First, reforming the stock-issuing system. Enterprises are free from the restriction of ownership types in issuing and listing stocks. State-owned enterprises, collective enterprises and Sino-foreign joint ventures can all apply for the issuance and listing of stocks. China introduces the following procedures for the issuance of stocks: The company should first file an application. Then it should be recommended by the main consignee and examined by the stock-issuing examination committee. Finally the approval will be granted by the China Securities Regulatory Commission (CSRC). The price of the stock will be fixed in a different way. On the basis of the original system of online price fixing, online price bidding is introduced.

Second, encouraging online securities commission deals. The CSRC published "Temporary Management Method for Online Securities Commission Deals" and "Approval Procedures for Securities Companies Online Commission Deals" in the first half of this year, which provide necessary conditions for the standardized development of online commission deals. So far, over 40 securities companies have submitted their applications for online commission deals to the CSRC.

Third, establishing the Growth Enterprise Market (GEM). This will help create a favorable environment for direct finance by high-tech enterprises and growing medium and small enterprises as well as provide a convenient exit for venture capital. At present, preparatory work concerning the formulation of regulations and systematic development is being stepped up.

Fourth, fostering organization investors. China will set up opening funded experimental units and carry out pilot activities of joint venture fund management company at appropriate time. In addition, the CSRC and the China Insurance Regulatory Commission (CIRC) are jointly applying for approval of the operation of insurance fund by the pilot insurance fund management company so as to let them directly enter the securities market to engage in securities investment activities.

Fifth, supporting the listing of financial enterprises. According to the sources, by the end of July this year, there had been 1,025 listed companies in China with 343 billion capital stock. Their total prices in the stock market reached 4,357.7 billion yuan and circulating prices, 1,413.8 billion yuan. The number of accounts opened by investors hit 52.55 million yuan.

(People’s Daily)