To Get Rich is Glorious!: China's Stock Markets in the '80s and '90s (Studies on the Chinese Economy)

To Get Rich is Glorious!: China's Stock Markets in the '80s and '90s (Studies on the Chinese Economy)

Language: English

Pages: 243

ISBN: 1349424420

Format: PDF / Kindle (mobi) / ePub

From village collectives in Southern China in the early 80s to the summer 1999 share rally, To Get Rich is Glorious provides a guide to twenty years of China's stock markets. The book analyses the changes that have occurred in all areas of China's securities business including legal, regulatory, share structure, issuers, investor base and market performance. Topics are placed in the context of the industry's overall development to highlight the market's current situation as China enters the new century.



















Shenzhen provisions were directed primarily at the restructuring of Shenzhen’s own SOEs, but the government welcomed all to use them as a guide: ‘other SOEs, co-operative enterprises implementing restructuring, and newly established internally capitalized companies limited by shares can also proceed based on these regulations.’ This was a very refreshing approach as it was non-compulsory. The Shenzhen provisions defined the restructuring of an SOE into a shareholding company as follows: ‘…

89 companies with minority state ownership had completed formal listings of their shares. The listing of the shares of the seemingly ‘privatized’ shareholding companies of the 1980s marked the end of one potential outcome for the shareholding experiment: apparent privatization, 2 or at least the elimination of the proliferation of various share types which over time led to the severe illiquid overhang in China’s stock markets. This latter point is illustrated well by comparing Tables 3.3 and 3.4

was likely to be. Bodies represented included the State Planning Commission (‘SPC’), the Ministry of Finance (‘MOF’), the State Administration for Foreign Exchange Control (‘SAEC’), the State Tax Bureau, the State Asset Management Bureau (‘SAMB’), the State Council Office for the Economy and Trade, the Ministry for Foreign Economic Relations and Trade (‘MOFERT’) and the State Bureau for Industrial and Commercial Administration. With no clearly designated senior leader, and there was none as most

whether for increased global competition or just an international IPO. 6.4 A case of international listing approvals For the years 1992 through 1997 candidates for overseas listings were approved by the State Council in groups or ‘Batches’ with the First Batch announced in October 1992 and the last, or Fifth Batch, in 1998. After the failed Fifth Batch, the state has taken a more ad hoc approach, approving candidates which it wants reformed as a matter of policy. Companies that attempt

with a single enterprise to promote during the run-up to the Fifth Batch in 1998 although in the Fourth Batch it was represented by a highway, two steel companies (one centrally owned) and a chemical fertilizer plant. And if Shanghai could come up with only five candidates during this six-year period, the difficulties elsewhere are easy to imagine. The Issuers and the Listing Process 139 6.6.2 Domestic issuers There have been two periods of intense domestic market activity as illustrated in

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