June 17, 1999
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| June 17, 1999 | atimes.com | |
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| China China will allow all enterprises to issue B stocks BEIJING - Signs show that the Chinese government will soon allow all kinds of enterprises in the country to issue B stocks so as to actively promote the development of the B stock market. Last month, the State Council decided to cut stamp duty for the trading of B shares from 0.4 percent to 0.3 percent. Not long afterward, the China Securities Regulatory Committee issued a circular to support domestic enterprises' entry into the B stock market to raise funds, saying that all the enterprises in China are allowed to apply for issuing B stocks so long as they conformed to the stated principles and conditions. The Chinese securities market has been developing rapidly in recent years. By the end of April this year, 878 companies have been listed. The total market value of their stocks reached Renminbi 1,967.6 billion yuan, accounting for a quarter of the gross domestic product (GDP). Over 39.82 million accounts have been opened at the securities market. The stocks at the securities market in China were divided into A stocks, B stocks and H stocks. A stocks are issued by domestic enterprises, for trading within the domestic market and with domestic funds. B stocks are issued by domestic enterprises, for trading within the domestic market but with foreign currencies. H stocks are issued by domestic enterprises, for trading on the market outside the mainland of China. Comparison shows that the speed of the development of A stocks has been quicker than that of B stocks and H stocks. So far, 103 Chinese enterprises have been listed on the B stocks market and 43 Chinese enterprises on the H stocks market. Starting from the mid-1997s, the B stocks market in China has been sluggish, with small trading volumes. As a result, rumors have spread that China will abolish the B stocks market. In such circumstances, Chen Yaoxian, vice-chairman of the China Securities Regulatory Commission, delivered a speech in May this year at the '99 China Investment Forum, which was attended by several hundred people including representatives of international investment institutions, Chinese officials and entrepreneurs. Chen reaffirmed that China will continue to actively standardize, foster and develop the B stocks market. He also disclosed that policies towards this end are under study and some concrete measures will gradually be taken. (Asia Pulse/XIC) | |||||||||
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