The Chinese government on Sunday released its latest strategy on
promoting the stability and development of its capital market.
The nearly 5,000-character strategy document outlines the
guiding principles and tasks to promote capital market development
and plans to improve related policies on the market.
According to the strategy dispatched to provincial governments,
the central government says China will establish a multi-layer
capital market system, including its existing main board market and
a proposed second board market for venture capital, and markets for
corporate bond and futures products.
Under the strategy, the central government plans to regulate the
operation and governance of listed companies in various ways,
including an improved management system on share issuance.
China will also boost the development of intermediate services
for the development of capital markets and increase its supervision
and regulation of the markets through a better legal system and
capital market credibility system, according to the strategy.
As part of its nine-point strategy, the central government calls
on regional governments for coordinated efforts to prevent and
control market risks when formulating policies involving capital
market so as to create sound environment and conditions for the
stable development of the market.
China will continue its efforts to open up its capital market to
overseas investors, and honor its World Trade Organization commitment
on the securities sector, according to the document.
(Xinhua News Agency February 2, 2004)