The Stock Exchange Executive Council (SEEC; ) of the

People's Republic of China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's List of countries and dependencies by population, most populous country, with a Population of China, population exceeding 1.4 billion, slig ...

was established to improve the efficiency of the

securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...

market in

mainland China "Mainland China" is a geopolitical term defined as the territory governed by the China, People's Republic of China (including islands like Hainan or Chongming Island, Chongming), excluding dependent territories of the PRC, and other territorie ...

. According to research by Nottle (1993), the re-emergence of securities markets commenced under the introduction of the economic reform programme. The initiative was announced by then party Vice Premier

Deng Xiaoping Deng Xiaoping (22 August 1904 – 19 February 1997) was a Chinese revolutionary leader, military commander and statesman who served as the paramount leader of the China, People's Republic of China (PRC) from December 1978 to November 1989. Aft ...

in 1978; under the plan market forces would be brought to bear on the

Chinese economy The People's Republic of China has an upper middle income developing mixed socialist market economy that incorporates economic planning through industrial policies and strategic five-year plans. —Xu, Chenggang. "The Fundamental Instituti ...

and China's " doors would be opened" to foreign capital and

entrepreneur Entrepreneurship is the creation or extraction of economic value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values t ...

s. Under this economic reform, a number of experiments have been conducted over the part decades in order to facilitate the development of securities markets. # September 1984, the first

joint stock company A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareholders a ...

and then one was commenced in

Shanghai Shanghai (; , , Standard Chinese, Standard Mandarin pronunciation: ) is one of the four Direct-administered municipalities of China, direct-administered municipalities of the China, People's Republic of China (PRC). The city is located on the ...

in 1985 and in

Shenzhen Shenzhen (; ; ; ), also historically known as Sham Chun, is a major sub-provincial city and one of the special economic zones of China. The city is located on the east bank of the Pearl River estuary on the central coast of southern provi ...

in 1987 # Another experiment consisted of establishing securities trading markets such as,

over-the-counter Over-the-counter (OTC) drugs are medicines sold directly to a consumer without a requirement for a prescription from a healthcare professional, as opposed to prescription drugs, which may be supplied only to consumers possessing a valid prescr ...

(OTC) market for

shares In financial markets, a share is a unit of equity ownership in the capital stock of a corporation, and can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Share capital refers to all of the shares of ...

and bonds was established in 1986. To further improve the

economic efficiency In microeconomics, economic efficiency, depending on the context, is usually one of the following two related concepts: * Allocative or Pareto efficiency: any changes made to assist one person would harm another. * Productive efficiency: no addi ...

of the Chinese securities markets, eventually the Stock Exchange Executive Council (SEEC) was formed in March 1989 to create a nationwide treasury bond trading system ( Securities Trading Automated Quotations System (STAQs) which was established on December 1990.

References

*''The Europa World Year Book'' *''The development of China's stockmarket, 1984-2002: equity politics and market institutions'' (Stephen Paul Green, 2004) *''Privatizing China: the stock markets and their role in corporate reform'' (Carl E. Walter, Fraser J. T. Howie, 2003) *''China's capital market'' (Yebi Hu; Chinese University Press, 1993) *''Monetary and exchange system reforms in China: an experiment in gradualism''

External links

Securities Association of ChinaChina Securities Network
Stock exchanges in China Financial regulation in China {{china-stub

See also

References

External links