China's stock market three "10 years"

Accompanied by 30 years of reform and opening up, China's capital market has also experienced from birth, to speed up the trial the history of the development process. In the 30 years of reform and opening up under observation against the background of China's capital market can be divided into three "10 years", the three major stage of development. 1978 -1988: fools and firm exploration period December 18, 1978 to 22, held the Third Plenary Session of the 11th CPC put forward focusing on economic construction, reform and opening-up. In March 1979, the CPC Central Committee and State Council decided to set up a financial and economic committee, as a financial and economic decision-making body of work. Subsequently, China's enterprise reform, investment and financing system reform, gradually push forward reform of the financial system. In the process, a central leader of the far-sighted, prudent decision-making, the development of Chinese capital market has begun to nurture the idea of the strategy. Stock market economy as a common investment and financing tool, the Third Plenum held in less than five years, it re-appear in the Chinese. In July 1983, Shenzhen Bao'an County Joint Investment Company (predecessor of Limited today Baoan) to issue shares to the public; in September 1984 and November, there have been bridge Beijing Department Store Co., Ltd., Shanghai Co., Ltd. Feileyinxiang (Commonly known as "Le Xiaofei") and the establishment of the society to issue stock. Beijing, Shanghai and Shenzhen almost three places at the same time the stock a new thing, not an accident. Prior to the system and pre-prepared to explore the capital market has made a test bedding. In May 1980, the State Council Office for Restructuring the establishment; in May 1982, the State Commission for Restructuring Economy on the basis of the establishment of the National Commission for Economic Restructuring. Reform and opening-up of a series of operations carried out in succession: in July 1979, Shenzhen, Zhuhai, Shantou and Xiamen on a trial basis at the SAR; in September 1980, the state-owned industrial enterprises to expand the full implementation of operational autonomy; in July 1981, by Shashi in Hubei Province Identified as the first comprehensive economic reform pilot city; in 1983, the State Council, People's Bank of China made responsible for the exercise of the functions of the central bank's decision. November 14, 1986, Deng Xiaoping met in Beijing with the United States where the New York Stock Exchange chairman John Lin Seoul, to accept his gift to the guests of the New York Stock Exchange, a badge, a 50 rebate with a face value of the shares in Shanghai Feileyinxiang limited The company's stock. Prior to September, the Industrial and Commercial Bank of Shanghai Jing'an securities business to open a new Chinese stock trading counter precedent. In March 1987, the state introduced a stock issued by the national laws and regulations, and decided since 1988 in Shanghai and Shenzhen stock markets and carry out joint-stock reform package. In September 1988, Wan Hotel in Beijing, the "reform of the financial system and preparations for the Beijing stock exchange seminar" opened a prelude to the preparations for the Stock Exchange. The meeting was chaired by the then vice president of the People's Bank of China, was the first of the China Securities Regulatory Commission Chairman Liu Hongru chaired by the State Commission for Restructuring the Economy and Economic Restructuring Office of the People's Bank of China head office held in the name. After the meeting, by Gao (former vice chairman of the China Securities Regulatory Commission, now the general manager of the China Investment Co., Ltd.) and Wang Boming (China's securities market research and design center Director-General) and others prepared "on the Chinese stock market started with the idea of management" . Nov. 9, when he was commissioned by the CPC Central Committee and the Central Financial and Economic Leading Group and Yao Yilin, deputy head of the office of the Secretary-General Zhang Jinfu group held a meeting at Zhongnanhai, was briefed on China's stock market started about the idea. After that, Wang Boming, such as by the executor of the term "joint research and design the Office of the Stock Exchange" (referred to as the "Liaison Office") was established in Beijing, the Stock Exchange to create the substantive work of promoting the official start. (Note: in April 1992, the author joined the Stock Exchange of the Office of the Joint research and design.) From 1978 to 1988, China's capital market from germinating into a "commitment to try to" no more than 10 years fillip. The top leaders of the Great Hall of the People in the stock gift to the guests and the State Council in the Zhongnanhai leadership of the stock market started to listen to the report, open to the transmission of the spring. 1989 -1998: monitoring the market and the run-in period In the second half of 1989, the central authorities decided to start organizing the work of the Shanghai Stock Exchange. Early in 1990, the organization of the State Council and the Shanghai group to be submitted in the first quarter of 1991, the formal establishment of the Shanghai Stock Exchange. Then-secretary of the CPC Shanghai Municipal Committee and mayor of the report Rongji's instructions: "This time too late, it is necessary to set up this year." November 26, the SSE was established; on December 19, held the opening ceremony. SSE opening to the world the release of a signal, a determination to declare: China will unswervingly follow the path of socialist market economy. Although many people find it hard to believe, but in 1990 it was China's capital market "bold" provides us with an important year. In addition to the establishment of the SSE, Shenzhen Stock Exchange are being planned, in the light of the United States Nasdaq pattern "of the National Securities Trading Automated Quotation System" (STAQ) also opened in December. China's stock market from the date of birth, along with the controversy, the focus of the stock market is the name of "Society" name or "capital." The high-level concern. From the end of 1991 to early 1992, there have been 4 of the party and state leaders in person to inspect SSE. A time of the details are: January 16, 1992, Comrade Jiang Zemin wrote an inscription for SSE and inspection "of development with Chinese characteristics and improve the securities market." January 17, Comrade Deng Xiaoping in Beijing, began his inspection tour of the South. Deng Xiaoping in January 18, 1992 -2 21 provinces and municipalities to inspect the South, in the January 19-23 Shenzhen during the inspection, "the securities and the stock market what these things are good, there is no danger, is not capitalism Unique things, not to socialism? Allowed, but must resolutely test. "Thesis that an end to the controversy, it set off a Chinese joint-stock reform and stock market boom of the pilot. March, the SSE listed on the stock remote start, Shanghai and Shenzhen stock markets of the country gradually. In the process, the stock market in the development of the issue has been fully exposed. To strengthen macro-management of the securities market, on October 25, the State Council Securities Commission and the establishment of the China Securities Regulatory Commission, the exercise focused on the securities market reunification of the country's regulatory functions. December 17, to the provinces and autonomous regions of the State Council issued "The State Council on further strengthening the macro management of the stock market." At the same time strengthening supervision, the state decided to issue shares to the national roll out. Since 1993, all provinces and autonomous regions can choose one or two companies to issue stock. In the second half, significantly speeding up the pace of issuing new shares. Relevant national laws and regulations have also introduced. Due to an increased supply of shares, investors and the market is lagging behind the pace, the stock market fell sharply. In the first half of 1994, Shanghai, Shenzhen stock market index fell 333 points and 96.56 points. July 29, management announced the suspension of the listing of new shares, including the "four major policies to rescue the market," went into the stock market. To September, the SSE Composite Index breakthrough in 1000, speculation intensified atmosphere. To curb excessive speculation, the management has adopted a non-investigated and dealt with institutions, such as measures to adjust the trading system, the market continues to grow. In 1995, the proposed high-level development of the stock to "in order to slow rather good." The then President of the China Securities Regulatory Commission Zhou Daojiong "in the specification and development, in order to further standardize the development of" regulatory philosophy. This year's Shanghai and Shenzhen stock markets relatively flat. Many in the industry who realize that in the development and supervision to strike a balance between the two is a big challenge, is a high art. In 1996, the state-owned enterprises need to speed up the background, the central leadership in April to raise the stock market, "developing steadily, due to speed up." As the central bank to cut interest rates twice in a row, the local governments to support the development of listed companies, together with the people of Hong Kong's vision is about to return to the motherland in 1996, a large number of new issues not only to put pressure on the market, but the market has added to speculation continued hot. Add a few years ago to open an account 8,000,000, investors in a rapidly expanding scale. Booming stock market trading once again triggered a wave of speculation. In October, the government has introduced 12 measures to cool down, but it will not be effective. December 16, the People's Daily published an article entitled "correctly understand the current stock market" special commentator's article, it must guard against "excessive speculation and a serious potential risk" and the stock market went down. Since then, the Government continue to strengthen the norms on the one hand, on the one hand, continue to show the development of capital markets. In the second half of 1997, to enter the stock market downturn, until 1998. 1999 -2008: the internationalization of the adaptation period In early 1999, was re-look at the performance of capital markets, aware of the serious downturn in the stock deviated from the good macroeconomic situation, it is necessary to adjust the system through, the market rebounded. Subsequently, management has taken to encourage institutional investors into the market, reducing trading costs, such as a series of measures to gradually warmer market. May 19, the outbreak of the Shanghai and Shenzhen stock market blowout. June 15, the People's Daily published an article entitled "firm confidence in the development of norms," the special commentator's article pointed out that "519" since the rise is trend coincides with the macro-economic "restorative up" to encourage people to participate in Capital markets. During this period, more and more people aware of the need for China to establish a strong capital market. However, the development of the market cycle is always another spiral. Rapid rise in the stock market, lack of supervision on some of the exposed once again. It again caught the supervision and development in the confusion. Moreover, this time of confusion and more Chinese capital markets linked to the internationalization of the path. From the beginning of 2001, "Casino" and "bubble", "stock of the whole people" with extreme criticism at the spread of color, and even suggested it was "replaced." In the debate, capital market development in some of the contradictions inherent in the exaggerated, the stock market governance has also been some deviations. Accompanied by controversy, the secondary market in the reduction of state-owned shares of the policy recommendations have been recognized as a direct result of the stock market. The year-long debate over the rise to a significant result: the whole society to recognize changes in China's stock market listing of local issues, it is necessary to gradually implement full circulation. To seek greater consensus in November 2001, the China Securities Regulatory Commission to open the community to seek the state-owned shares reduction plan and a proposal. A few months later, a number of parties to form a consensus. But in the run-up decision-making, high-level decision on this reform on hold. June 2001 14, the stock market up short or long, up to a 4-year-long period in the doldrums. This period has also become China's capital market development and regulation of the great period of reflection. 2003 was the fifth Securities Regulatory Commission Shang Fulin, chairman of the first year of taking office. He quietly for Shanghai, the stock market thoroughly, in a wide range of research, stressed that "the intensity of reform, the speed of development and market affordable degree." Since then, the idea of leading a series of major reforms. January 31, 2004, the parties to pool the wisdom "of the State Council on promoting the capital market reform, opening up and stable development of a number of" out, comprehensively and systematically expounded on the development of capital markets, the guiding ideology of the main tasks and policy measures to emphasize " Vigorously develop the capital market is from the State Department of the CPC Central Committee and the overall strategy of starting to make an important decision-making. " By the end of April 2005, the central authorities have decided to do, "State Department of the CPC Central Committee for many years but in the end always wanted to do things", to start share reform. To February 2007, 95% of the completion of the share reform of listed companies, stock symbol into the finishing phase. Shares will be diverted to more social resources into capital markets, but also greatly stimulated the enthusiasm of investors, the stock index to rise. In the past some of could not in the domestic market is large companies in 2006, 2007 two years after another to achieve the listing. Including the Bank of China, Construction Bank, Industrial and Commercial Bank, and so on. In the new situation and the stock market also rose along with the speculation heating up. In the first half of 2007, the management of a variety of ways, often prompted risk, while increasing insider trading, price manipulation, and other illegal acts investigated and dealt with. However, market speculation atmosphere is difficult to contain. November 16, 2007, the SSE Composite Index was over-optimistic mood created a record high of 6124 points, followed by the beginning of the adjustment. China's capital market, prices fell intrinsic reasons, that is, "added the emerging transition", lack of market infrastructure, lack of investment in cultural construction, the lack of long-term investors; there are external reasons, the valuation of the international system of China's interference with market pricing, led to The lack of centripetal force of the market. In 2008, from management to enhance the steady development of market mechanisms, including the tax take, finance, banking, state-owned capital in areas such as the comprehensive measures. In the second half, according to the central domestic and international situation changes decisively to adjust macro-economic policies, declared a moderately loose monetary policy and proactive fiscal policy. Overshooting in the capital markets, has entered the recovery phase of the rise. China's capital markets experienced in the past year after a big adjustment, and once again gain the experience and lessons. One of the most fundamental one is to firmly take our own road, resolutely safeguard national sovereignty and economic sovereignty of the capital market. China's capital market is to eventually serve the people of China. China deepening reform and opening up as an important carrier, China's participation in economic globalization as a "platform for dialogue capital," the capital market should also take on the allocation of resources to carry out internal and external value of the historical mission statement. As the China Securities Regulatory Commission Chairman Shang Fulin said, the long-term, stable and healthy development of China's market will not shake the foundation to achieve long-term sustainable development path has not changed. Standing on the reform and opening up 30 years of space-time coordinates of the point, we should firmly and vigorously develop the capital market so that it serves its own people's beliefs, unswervingly push forward the healthy development of the long-term capital market!