ABSTRACT
The Shanghai Stock Exchange (SSE) was established in 1990 and the Shenzhen Stock Exchange (SZSE) in 1991. In July 2015, stock markets in Shanghai and Shenzhen fell by 30", and global financial markets took fright. In any economy, the regulatory framework is key for the behaviour and performance of the financial system. Modern financial systems are a complex nexus of organizations, markets and regulators, which together achieve the system's purposes, with varying degrees of success. Slow development of the bond market can be attributed to a complex regulatory regime, with authority over bond issuance distributed between the People's Bank of China, the National Reform and Development Commission and the China Securities Regulatory Commission. While China's main banks are behemoths, they operate in tandem with the "shadows" of the informal banking sector. Then there are the four asset management companies (AMCs) namely: China Huarong, China Great Wall, China Orient and China Cinda.
