Shang Fulin, Chairman of the China Securities Regulatory Commission

The capital market has offered indispensable fundamental system for reforming and improving China's market economy. China's capital market has been widely recognized and accepted since it shows increasing effect in perfecting corporate governance, promoting capital formation, and hedging market risks.

Despite the significant improvements, there are still many changes to be made, according to Shang Fulin, Chairman of the China Securities Regulatory Commission. He said that too many individual investors are weakening the overall investment environment, adding that several departments in the regulatory commission are working on new policies that will eventually solve this problem. Shang said that by developing and encouraging institutional investment, the government can create a safer, less risky investment environment.

Institutional investors accounted for 70 percent of China's "A share" stock sales as of the end of November 2010. Securities investments increased significantly in 2010. The practice of laws and regulations of securities investment funds has also offered precious experience for coordinative development of China's asset management industry. China's commodities futures market reached a record trade volume of over $2.1 billion in the first three quarters of 2010, making it the largest investment market of its kind in the world.