2016/10/12 Third Stage: 19992008 Third Stage: 1999 2008 Stock Market(SSE Composite Index, 000001.ss) Jan/9 bn00 Jan/oI Jan/02 JanAb3 lnv0-4 Jan05 Jan/0s Jan Jan/08 一 Shanghai- Shenzhen Copyright Third Stage: 1999 2008 Fourth Stage: 2009-Present Turnover Ratio The Chinese State Council released the 4-trillion stimulus package plan on Nov 5, 2008 The stock market responded very quickly on the econd day, and recovered by 70% in 8 months, but came into the bear when the government exited the stimulus plan in 2011 ChiNext established in Oct. 200 l9l9s|sss196l991991992020200200x004 Index futures launched in April 2010 Short sell and margin trading started from 2010 Shanghai HK Sock Exchange Connect launched in 2014 Fourth Stage: 2009-Present Fourth Stage: 2009-Present SSE(for stocks) SZSE(for stocks) 40,000 25,000 15000 10000 aTotal Market Cap. Total Turno 20082009 a Market Cap af Tradable Shares Tatal Market Cap. Total Turnover2016/10/12 11 3-61 Third Stage: 1999~2008 • Stock Market (SSE Composite Index，000001.ss) Third Stage: 1999~2008 • Monthly P/E 3-62 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 Jan/99 Jan/00 Jan/01 Jan/02 Jan/03 Jan/04 Jan/05 Jan/06 Jan/07 Jan/08 Shanghai Shenzhen Third Stage: 1999~2008 • Turnover Ratio 3-63 0 200 400 600 800 1000 1200 1400 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Shanghai Shenzhen Fourth Stage: 2009-Present • The Chinese State Council released the 4-trillion stimulus package plan on Nov 5, 2008 • The stock market responded very quickly on the second day, and recovered by 70% in 8 months, but came into the bear when the government exited the stimulus plan in 2011 • ChiNext established in Oct, 2009 • Index futures launched in April. 2010 • Short sell and margin trading started from 2010 • T-bond futures trading restarted in Sept. 2013 • Shanghai HK Sock Exchange Connect launched in 2014 3-64 Fourth Stage: 2009-Present • SSE(for stocks) 3-65 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2008 2009 2010 2011 2012 2013 Market Cap of Tradable Shares Total Market Cap. Total Turnover Fourth Stage: 2009-Present • SZSE(for stocks) 3-66 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2008 2009 2010 2011 2012 2013 2014 Market Cap of Tradable Shares Total Market Cap. Total Turnover