Chinese and Western stock markets: international influences and development
INTRODUCTION Stock exchanges are not new to China. They existed there prior to 1949 (when the People's Republic was founded). In the early 1980s, after many years without a stock market, China began once again to issue securities. It was not until late 1989, however, that securities received serious attention from the Chinese government. The consequent rebirth of the Chinese stock exchanges in Shanghai and Shenzhen, in 1990 and 1991 respectively, indicates that government attitudes are turning away from a highly centrally planned economy towards a market-oriented economy. The benefits of stock exchanges are becoming increasingly recognized by the Chinese government, which continues to offer them its support. In this Chapter the structure of the modern Chinese stock markets is compared with that of mature securities exchanges in the West. The focus is on administrative problems faced by Chinese markets and the measures available to alleviate them.