Capital Market

Since the reform and opening began, China has continuously expanded the capital market by improving the credit and loan mechanism, and developing stock and state debt markets. At the beginning of the 1980s, the reform of the credit and loan mechanism, beginning with “unified plan, multi-level control, connection of deposits with loans, and being responsible for making up differences” developed in accordance with the ratio between assets and debts, and eliminating the limits for the sizes of loans. In order to match this important change, new measures have been adopted, such as re-granting loans, re-discounting, reserve fund rates and making market business public, thus standardizing and strengthening the control and adjustment of the credit and loan market. At the same time, the stock market grew from nothing to become a large-scale stock market, symbolized by the Shanghai and Shenzhen stock exchanges.