BIZCHINA / Finance
10th Five-Year Plan
Updated: 2006-04-18 10:13
The last effort is rooted in launching preparations for the growth
enterprise market. In 2000, the China Securities Regulatory Commission
transferred the hi-tech market to a growth enterprise market, focusing on
the management of research in revealing board-listed company information
, stock issuance and transactions, and the warrantor system, as well as
the coordination between the growth enterprise market and the Chinese
securities market. Currently, the technological and regulatory
preparations of the growth enterprise market are all set.
4. The development of the securities fund
The China Securities Regulatory Commission strengthened its regulation on
the securities fund in 2000. The market scale of the securities
investment fund is now increasing steadily and funds are in good supply.
By the end of 2000, there were 10 fund management companies and five
trustees in China. The number of investment funds has reached 34 among
which 33 have been listed in the Shanghai and Shenzhen stock exchanges.
The total issuance scale of the 34 funds amounts to 56.2 billion yuan,
with an assets value of 84.7 billion yuan, accounting for 10.3 percent of
the current circulating value of the securities market respectively -- up
11.3, 47.3 and 47.1 percent compared to 1999.
5. The distribution of securities traders and their market scale
As a major agent of China's securities market, the distribution and
market structure of securities traders are as follows:
First of all, while the distribution pattern has been formed, great
differences still exist in scale. There have been a total 90 securities
traders from the securities company foundation of the Shenzhen special
zone in 1988 (the first securities trader) until the end of 1997. The
basic pattern consists of three groups: large, national securities
traders, like China Southern Securities, Guotai Securities, Shenyin
Securities, Huaxia Securities, Guangfa Securities and Junan Securities;
provincial securities traders, like Hubei Securities; and other local
traders.
There is a great difference in scale among securities traders in China.
Total assets of the top five traders -- Junan Securities, Shenyin&Wanguo
Securities, Southern Securities, China Securities and Haitong Securities
-- amounts to 33.95 percent of the total, and their registered capital
accounts for 24.52 percent of the total. A total of 66.2 percent of the
capital is held by the top 20 traders, accounting for 71.6 percent of the
total registered capital. It is evident that the trader development in
China is somewhat unbalanced. The assets volume of the smallest trader,
Haikou Finance Securities, is 25.48 million yuan, while the largest in
China, Junan Securities, reaches 17.565 billion yuan in assets volume --
689 times that of the former.
Secondly, the primary market CR5 ("CRn" is the acronym for concentration
ratio: the percentage of related indicators of the top "n" corporations
in the whole industry in terms of assets, registered capital and market
share) covers half of the market with its market share remaining in
balance. One-third of the market is held by the secondary market CR10.
The top five traders will possibly increase their market shares.
Therefore, the unbalanced scales of traders are in accordance with their
unbalanced pattern of market distribution.
Comparatively speaking, the concentration ratio for securities traders in
the primary market, which did not change much between 1997-98, is higher
than that of the secondary market. It demonstrates that the
monopolization and competition pattern of the primary market is balanced.
At present, the environment for securities traders is undergoing
tremendous qualitative changes that are mainly represented by the
marketization of the dealer business, management of trader
categorization, as well as the creation of new business.
The enactment of the Stock Act and the development of organizational
investors, such as the securities investment fund, will possibly change
the functional mechanism of the Chinese securities market. Meanwhile, the
original system of the brokage sales department is now facing a challenge
of networking technology. These changes are bound to result in the
reorganization of the Chinese securities traders group. The original
balance in the primary market will be broken and replaced by a higher
level of balance.
There was an evident increase in 1998 in the concentration ratio of the
secondary market compared to 1997. CR5 increased by 67.64 percent, and
CR10, by 26.19 percent. This shows that the concentration ratio of the
secondary market is on the rise. On the other hand, the increase of the
CR5 over the CR10 demonstrates that market shares of the top five traders
in the secondary market have climbed in 1998, while those of the next
five traders have fallen compared to 1997. This phenomenon reveals the
monopolization of the securities secondary market and the competitiveness
enhancement of the top five traders.
In 2002, 96.2 billion yuan was raised by issuing and stock transferences
-- a decrease of 29 billion yuan over the previous year. Among them, 102
A-shares were issued and 22 stock completed transference, up 78 billion
yuan and down 40.2 billion yuan over the previous year; 16 B- and
H-shares were issued, climbing 18.2 billion yuan -- up 11.2 billion yuan
over the previous year. At the end of the year there were 1,160 listed
companies compared to the current 1,224 listed firms, whose total market
value amounted to 3832.9 billion yuan -- down 11.9 percent over the
previous year.
The Tenth Five-Year Plan of the Insurance Industry and Its Development
1. General market conditions
According to official statistics, the total annual insurance premium
revenue in China was 159.59 billion yuan (US$19.22 billion) in 2000 -- an
increase of 14.5 percent over the same period in the previous year. The
depth of insurance was 1.8 percent -- up 0.1 percent compared to the
previous year; insurance density totaled 127.7 yuan, with an increase of
17.1 yuan from a year earlier.
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