Development of the Chinese Capital Market
After an initial phase of euphoria, the Chinese capital market experienced a crisis during the 90s, which resulted in a down-turn of the Shanghai and Shenzhen stock markets that lasted for several years. There was no significant progress in the restructuring and development of the capital market. In 2004, incremental measures were taken by the Chinese government to stabilize, readjust, and consolidate the capital market. With the end of the down-turn phase at the turn of the year 2005/2006, the market requirements for a new stage of Chinese capital market development were met.
China’s stock and bond markets are still at the beginning of their development and have enormous potential due to the size of the market. Dealing in stocks has been a controversial topic in China for ideological and political reasons. An increasing number of actors, however, see capital procurement at stock markets as an attractive alternative to credit. For corporate financing, as an investment alternative to savings book and real estate, and for the stability of the Chinese economy, the further development of the capital market is crucial.
See how we help address these issues:
Asset and Equity Market Reform