ABSTRACT
The reform and opening up policies that China began to implement in the late 1970s initiated a shift in China’s planned-economy system towards a market economy. China’s capital markets were generated as a result. The development of those markets brought on major changes in socioeconomic systems which served as a precipitating force behind changes in ownership systems and changes in the way resources were allocated in general. By now, the development of China’s capital markets since the inception of reform and opening up can be divided into the following three main stages.
