History of China's stock market development?

The development of China's stock market can be divided into five stages:

1. 1990-1991 is the nascent stage of the stock market.

In December 1990 and July 1991, Shanghai and Shenzhen stock exchanges have been listed for business, the centralized stock exchange market was formally announced the establishment of China's stock market, which for the first time has the function of resource allocation. This stage is the early stage of China's shareholding reform, the basic system in the exploration of the gradual establishment of the capital market is mostly in the state of self-evolutionary development, the capital market system is initially set up, the entire market is relatively small in size, and separated from the regional pilot, the stock market issuance and trading of the lack of national uniform laws and regulations, the lack of unified norms and centralized supervision. At the same time, the development of the capital market in the ideological understanding of certain differences.

2. 1992-1997 was the experimental stage of the stock market.

At this time, the long-term existence of the stock market is still plagued by the issue of ownership, capital or social, has become the most important topic affecting the survival of the stock market. 1992, January and February Comrade Deng Xiaoping pointed out during his visit to the South, "securities, stock market, these things in the end, whether good, whether there is no danger, is not something unique to capitalism, socialism can be used? Can socialism be used? It is permissible to look at them, but we have to try them resolutely. If you see the right thing, do it for a year or two, and then liberalize it; if you are wrong, correct it, and then close it. It can be shut down quickly or slowly, and it can also leave a little tail. What to be afraid of, adhere to this attitude does not matter, will not make a big mistake." [1] Since then, China established the economic system reform goal is "to establish a socialist market economic system", the shareholding system has become the direction of state-owned enterprise reform, more state-owned enterprises to implement shareholding system reform and began to issue in the capital market. 1993, the pilot stock issuance formally promoted by Shanghai, Shenzhen to the whole country, opened the space for further development of the capital market. In 1993, the pilot stock offering program was officially extended from Shanghai and Shenzhen to the whole country, opening up the space for further development of the capital market. As a result, in May 1996, China's stock market ushered in a bull market. As a result of not yet formed a perfect supply and demand mechanism and market monitoring mechanism, the high-speed development of the stock market immediately appeared a lot of problems, the stock market prices rose and fell sharply, investors have not yet set up a correct investment concept, the prevailing wind of speculation, a large number of black-market behavior breeding, and so on. The suppression and rectification of the stock market also became one of the contents of the next macro-control. From the perspective of securities regulation, 1992-1997 was the transition stage from central and local, central departments **** with the participation of management to centralized and unified management. The regulatory mechanism of the stock market began to take shape, the regulatory system is taking shape, and provides for up and down range and trading volume limits. 1997 September China ***15th National Congress for the first time from the level of the Constitution to recognize that "shareholding is a special form of public ownership", so the status of the stock market has been formally established.

3, 1998-2001 is the stock market regulation stage.

Starting from 1998, China began to formally use laws and regulations to standardize the management of the stock market. in April 1998, the establishment of a national centralized and unified securities regulatory system, the State Council to determine the China Securities Regulatory Commission as the State Council unit directly under the State Council as the competent authority of the national securities and futures markets, and its functions have been strengthened. 1999, the stock market once again appeared in the climax of the bull market, and has been continued until 2001, the stock market has become the most important market in China. In 1999, the stock market once again saw a bull market climax, which lasted until 2001. However, the stock market has been too hot, seriously detached from the support of the fundamentals, the price-earnings ratio is very high, and a large number of irregularities have been exposed, such as the occurrence of the incident of listed companies such as Yinguangxia, Lantian, etc. is the epitome of the chaos of the stock market at that time. At the same time, the role of the stock market was defined as an important way to "relieve the difficulties of state-owned enterprises", and a large number of state-owned enterprises entered the stock market in search of funds, and the quality of their listed companies varied. With the promulgation and implementation of the Securities Law in July 1999, China's stock market entered a new stage of development with the theme of "standardization and development", and at the same time, the institutional construction of China's stock market has gradually matured. After several years of legal construction, China's securities regulations have been gradually improved. By the end of 2001, China's securities and futures market has initially formed a systematic system of securities and futures market laws and regulations, with the Company Law and Securities Law as the core, supplemented by administrative regulations, and departmental rules and regulations as the main body.

4. 2002-2004 is the transition stage of the stock market.

As the institutional construction of China's stock market entered the stage of legalized and standardized development, and with the transfer of domestic macroeconomic contradictions, the understanding of the function of the stock market deepened - it is not only a tool for fundraising, but also the rise of the stock index can bring the wealth effect, stimulate the growth of consumption, and help to improve the enterprise corporate governance structure, etc. The status of the stock market has been elevated to the overall reform and development level. China's stock market was given new functions, and the top leaders of the central government proposed that the stock market should not only serve the reform of the state-owned economy, but also serve the strategic adjustment of the country's economic structure. However, due to the fact that the institutional arrangement and system construction of the stock market at this stage were not reasonable, coupled with the blind borrowing of foreign (mainly American) experience and insufficient understanding of the special characteristics of China's stock market, the high-level and comprehensive function of China's stock market to promote the optimal adjustment of the economic structure and realize the optimal allocation of resources is still not satisfactory, and there are many dissatisfactions in the society about the current situation of the function of China's stock market. Dissatisfaction. The new China Securities Regulatory Commission (CSRC) started to improve the regulatory system. However, in the absence of a complete solution to the problem of stock split, the state was both a referee and a player, and the reform did not yield the expected results. At this stage, the value of stocks was seriously underestimated, and the price was even lower than the face value at one time, the stock market not only failed to meet the requirements of the function of optimal allocation of resources, but also failed to realize even the most basic function of fund-raising.From the end of 2003 to the first half of 2004, the long-accumulated problems and risks of the securities companies in the south, Minfa, "Delong system", etc. were concentrated and erupted. In January 2004, the State Council issued the "Opinions on Promoting the Reform, Opening-up and Stable Development of the Capital Market" (the "Nine Opinions"), which demonstrated the government's determination to promote the reform and development of the capital market, so as to promote the operation of the capital market to be more in line with the market-oriented laws. The government's determination to promote the reform and development of the capital market to make the operation of the capital market more in line with the market-oriented rules.

5. 2005 has been a period of stock market remodeling.

The reform of the stock split, which began in May 2005, is a process of reshaping the Chinese stock market. As a historical legacy of systemic flaws, the stock split has constrained the standardized development of China's capital market and the fundamental change of the state-owned assets management system in many ways. By the end of 2007, 98% of the companies in Shanghai and Shenzhen had completed or entered into the stock reform process, and the equity separation reform was basically completed in two years. Since the completion of the equity separation reform, China's stock market has entered an era of vigorous development, and is assuming the function of diverting bank funds and accelerating the pace of direct financing. What is particularly important is that after the equity distribution reform, the financing and resource allocation functions of the capital market have been realized, and a large number of Chinese companies have been successfully listed. In particular, the successful issuance of super-large-cap stocks such as Bank of China, Industrial and Commercial Bank of China, Air China, etc. demonstrated that the Chinese stock market had fully restored the functions of initial public offering financing and resource allocation after the equity distribution reform, which enabled the Chinese capital market to enter the blue-chip era. In addition, a series of reforms have been carried out in the Chinese stock market, including improving the quality of listed companies, vigorously developing institutional investors and reforming the issuance system. As a result of these reforms, investor confidence has been restored and the capital market has seen a turning point, with Shanghai and Shenzhen stock indices hitting record highs. The major monetary and exchange rate policy of continuous appreciation of RMB is also one of the basic backgrounds that created the great bull market of Chinese stock market from 2005 to 2007. By the end of 2007, there were 1,550 listed companies in China's Shanghai and Shenzhen markets***, with a total market capitalization of $3.271 trillion, equivalent to 132.6% of GDP, ranking the third in the global capital market and the first in the emerging markets. 459.579 billion yuan was raised in IPOs in 2007, ranking the first in the world. The average daily trading volume was 190.3 billion, making it one of the most active markets in the world. [2] As a result of the reform and innovation of the stock market, the capital market has thus had a significant impact on China's economy and society, and society as a whole has begun to re-conceptualize and re-examine the function and role of the capital market.