ABSTRACT
In the first half of 1997, the market for Shanghai B shares rose steadily and simultaneously in various sectors. The bankruptcy of Japan’s Yamaichi Securities, which was closely connected with the Shanghai B share market, and the collapse of Hong Kong’s Peregrine Securities, caused panic. The Shanghai A share market, with a much greater size, faced the same global financial crisis and very strong expansionary pressure. Affected by the Southeast Asian financial crisis and the tremors of the Hong Kong stock market, the Shanghai A share index fell to its lowest point of 1,025, a one-time drop of 500 points. A bull market will not show up in the Shanghai B share market because of the unpredictability of the global stock markets and the limited funds. Some changes may take place in the Shanghai B share market with the fluctuation of the stock markets.
