was launched 2005 - Notices about Questions Related to the Listing of Non-tradable Shares was issued by the CSRC 2005 - Revised Securities Law and Company Law were passed by the Congress 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Regulation,Standardization & Internationalization Starting off Expansion Clean-up
Overview of the markets Non-tradable Share Reform in Chinese Capital markets Number of Listed Companies 1800 1600 1400 1200 1000 600 200 1994199519961997199819992000200120022003200420052006 D Number of Listed Companies(A, B Share) U Number of Listed Companies(B Share)I OR INTERNAL USE ONLY this communication may be reproduced or redistributed ② 中国证券监督管理委员会 BINA SECUIRTTIES E ATDRYCD
FOR INTERNAL USE ONLY – No portion of this communication may be reproduced or redistributed. Non-tradable Share Reform in Chinese Capital markets Number of Listed Companies Number of Listed Companies Overview of the Markets Overview of the Markets 0 200 400 600 800 1000 1200 1400 1600 1800 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Number of Listed Companies(A,B Share) Number of Listed Companies(B Share)
Overview of the markets Non-tradable Share Reform in Chinese Capital markets Mining 9% Transportat Manufacture ion 7% Electricit Inf Real 3% Pu. Tothe驴S1% Finance 38% A-share Market: Full Spectrum of Chinese Economy OR INTERNAL I No portion of this communication may be reproduced or redistributed 中国证券监督管理委员会 CHINA SECUIRITIES EGULATORY COMMISSION
FOR INTERNAL USE ONLY – No portion of this communication may be reproduced or redistributed. Non-tradable Share Reform in Chinese Capital markets Overview of the Markets Overview of the Markets A-share Market: Full Spectrum of Chinese Economy A-share Market: Full Spectrum of Chinese Economy Others 2% Public Utility 1% Integrated 2 % Commerce 3% Real Estate 3 % Information Technology 3 % Electricity 4 % Manufacture 28% Finance 38% Mining 9% Transportat ion 7%