Credit and Financial Markets
China’s financial market
has begun to take shape, and various types of financial businesses
have been developed, including stocks, bonds and commercial bills.
The capital loan and negotiable securities markets were gradually
established after 1985. In 1988, transfer markets for treasury bonds
were set up in China’s large and medium-sized cities, and stock exchanges
were established in Shanghai and Shenzhen in 1990 and 1991, respectively.
In 1999, the Shanghai and Shenzhen stock exchanges issued 98 “A” shares
and 117 supporting shares, raising 87.7 billion yuan; the number of
listed companies increased to 976; the total raised foreign capital
reached US$ 610 million by issuing “B” and “H” shares. China issued
1.5 billion yuan of “A” shares that can be converted into bonds. In
1999, 94.1 billion yuan was raised through issuing and selling stocks.
The business volume of stock exchanges in 1999 exceeded 5.000 billion
yuan; and a total of 401.5 billion yuan-worth of government bonds
were issued, and 191.1 billion yuan-worth of government bonds were
cashed. This capital has effectively improved the financial position
of the listed companies and increased the sources of funds for the
technological transformation of the state enterprises.