Early Stage: 1980-1990 Early Stage: 1980-1990 上Dmx Ding gave Mr John Phelan, president of stock as a gift Second Stage: 1991-1998 Second Stage: 991-1998 Shanghai Stock Exchange(SSE) was established Dec. 9 SATQ System of Automated Trading and uoting) was adopted in Dec 1990 omputerized trading system, automatic matching of buyers and sellers according to In Oct. 992, CSRC was established In April 1993, Tentative Rules on Security Issuing and Transaction"was released Second stage: 1991-1998 Second stage: 1991-1998 No of a shares listed set up in 1992, traded in US dollars on sse and in hk dollars on szse. Individuals and legal persons in the PRC were only allowed to buy and sell a shares, while foreigners and residents of Hong Kong, macau, and Taiwan, could only buy and sell B shares. From February 19th 2001, B shares market became open to PRC residents. No new b shares issued since 2003 as more firms went listed in overseas stock markets a55E54 5-19 Early Stage: 1980~1990 Sample shares in PRC in 1980s 5-20 Early Stage: 1980~1990 On Nov.14th, 1986,Mr. Deng Xiaoping gave Mr. John Phelan, president of NYSE, a share of Feile Acoustics stock as a gift. 5-21 Second Stage: 1991~1998 — Shanghai Stock Exchange (SSE) was established on Nov 26th 1990, and started to operate on Dec. 19th . — SATQ (System of Automated Trading and Quoting) was adopted in Dec 1990 —— Computerized trading system, automatic matching of buyers and sellers according to price and time — In Oct.1992, CSRC was established. — In April 1993, “Tentative Rules on Security Issuing and Transaction” was released. 5-22 Second Stage: 1991~1998 5-23 Second Stage: 1991~1998 — B shares market ◦ B shares was set up in 1992, traded in US dollars on SSE and in HK dollars on SZSE. ◦ Individuals and legal persons in the PRC were only allowed to buy and sell A shares, while foreigners and residents of Hong Kong, Macau, and Taiwan, could only buy and sell B shares. ◦ From February 19th 2001, B shares market became open to PRC residents. ◦ No new B shares issued since 2003 as more firms went listed in overseas stock markets. Second Stage: 1991~1998 — No. of A shares listed 5-24