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New Policies
1) Deepening reform of the new stock issuance mechanism, publicized on April 28, included the following:
Further strengthen responsibilities of issuers and related intermediate agencies on corporate governance and internal control construction.
Require accountants and law firms to improve professional capabilities and prevent disclosure of false financial information.
Allow issuers and lead underwriters to freely choose proper time of issuing new stocks in a certain period after obtaining issuance approval.
Industrial price-earnings ratio should be only reference for pricing and enquiry, but should not be guiding prices of new stocks.
Differentiated punishment measures should be made against different behaviors breaking laws and regulations, so that punishment measures are more feasible and deterrent.
2) Drafts for an exit system of listed companies to collect public opinions by the Shanghai Stock Exchange and the Shenzhen Stock Exchange on April 29.
The Shanghai Stock Exchange adds eight standards for exit of listed companies, such as net assets, business revenues, and the trading volume and trading prices of stocks.
The Shenzhen Stock Exchange adds and revises seven standards for exit, such as net assets, business revenues, annual auditing reports, disclosure of annual reports, trading volume of stocks, trading prices of stocks and receiving continual public censure from the exchange.
3) On April 30 the two bourses and China Securities Depository and Clearing Corp. Ltd. announced to cut fees on A-share transactions by 25 percent on average. After readjustment, the brokerage fee will be lowered to 0.0087 percent of the trading volume. Shanghai branch of the clearing corporation lowered the registration fee for A-share transactions in the Shanghai bourse to 0.0375 percent of the trading volume.
Major Reforms to the Chinese Securities Market
October 2009: The growth enterprise board opened, forming a structure composed of the main board, the small and medium-sized enterprise board and the growth enterprise board in Chinese securities market.
2005-07: The split share structure reform was carried out.
2002: A gradually processed market-oriented reform of the investment fund approval system led by the China Securities Regulatory Commission (CSRC) was launched.
December 1998: China promulgated the Securities Law.
1998: The CSRC began to promote development of the investment fund industry.
April 1998: The Securities Commission of the State Council was dismantled, with all its functions as well as the functions of the People's Bank of China to supervise and regulate securities companies being transferred to the CSRC. CSRC becomes the national supervision authority of the securities and futures market.
November 1997: A principle of separating the operation and supervision of banking, securities and insurance sectors was fixed in China's financial system.
October 1992: The Securities Commission of the State Council and CSRC were established, marking that China's securities market is under national uniform supervision frameworks and that a national market has been formed.
August 1991: The Securities Association of China was established in Beijing, becoming a self-regulatory organization of the securities industry.
April 1991: The Shenzhen Stock Exchange launched a composite index and in July the Shanghai Stock Exchange began to launch its composite index.
1990: The Shanghai Stock Exchange and the Shenzhen Stock Exchange were opened.
September 1987: Shenzhen Special Economic Zone Securities Co., China's first professional securities company, was established.
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