The formation and development of securities market

The formation and development of securities market

The foundation of formation

The emergence of securities has a long history, but the emergence of securities does not mean that the securities market appears at the same time. Only when the issuance and transfer of securities openly pass through the market does the securities market appear. Therefore, the formation of the securities market must have certain social conditions and economic foundation. The securities market was formed in the period of free capitalism. The emergence of joint-stock companies and the deepening of the credit system are the basis for the formation of the securities market.

First of all, the securities market is the inevitable product of the development of commodity economy and socialized mass production. With the further development of productive forces and the increasing socialization of commodity economy, capitalism has changed from the stage of free competition to the stage of monopoly, and capitalists can no longer meet the needs of huge capital growth by relying on the original bank loan capital. In order to meet the demand of socialized large-scale production for capital expansion, it is objectively necessary to have new financing means to meet the needs of further economic development. In this case, the securities and securities market came into being.

Secondly, the establishment of joint-stock companies provides the necessary conditions for the formation of the securities market. With the further development of productive forces and the continuous expansion of production scale, traditional wholly-owned enterprises and feudal family enterprises can no longer meet the needs of capital expansion. As a result, the partnership organization appeared, and then the simple partnership organization evolved into a joint-stock enterprise-a joint-stock company. Joint-stock companies raise funds from the public by issuing stocks and bonds, realize the concentration of capital and meet the needs of expanding the rapid growth of reproduction funds. Therefore, the establishment of joint-stock companies and the issuance of company stocks and bonds provide a solid foundation for the emergence and development of the securities market.

Third, the development of the credit system has promoted the formation and development of the securities market. Due to the development of modern credit system, credit institutions have developed from a single intermediary credit to direct credit, that is, direct investment enterprises. As a result, financial capital gradually penetrated into the securities market and became an important pillar of the securities market. Credit instruments generally have liquidity requirements, and securities such as stocks and bonds have strong liquidity, and the securities market just creates conditions for the circulation and transfer of securities. It can be seen that the more developed the credit system, the more likely it is to mobilize more public monetary income to be converted into monetary capital and invested in the securities market. The rise of the securities industry has also opened up broad prospects for the development of the modern credit system.

Western securities market

The formation and development of securities markets in western countries

In western countries, the securities market has gone through three stages: formation, development and perfection.

(A) the formation stage of the securities market (65438+the first day of the 7th century 65438+the end of the 8th century)

Looking back at the history of capitalist economic and social development, the initial germination of the securities market can be traced back to Western Europe during the primitive accumulation of capitalism in the early16th century. At that time, there were already securities trading activities in Lyon, France and Antwerp, Belgium, and the first to enter the securities market was national bonds. /kloc-at the beginning of the 0/7th century, with the development of capitalist economy, there appeared a production and operation mode of separation of ownership and management rights, that is, the formation and development of joint-stock companies. The establishment of joint-stock companies makes stocks and bonds begin to be issued, thus making stocks and corporate bonds enter the ranks of securities trading. 1602, the world's first stock exchange was established in Amsterdam, the Netherlands.

1773, the first British stock exchange was established in Jonathan Cafe, and 1802 was officially approved by the British government. This stock exchange is the predecessor of the London Stock Exchange. At first, the trading variety of this exchange was national debt, and later, corporate bonds and mines and canal stocks entered the exchange for trading.

1790, the Philadelphia Stock Exchange, the first stock exchange in the United States, was announced to be established to trade government bonds and other securities.

1792 may17, 24 brokers gathered under a buttonwood tree on wall street and reached an agreement called "buttonwood agreement" through negotiation, stipulating that they would meet under the buttonwood tree every day to engage in securities trading, and set the trading terms such as the minimum trading commission.

In 18 17, these brokers formed the "new york Stock Exchange", and in 1863, they changed their name to "new york Stock Exchange", which is the predecessor of the famous new york Stock Exchange. Under the influence of the capitalist industrial revolution in the18th century, joint-stock companies have become a common form of enterprise organization in railway, transportation, mining, banking and other industries, and their stocks and various bonds circulate in the securities market, marking the basic formation of the securities market.

The characteristics of the securities market in this period are: the credit instruments are very single, mainly in the form of stocks and bonds; The stock market is small in scale and mainly operated by hand; The stock market has changed a lot, and speculation, fraud and manipulation are very common; The legislation of the securities market is not perfect, and the securities market is also scattered.

(B) the development stage of the securities market (65438+early 2009-1920s)

The industrial revolution, which began in the 1970s in 18, has been completed in major capitalist countries by the middle of 19 century. The industrial revolution promoted the rapid development of machinery manufacturing industry, and made joint-stock companies generally established in machinery manufacturing industry. For example, the industrial revolution in Britain was completed in the late 1930s and early 40s of 19. The machine industry replaced the traditional workshop handicraft industry, and the machine manufacturing industry gradually occupied a dominant position in the industrial system. 65438+From 1970s to 1980s, joint-stock companies developed greatly.

1862, there were 165 joint-stock companies in Britain. In the mid-1980s, there were more than 5000 registered joint-stock companies/KLOC-0. This process takes place in Britain and all capitalist countries without exception. After the industrial revolution in America, France, Germany and other European and American capitalist countries, joint-stock companies quickly became the main organizational form of enterprises. The establishment and development of joint-stock companies have continuously expanded the circulation of securities. According to statistics, the amount of securities issued worldwide is 761871-188+0 billion francs,1-1890,645 billion francs,/kloc-0. 19111920 is 300 billion francs,1921-kloc-0/930 is 600 billion francs. At the same time, the structure of securities has also changed. The main positions in securities are not government bonds, but company stocks and corporate bonds. According to statistics, among the securities issued in 1900- 19 13, government bonds accounted for 40% of the total securities issued, and corporate bonds and various stocks accounted for 60%.

Looking at the securities market in this period, its main features are:

First, joint-stock companies have gradually become the main enterprise organization form in the economic society;

Second, the circulation of securities has been expanding and has begun to take shape;

Third, some countries began to strengthen securities management and guide the standardized operation of the securities market. For example, Britain promulgated the Regulations on Joint-stock Companies on 1862, Germany adopted the Limited Liability Company Law on 1892, France adopted the Company Law on 1867, and Japan promulgated the Securities Exchange Law on 1894. Fourthly, the stock exchange market has been developed, such as Tokyo Stock Exchange was established in 1878, Zurich Stock Exchange was established in 1877, and Hong Kong Securities Brokers Association was established in 189 1, and14 was renamed as Hong Kong Stock Exchange.

(C) the perfect stage of the securities market (since 1930s)

The economic crisis of 1929- 1933 is the most serious, profound and destructive in the capitalist world. The crisis has seriously affected the securities market. At that time, the stock prices of major securities markets in the world plummeted and the market collapsed, causing heavy losses to investors. By July 8 1932, knife? The average price of Jones Industrial Stock is only 4 1, which is only the highest level 1 1% of 1929. The great crisis made governments of all countries clearly realize the need to strengthen the management of the securities market, so governments all over the world have formulated securities market laws and regulations and set up management institutions to make the securities trading market more legal. For example, during the period of 1933- 1940, the United States successively enacted the Securities Exchange Law, the Securities Law, the Trust Clause Law, the Investment Consultant Law and the Investment Banking Law. Other countries have also implemented comprehensive control and management of securities issuance and trading in the securities market by strengthening legislation.

After the end of World War II, with the economic recovery and development of capitalist countries and the economic growth of various countries, the securities market has also been rapidly restored and developed. Since the 1970s, the securities market has experienced a highly prosperous situation, and the scale of the securities market has been constantly expanding, and securities trading has become increasingly active. During this period, the operating mechanism of the securities market has undergone profound changes and some obvious new features have emerged.

1. Financial securitization. The proportion of securities in the whole financial market has risen sharply, and its position has become more and more prominent. Especially in the United States, with the emergence of new financial instruments, securities investment activities are widely and effectively carried out; In Japan, in the 1960s, the capital of enterprises mainly depended on bank loans, and securities financing accounted for less than 20% of the total financing. By 1978, the proportion of securities issued rose to 44%. At the same time, the structure of residents' savings also shows the trend of securitization. In order to maintain and increase income, people turn their savings from bank deposits to securities investment.

2. Diversification of the securities market. This is mainly manifested in the following aspects: the types, quantity and scope of various securities are constantly expanding; Trading methods are increasingly diversified. In addition to spot trading of securities, there are many trading methods such as futures trading, option trading, stock index futures trading and credit trading.

3. Legalization of securities investment. After World War II, securities investment changed. In addition to individuals subscribing for securities, the proportion of legal persons investing in securities is also increasing. Especially after 1970s, with the large-scale entry of pension funds, insurance funds and investment funds, the speed of corporatization and institutionalization of securities investors has been further accelerated. Corporate investors have expanded from financial institutions in the past to various industries. It is estimated that the company's investment accounts for about 50% of the world securities market.

4. Legalization of the securities market. After World War II, western countries paid more attention to the legal management of the securities market, constantly formulated and revised securities laws and regulations, and constantly promoted the standardized operation of the securities market. At the same time, through various technical supervision and management activities and strict enforcement of securities market regulations, the securities market tends to be stable, and speculation, manipulation and fraud in the securities market gradually decrease.

5. The securities market is networked. Since the second half of 1950s, computer systems have been used in the securities market. 1970, the London Stock Exchange adopted the market price display device. 1972 February, the "National Association of Securities Dealers Automatic Quotation System" was established in the United States. 1978, the new york Stock Exchange established a "cross-market trading system", which connected Boston, new york, Philadelphia, Cincinnati and other exchanges through electronic communication networks, so that the price and trading volume of each stock in each exchange were displayed on the screen, and brokers and investors could directly buy and sell securities in any stock market. So far, the world's major securities markets have basically realized computerization, thus greatly improving the operating efficiency of the securities market.

Driven by computer-based network technology, the networking of the securities market has developed rapidly, which is mainly reflected in the rapid development of online transactions.

Compared with traditional trading methods, the advantages of online trading are:

First, investors can trade anytime and anywhere because of sudden time and space constraints;

Second, it is intuitive and convenient. On the Internet, you can not only browse real-time trading quotations and consult historical materials (announcements, annual reports, business information, etc. ) and online consultation.

Third, the cost is low, which can be greatly reduced for both securities companies and investors. Undoubtedly, the networking of the securities market will be one of the most basic development trends of the securities market.

6. Internationalization of the securities market. Modern securities trading tends to be global. Computer systems are used in securities business. Brokers in the world's major securities markets can maintain all-weather contact with foreign commercial institutions through their own computer systems. All the major stock exchanges in the world have become international stock exchanges. They not only listed a large number of securities of foreign companies in their own countries, but also set up branches abroad to engage in international stock consignment transactions.

1990, there were 500 foreign companies listed on the London Stock Exchange, 1 10 listed on the new york Stock Exchange and more than 80 listed on the Tokyo Stock Exchange. More and more companies issue stocks and bonds in foreign securities markets. Relevant data show that 1975, 80 of the 220 large American companies with sales exceeding $654.38 billion were listed on foreign stock exchanges. The internationalization and global integration of securities investment have become the general trend of securities market development.

7. Financial innovation continued to deepen. Before World War II, securities were generally only stocks, corporate bonds and government bonds. After World War II, securities financing technology in western developed countries changed with each passing day, and securities kept innovating. New securities, such as floating rate bills, convertible bonds, warrants, installment bonds and composite securities, have emerged one after another. Especially in the last 20 years of the 20th century, financial innovation has made great progress, and the rapid development of derivatives such as financial futures and options trading has brought the securities market into a brand-new stage.

The innovation of financing technology and securities varieties has enhanced the vitality and attractiveness of the securities market and accelerated the development of the securities market. The innovation of securities varieties and securities trading methods is the source of vitality of the securities market. In fact, since 1970s, financial innovation has formed a trend of accelerated development, which has become a key factor for financial enterprises to survive and develop in the fierce competition. Driven by the integration of the world economy, with the renewal of the material and technical basis of the securities market and the further development of diversified investment demand, a new wave of securities innovation will be formed in 2 1 century.

Formation and development

China's securities market has a long history of development, but it has unique characteristics, that is, there is no direct inheritance and continuation relationship between the securities market in old China and the securities market in new China, and its market development is also very different. Therefore, to study China's securities market, we must discuss the situation of old China and new China respectively.

(1) The securities market in old China.

The securities market in old China has a long history, during which it experienced several twists and turns, ups and downs, which can be roughly divided into the following stages.

1. Germination stage (Tang Dynasty-Qing Dynasty)

There were banks and banks in China before the securities market and modern banking, which was the embryonic form of the securities and securities market in feudal times.

According to historical records, as early as 1000 years ago in the Tang Dynasty, there appeared government stores and quality warehouses that were also engaged in banking. By the Song Dynasty, there had been banks and money houses specializing in silver, currency and paper money trading. After the mid-Ming Dynasty, due to the relative political stability, commodity production developed rapidly, especially in Jiangsu and Zhejiang provinces, towns flourished, businesses prospered, and the financial industry developed, resulting in the early form of the securities market-the money market, with strict operating system and diverse business contents. Since the Qing Dynasty, with the invasion of imperialism, a large number of silver dollars poured in from abroad, and various currencies such as silver dollars, silver coins, coins and copper coins began to be used everywhere, so the exchange of silver dollars and silver coins into coins and copper coins became one of the main businesses of banks at that time.

Later, due to the invasion of various foreign banknotes, the currency circulating in the market further increased, and the currency exchange and trading business became busier. At first, there was no fixed place for this primitive securities activity. Later, with the expansion of trading volume, trading places gradually fixed, and gradually formed a tangible trading market.

By the middle of Qing Dynasty, this money market had been widely developed in Jiangsu and Zhejiang provinces. Among them, Shanghai, Hangzhou, Ningbo and Suzhou developed rapidly and gradually became the center of China's early money market. These markets have a very close relationship with local national industry and commerce and have strong vitality. They are not only the initial form of China stock market, but also an important part of old China financial market.

2. Formation stage (late Qing Dynasty-1920)

The formation of the old China stock market, like many countries in the world, was based on joint-stock enterprises and the issuance of government bonds.

After the Opium War, China quickly became a semi-colonial and semi-feudal society. The powers signed a series of unequal treaties with China and gained many privileges. Under the protection of these privileges, foreign powers not only exported goods to China, but also gradually increased their colonial investment in China. Foreign businessmen set up a large number of enterprises in China, mostly in the form of joint-stock companies, and brought foreign shares to China to raise funds and issue a large number of shares. At the same time, foreigners who invest in China urgently demand the "cooperation" of China businessmen to raise the huge capital needed by modern large-scale industries. Therefore, the rights issue of Chinese businessmen in foreign-funded enterprises has become a remarkable phenomenon, and all industries such as shipping, insurance, banking, textile, gas and electric lights are inseparable from the rights issue of Chinese people. According to statistics, in the19th century, the capital of foreign enterprises with shares attached by Chinese businessmen totaled more than 40 million yuan. 19 After the 1970s, the Westernization Group of the Qing government set up some civilian industries jointly run by officials and businessmen, such as Li Hongzhang, Sheng Xuanhuai's General Administration of Merchants who organized ships in 1872, and later Zhongxing Coal Mine Company, Hanye Pingmei Iron Plant and Sheng Da Cotton Mill all raised funds by issuing shares. With the emergence of these joint-stock enterprises, a new investment tool, stock, has appeared in China.

The earliest bonds issued in China began at 1894. In order to pay for the Sino-Japanese War, the Qing government issued "interest-bearing bonds", and since then, a large number of government bonds have been issued. During the rule of Beiyang warlords, Yuan Shikai engaged in years of melee and warlord separatism in order to consolidate his power, and spent a lot of money, and the government also issued bonds many times. According to statistics, during the 16 years under the rule of Beiyang government, a total of 520 million yuan of various types of public bonds were issued.

With the increase in the issuance of stocks and bonds, the securities trading market has also developed. At 1869, there are foreign companies buying and selling shares of foreign companies in Shanghai. At that time, it was called the Donors Association.

189 1, foreign investors set up offices of Shanghai Stock Exchange in Shanghai. 1905, the office was named "Shanghai MCC Office", which was operated by foreign investors and was the earliest stock exchange in old China. The main trading objects of this firm are foreign enterprise stocks, corporate bonds, bonds issued by foreign administrative agencies in Shanghai, China government gold coin bonds and rubber stocks in Nanyang. China's own securities trading began around the Revolution of 1911.

The period from 1895 to 19 13 was the initial development period of capitalism in China. National industry and commerce flourished, stock issuance increased, and circulation gradually expanded. 19 13 years, some big firms in Shanghai, such as Qian Shang and tea merchants, also engaged in securities trading and established the "Shanghai Securities Merchants Association".

19 14, the Beiyang government promulgated the Securities Exchange Law, and securities trading began to get on the right track. 19 18, with the approval of Beiyang government, Beiping Stock Exchange was established, which is the first stock exchange founded by Chinese people in China. 1920, with the approval of Beiyang government, "Shanghai Stock Merchants Association" was officially reorganized into "Shanghai Huashang Stock Exchange"; 192 1 year, Beiyang government approved the establishment of "Tianjin Stock Exchange". After the establishment of these stock exchanges, the business is booming and the profits are rich, which makes investors flock to them. In Shanghai alone, the number of stock exchanges has increased to 192 150 in more than half a year.

However, except for a few domestic bonds, most of the trading objects of these exchanges are the stocks of this exchange, and they are also temporary loans and loans of the currency industry, mainly futures trading, and a large number of stocks are short-selling and short-selling. In the autumn of 192 1, due to the tight money supply, many exchanges were difficult to maintain and closed down one after another, resulting in a famous "information exchange tide" in history. By 1922, there were only a dozen national stock exchanges, which made the stock exchanges turn into depression and decline.

3. "Recovery" and Short-lived "Prosperity" Stage (1937- 1949)

After the outbreak of War of Resistance against Japanese Aggression, with the retreat of Kuomintang troops, bond trading plummeted and the bond trading market became increasingly depressed. On the contrary, after more than a decade of silence, the stock market has shown a "warming up" phenomenon. At that time, because the Japanese and puppet authorities prohibited all centralized and secret transactions of public debt, foreign stocks, gold and silver, foreign exchange and cotton, cotton yarn and other materials, a large number of hot money was concentrated in China stocks, which gradually prospered the trading of China stocks, and the number of companies specializing in stock trading surged. The number of stock companies and securities trading companies in Shanghai alone soared from a dozen to more than 70 in 1940, and the number of securities trading companies in Tianjin reached 65438 at its peak.

1943 In September, Shanghai Huashang Stock Exchange was ordered to resume business, specializing in China stock trading, and the number of listed companies increased to 199. Since the resumption of trading, stock speculation has been frequent, the stock market has been turbulent and the stock price has fluctuated violently.

After the victory of the Anti-Japanese War, the Kuomintang government first banned securities trading, and the Shanghai Huashang Stock Exchange closed down on August 1945, but the black market trading did not stop. Therefore, the Kuomintang government plans to establish an official securities market instead.

1946 In May, the Kuomintang government decided to set up the Shanghai Stock Exchange with a capital of 65,438 billion yuan. The original shareholders of Shanghai Huashang Stock Exchange subscribed for 6/ 10 shares, and the rest were subscribed by China Communications, Agriculture, Central Trust Bureau and Central Postal Savings and Remittance Bureau. In September of that year, the exchange officially opened and was divided into two markets: stock and bond. 1February, 948, Wanjin Stock Exchange opened with a share capital of 65,438 billion yuan. At one time, trading was booming and OTC trading was also very active.

1948, the Kuomintang government announced the implementation of currency reform and ordered the national exchanges to temporarily close down, which led to the decline of the short-lived "prosperous" stock market.

(B) New China's securities market

In the early days of liberation, inflation, rising prices, rampant black market and rampant speculation, in order to stabilize the market and crack down on the black market, the people's government decided to set up stock exchanges managed by the people's government in Tianjin, Beijing and other cities. However, with the improvement of national finance, the currency began to stabilize and the transaction volume declined. Soon, with the development of the "three evils" and "five evils" movement, stock speculation was controlled, and the business of the stock exchange gradually declined. The securities market in the early days of the People's Republic of China was not only short-lived, but more importantly, it was a transitional form before the securities trading activities in old China were eliminated in the early days of the People's Republic of China. By 1952, the people's government announced the closure of all stock exchanges; 1958, the state stopped borrowing from abroad; 1959 termination of issuance of domestic treasury bonds. In the next 20 years, there will be no stock market in China.

After the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China, with the deepening of China's economic system reform and the development of commodity economy, people's income level has been continuously improved, and social idle funds have been increasing day by day. However, due to the continuous expansion of funds needed for economic construction, the problem of insufficient funds is very prominent. Under this economic background, there are more and more calls for establishing a long-term capital market and restoring and developing the securities market, and China's securities market came into being in the reform.

1. Distribution market. The recovery and start-up of China's securities issuance market began with the issuance of 198 1 year treasury bonds. Since then, bonds have been issued every year, and the amount of bonds issued has been increasing. The types of bonds have expanded from national bonds to financial bonds, corporate bonds and international bonds. China's stock issue began on 1984.

1In September, 1984, Beijing established the first joint-stock company, Tianqiao Department Store Co., Ltd., and issued shares. In June165438+1October of the same year, Shanghai Le Fei Audio Co., Ltd., founded by Shanghai Electroacoustics General Factory, publicly issued shares to the public. Later, Shanghai Zhong Yan Industrial Co., Ltd. also issued shares to the society. Other cities across the country have also issued shares. Under the guidance of the government, with the increase of joint-stock pilot enterprises, the scale of stock issuance in China has been expanding. The stock issuance involves ordinary domestic RMB A shares, special RMB B shares for domestic and foreign legal persons and natural persons, H shares and N shares issued overseas.

2. Trading market. China stock exchange market started at 1986. 1In August, 986, Shenyang Trust and Investment Company opened its securities trading business for the first time. Later, Shenyang Construction Bank Trust and Investment Company and China Industrial and Commercial Bank Shenyang Securities Company also started this business. In September, 1986, the trust departments and trust and investment companies of several professional banks in Shanghai started the "OTC trading" of stocks. 1988 In April and June, the Ministry of Finance conducted a pilot transfer market in large and medium-sized cities nationwide.

By 1990, the national OTC market was basically formed, and with the formation of OTC market, the OTC market also developed rapidly. 1October 26th 1990, 165438+ the State Council authorized the People's Bank of China to approve the establishment of Shanghai Stock Exchange, June1990,65438+February. 1991April 1 1 day, another domestic stock exchange approved by the People's Bank of China, Shenzhen Stock Exchange, was also announced and officially opened on July 3 of the same year. The establishment of two stock exchanges marks the transformation of China stock market from decentralized OTC trading to centralized OTC trading.

At the same time, some large and medium-sized cities in China, such as Wuhan, Tianjin, Shenyang, Dalian and other places, have also set up 27 securities trading centers to accept various bonds and investment funds. Some trading centers are also connected with the Shanghai and Shenzhen stock exchanges, so that the trading activities of the two stock exchanges can be radiated and extended. Moreover, from 1990 to 10, the People's Bank of China has also established the National Stock Exchange Automatic Quotation System (STAQS), which is located in Beijing and connects large and medium-sized cities with active domestic securities trading through computer networks, providing members with information on securities trading prices and services such as quotation, trading, delivery and settlement. The system was put into operation in April of 199 1. By the end of 1994, it had 189 member companies in 42 cities across the country.

1Feb. 993, with the approval of the People's Bank of China, another securities trading network, China Securities Trading System Co., Ltd. (NET), was established. The network system center of China Stock Exchange is located in Beijing, connecting computer networks all over the country with communication satellites, providing services for securities trading, trading, clearing, delivery and custody, and providing investment consulting and information services in the securities market. The system was officially opened on April 28th, 1993. By the end of 1994, the satellite communication network of the system had covered more than 100 cities in China, and dozens of securities companies were connected to the network.

Until 1998, China's securities trading market once formed a hierarchical feature with "two exchanges and two networks" as the main body and the combination of centralization and decentralization. At that time, except for STAQ and Beijing Net system, most of the OTC markets were regional property rights trading markets set up by local governments to invigorate the local economy and promote the flow of equity. They are mainly positioned to solve the trading and circulation of local legal person shares, internal employee shares and fund securities, and the rules are different, the organization and management are chaotic, and the quality of some listed companies is low, which is easy to cause financial risks and social problems. Although these markets have indeed played a very good role in the restructuring and financing of local enterprises. However, there are many problems in the OTC market because the country has not formulated unified policies and regulations to effectively regulate and manage the OTC market.

After the financial crisis in Southeast Asia, in order to prevent financial risks and rectify the financial order, trading centers and legal person stock markets in various places have been cleaned up one after another, and various forms of over-the-counter stock trading have been explicitly prohibited by the Securities Law, forming two systems with highly centralized Shanghai and Shenzhen Stock Exchanges and centralized stock circulation. However, since then, the inherent liquidity requirements of stocks and the practical needs of joint-stock system reform of enterprises, bond financing of various departments, investor investment, etc. still push all kinds of OTC markets to weaken from strong to weak with the efforts of central government regulation, or continue to exist in the form of underground and semi-underground markets. The OTC transfer market of legal person shares did not stop because of the closure of STAQ and the Internet. The most active form of this market is the circulation by auction, and the auction house has become the "exchange" of legal person shares.

But in July of 20001year, China Securities Regulatory Commission officially denied the compliance of this market. At the same time, the technology property market in various places is emerging, which has taken over some functions of the OTC market. In order to solve the problems left over from STAQ and the network closure, China Securities Association issued the Pilot Measures for Stock Transfer Services of Securities Companies on June, 2006 12. Six securities companies are selected as pilot units to handle the tradable shares of the original network and STAQ system 1 1 listed companies through their outlets. Some delisted and delisted stocks are also transferred by qualified securities companies selected by the China Securities Association.