∈ merging Stock Markets in the people′s Republic of China By Chen Ji and Steve thomas NEXT YEAR WILL MARK the 2oth Shenzhen. All Chinese share trading was a anniversary of the re-emergence of securities gradually moved to these two exchanges, trading in the People's Republic of China. beginning in late 1990. After I2 years of ISSuance of the first publicly issued stock, stock market in the Far East, third inajor In 1984, the government approved the rapid growth, China again bec the state-owned Beijing Tian-Qiao Depart- Over the past 2o years, Chinas econ- ment Store, which issued a three-year fixed omy has made major advances, growing interest rate stock that resembled a three-year about 9 percent each year and creating a bond in Western financial markets major pool of privately held savings, Beginning in I990, China also some 9. 8 trillion yuan ( permitted the establishment trillion)by the end of 2002 of 24 regional stock However, most of that sav exchanges to trade ings has been deposite the sl in China's banks rather number of new shares than invested in stocks, In late I990, China where it would nor- formally re-estab lished two fully func- i mally go to support tioning national stock the continued growth of Chinese enterprises in need of capital Shanghai and one in the southern Chinese city of There are many reasons for this lack of capital mar British American Tobacco Company in Shangh FINANCIAL HISTORY SPRING 2003 Www. financIalhistory.OrgFinancial History ~ Spring 2003 www.financialhistory.org 28 Next year will mark the 20th anniversary of the re-emergence of securities trading in the People’s Republic of China. In 1984, the government approved the issuance of the first publicly issued stock since 1949. The issuing company was the state-owned Beijing Tian-Qiao Depart￾ment Store, which issued a three-year fixed interest rate stock that resembled a three-year bond in Western financial markets. Beginning in 1990, China also permitted the establishment of 24 regional stock exchanges to trade the slowly expanding number of new shares. In late 1990, China formally re-estab￾lished two fully func￾tioning national stock exchanges, one in Shanghai and one in the southern Chinese city of Shenzhen. All Chinese share trading was gradually moved to these two exchanges, beginning in late 1990. After 12 years of rapid growth, China again became a major stock market in the Far East, third in size after Japan and Hong Kong. Over the past 20 years, China’s econ￾omy has made major advances, growing at about 9 percent each year and creating a major pool of privately held savings, some 9.8 trillion yuan ($1.18 trillion) by the end of 2002. However, most of that sav￾ings has been deposited in China’s banks rather than invested in stocks, where it would nor￾mally go to support the continued growth of Chinese enterprises in need of capital. There are many reasons for this lack of capital mar￾Emerging Stock Markets in the People’s Republic of China By Chen Ji and Steve Thomas British American Tobacco Company in Shanghai