1. Overview of the development of China's capital market China's securities market has gradually grown up during the reform, opening up and modernization drive. It is an emerging market in a developing country.

In 1990, the Shanghai and Shenzhen stock exchanges were established. In just 10 years, China's securities market has achieved rapid development from a regional market to a national market. It has promoted national economic development, technological innovation and industrial structure adjustment.

It plays an increasingly important role and has become an important part of China's socialist market economic system.

As of the end of November 2000, the number of domestic listed companies in my country had increased from 14 in 1990 to 1,063, including 114 domestically listed foreign-invested companies and 52 overseas listed companies; the total market value of domestic listed companies reached 460.6178 billion yuan, with circulating The market value reached 154.9249 billion yuan; the number of investor accounts reached 56.8388 million, of which 26.81 million were institutional investor accounts.

Since 1991, my country's securities market has raised a total of 628.656 billion yuan, including 300.967 billion yuan from A-share issuance, 4.632 billion US dollars from B-share issuance, 17.392 billion US dollars from H-share issuance, and 150.394 billion yuan from A-share allotment. billion, B-share allotment raised US$32.7 billion, and other financing (such as convertible bonds) raised US$4.7 billion.

There are 96 securities companies in my country, more than 2,600 securities trading business departments, 96 securities investment consulting institutions, 106 accounting firms and 304 law firms engaged in securities and futures business.

16 securities companies have completed capital increase and share expansion, becoming the first batch of comprehensive securities companies in my country.

Since the first batch of standardized securities investment funds, Jin Taihe Fund Kaiyuan Fund, was issued and listed on March 28, 1998, large institutional investors have begun to appear in my country's securities market.

Two years later, after additional issuances, new issuances, mergers and other measures, there are currently 33 securities investment funds in my country's securities market, with the total fund scale reaching 54.24 billion yuan.

There are 10 fund management companies and 5 custodian banks.

The investment objectives and investment styles of securities investment funds are becoming increasingly diversified, and fund varieties such as active, balanced, optimized index, and small and medium-sized enterprise growth funds have appeared one after another.

These securities investment funds have absorbed a large amount of idle social funds, initially formed a rational investment concept, and are becoming an important force in promoting the stable development of the securities market.

In line with the rapid development of the securities market, my country's securities regulatory system is also gradually improving.

According to the decision of the National Financial Work Conference in November 1997 and the institutional reform plan of the State Council in April 1998, the securities regulatory functions of various government departments and local governments were assigned to the China Securities Regulatory Commission.

The China Securities Regulatory Commission is the competent authority for the national securities and futures markets. It currently has 9 securities regulatory offices, 2 directly affiliated offices, and 25 securities regulatory commissioner offices in central cities across the country. It directly manages 2 stock exchanges and 3 securities regulatory agencies.

futures exchange.

The establishment and distribution of regulatory agencies have become more reasonable, a three-level regulatory system has been formed, and regulatory power has been further strengthened, providing institutional guarantees for improving the efficiency of resource allocation in the securities market.

With the promulgation and implementation of the "Securities Law", the legal and regulatory construction of my country's securities market has gradually been improved, and the level of standardization has been continuously improved. A legal and regulatory system with the "Company Law" and the "Securities Law" as the core has been initially formed.

2. Development opportunities faced by China’s capital market Although China’s securities market has developed rapidly and achieved great results, it is an emerging market after all. Compared with the mature securities markets of developed countries, there is still a big gap. It has great impact on the national economy.

The potential for development contribution is still far from being realized.

This is both a disadvantage and an advantage.

Today, with the rapid development of market economy, my country's securities market is facing unprecedented opportunities.

First, a good domestic economic environment.

The "Recommendations of the Central Committee of the Communist Party of China on Formulating the Tenth Five-Year Plan for National Economic and Social Development" states that the next 5 to 10 years will be an important period for my country's economic and social development and an important period for strategic adjustment of the economic structure. , is also an important period for improving the socialist market economic system and expanding opening up to the outside world. In the next 10 years, we must strive to double the gross national product compared with 2000.

Under this background, the securities market has a lot of room to play its role. While serving economic development, it will also develop rapidly.

Second, there is a large amount of potential stock market capital supply.

On average, my country's new savings deposits are nearly 1 trillion yuan every year, and the annual A-share market financing is only 100 billion yuan.

Therefore, with economic growth, the potential supply of funds in the stock market is very sufficient, and it is realistic to further increase the proportion of direct financing, which is also in line with the needs of investors.

Third, there is room for further improvement in stock market value.

In terms of securitization rate (the ratio of stock market value to GDP), most developed countries and regions exceed 100%, and the average level of countries around the world has reached 67.43%. However, China’s current securitization rate is only 52.6%, which is lower than the world

Average.

With the rapid growth of my country's economy and the gradual increase in the proportion of direct financing, the stock market value will continue to expand, and the securitization rate of the national economy is likely to increase significantly.

Fourth, financial transaction varieties will continue to be enriched.