China's securities market has gradually grown up in the process of reform, opening up and modernization, and it is an emerging market in developing countries. The Shanghai and Shenzhen Stock Exchanges were established on 1990. In a short period of 10, China's stock market has rapidly developed from a regional market to a national market, playing an increasingly important role in promoting national economic development, scientific and technological innovation and industrial restructuring, and becoming an important part of China's socialist market economic system.

By the end of 2000 1 1, the number of listed companies in China had increased from 14 in 0990 to 1063, including 1 14 domestic listed foreign companies and 52 overseas listed companies. The total market value of domestic listed companies reached 4606 1 78 billion yuan, and the circulating market value reached 15492 49 billion yuan; The number of accounts opened by investors reached 56.8388 million, of which the number of accounts opened by institutional investors was 26.865438 million +0.000.

Since 199 1, China's securities market has raised a total of 628.656 billion yuan, including 300.967 billion yuan for A shares, 4.632 billion dollars for B shares, 654.38+07392 billion dollars for H shares, 654.38+050.394 billion yuan for A shares and other financing.

There are 96 securities companies, more than 2,600 securities trading departments, 96 securities investment consulting institutions, 65,438 accounting firms and 304 law firms engaged in securities and futures business. There are 16 securities companies that have completed capital increase and share expansion, becoming the first batch of comprehensive securities companies in China. Since1March 28th, 998, the first batch of standardized securities investment funds-Fund Jintai and Fund Open Source were issued and listed, large institutional investors began to appear in China's securities market. After two years, through measures such as additional issuance, new issuance and merger, there are currently 33 securities investment funds in China's securities market, with a total scale of 54.24 billion yuan. There are fund management companies 10 and 5 custodian banks. The investment objectives and styles of securities investment funds are increasingly diversified, and active, balanced, optimized indexes and the growth of small and medium-sized enterprises appear one after another. These securities investment funds have absorbed a large number of social idle funds, initially formed a rational investment concept, and are becoming an important force to promote the stable development of the securities market.

With the rapid development of the securities market, China's securities supervision system is gradually improving. According to199711June national financial work conference decision and1April 998 the State Council institutional reform plan, the securities supervision functions of government departments and local governments were assigned to the China Securities Regulatory Commission. China Securities Regulatory Commission is the competent department of the national securities and futures market. At present, there are 9 securities supervision offices, 2 directly affiliated offices and 25 offices of securities supervisors in national central cities, which directly manage 2 stock exchanges and 3 futures exchanges. The establishment and distribution of supervision institutions tend to be reasonable, a three-level supervision system has been formed, and the supervision power has been further strengthened, which provides institutional guarantee for improving the efficiency of resource allocation in the securities market. With the promulgation and implementation of the Securities Law, the legal construction of China's securities market has been gradually improved and the standardization level has been continuously improved. A system of laws and regulations centered on the Company Law and the Securities Law has initially taken shape.

Second, the development opportunities faced by China's capital market

Although China's securities market has developed rapidly and made great achievements, it is a new market after all, and there is still a big gap compared with the mature securities market in developed countries, and its contribution potential to national economic development is far from being tapped. This is both a disadvantage and an advantage. With the rapid development of market economy, China stock market is facing unprecedented opportunities.

First, a good domestic economic environment. The proposal of the Central Committee on the formulation of the tenth five-year plan for national economic and social development puts forward that the next five years to 10 will be an important period for China's economic and social development, strategic adjustment of economic structure, improvement of the socialist market economic system and expansion of opening up. In the next 10 year, efforts should be made to double the gross national product compared with 2000. In this context, the securities market has great room to play its role. While serving the economic development, it will also develop rapidly.

Second, there is a large number of potential stock market funds supply. The average annual savings deposit in China is nearly 1 trillion yuan, while the annual A-share market financing is only 1 trillion yuan. Therefore, with the economic growth, the potential capital supply in the stock market is very sufficient, and it is realistic to further increase the proportion of direct financing, which also meets the needs of investors.

Third, there is still room for further improvement in the stock market value. In terms of securitization rate (the ratio of stock market value to GDP), most developed countries and regions have exceeded 100%, and the average level of countries in the world has reached 67.43%, while the current securitization rate in China is only 52.6%, which is lower than the world average. With the rapid growth of China's economy and the gradual increase of the proportion of direct financing, the market value of stocks will continue to expand, and the securitization rate of the national economy may be greatly improved.

Fourth, the variety of financial transactions will continue to be rich. At present, the stock size of China capital market is absolutely dominant, and the bond market is very small. Financial futures and options, warrants, covered certificates and depositary receipts have not yet been developed. In the future, China stock market has great potential in the development of financial products.

Third, the recent development focus of China's capital market

In order to seize the opportunity and meet the challenge, the development strategy of China's securities market at the beginning of 2 1 century should aim at standardization, optimize the structure and enhance the function, improve the market system, vigorously develop institutional investors, better combine standardization with development, better combine sustainable development with innovation, and better combine stimulating market vitality with preventing financial risks, so as to improve the efficiency of resource allocation in the securities market and improve the degree of market internationalization.

The recent development of China's capital market mainly includes the following aspects:

First, establish a multi-level securities market system. Multi-level market system is conducive to forming a reasonable market structure and improving the efficiency of market allocation of resources. Centralized trading is conducive to large and medium-sized enterprises to issue shares to raise funds; GEM mainly serves high-tech enterprises and growth enterprises with development prospects; The electronic board market provides financing services for small-scale state-owned and non-state-owned enterprises, and also provides channels for asset flow of enterprises of various economic types. At present, the focus of multi-level market construction is the Growth Enterprise Market. China Securities Regulatory Commission and Shenzhen Stock Exchange have done a lot of work in the regulations, trading rules and technical preparation of GEM. The GEM market under construction will have the following obvious differences from the main board market: the scale of listed enterprises is relatively small; The operating life of listed companies is relatively short; Adopt the sponsor system; All stocks are in circulation; Limit the minimum shareholding of major shareholders and the conditions for selling shares; Strict mandatory information disclosure system. After the completion of GEM, the electronic board market will also enter the agenda.

The second is to vigorously cultivate institutional investors. Market institutionalization is one of the characteristics of international capital market today. Institutional investors in the capital market mainly refer to pension funds, insurance funds and mutual funds, and some countries also include individual investment trusts and securities proprietary banks. In the history of capital market development, institutional investors have played a huge role. They not only expand the source of funds in the market, enrich the supply of products, but also strengthen the role of corporate governance structure. At present, China's capital market is still dominated by retail investors, securities investment funds have just begun to develop, and they are all closed-end and contractual funds, and open-end funds are still in the stage of scheme demonstration. Since 1999, insurance funds have indirectly entered the market by purchasing securities investment funds, but at present, they cannot directly invest in stocks. Due to system problems, pension funds have not formed a real legal person. It can be seen that the task of cultivating institutional investors is very urgent and arduous. Considering the actual situation of the current market, the main contents of cultivating institutional investors include: cultivating open-end funds, expanding the fund market and fund varieties, gradually changing the establishment and issuance of funds from the approval system to the registration system, and establishing Sino-foreign joint venture fund management companies to improve the technical and management level of domestic funds and enhance their quality and competitiveness; Create conditions for insurance funds to enter the market freely, including insurance funds can be used as sponsors of fund management companies to enter the market through their own fund management companies; Cultivating pension funds is mainly to help these funds enter the market in various forms by establishing personal accounts.

Third, actively promote online securities entrusted transactions. The rapid development of Internet and its related technologies has had a great impact on the trading means in the securities market. Relying on the Internet, online transactions have broken the time and space constraints, expanded the field of customer service, and reduced transaction costs. Online trading in China's securities market started late, and the proportion of online entrusted trading volume to the total trading volume is less than 1%. Moreover, from the actual content, the essence of what we call online transactions is online entrustment, and it is still impossible to conduct real transactions through the Internet. However, this kind of online entrustment is very important to support the development of the securities market in remote areas, especially in the western region. In order to promote the development of online transactions, China Securities Regulatory Commission issued the Interim Measures for the Administration of Online Transactions and the Procedures for the Examination and Approval of Online Entrustment of Securities Companies. It can be predicted that the development of online securities consignment trading will be further accelerated, which is also an important content of business innovation of securities companies at present.

The fourth is to support the listing of financial enterprises. The listing of financial enterprises is an important part of the financial system reform, which has a positive impact on financial enterprises to expand capital, change operating mechanism, improve corporate governance structure and adjust the securities market structure. From the perspective of international capital market, financial listed companies account for a large proportion in the whole listed companies, and almost all large commercial banks, insurance companies and securities companies are listed. In the historical environment of China's imminent accession to the WTO, listing of financial enterprises is conducive to enhancing their competitiveness. The listing of financial enterprises will become an important part of the expansion of the 200 1 China stock market, and it will also help promote the integration of China's capital market into the international capital market as soon as possible.

Fifth, gradually open the securities market. At present, the opening of the securities market has become an important part of China's economic opening to the outside world, and it has become the driving force to promote the development of the securities market itself to a higher stage. The opening of the securities market is the first step. Judging from the requirements of China's entry into WTO, the opening of the securities industry includes the following contents: allowing foreign securities institutions to directly trade B shares by setting up special seats in domestic stock exchanges; It is allowed to set up Sino-foreign joint venture securities companies, fund management companies and other consulting securities service institutions. Foreign investors can hold 33% of the shares in the first year and 49% in three years. Joint venture securities companies can engage in underwriting and brokerage of A shares and all businesses of foreign shares. With the opening of the securities industry, other areas of the securities market will be gradually opened, making China's securities market truly an open international market and providing better services for the rapid development of China's economy. China Securities Regulatory Commission will proceed from the reality of China's securities market, adopt correct coping strategies and measures, actively and steadily promote opening to the outside world, and find an appropriate balance between constantly improving the degree of internationalization and actual regulatory capacity.