2016/10/12 Second Stage: 1991"1998 Second Stage: 1991"1998 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 en to pRc residents No new b shares issued since 2003 as more firms Second stage: 1991 1998 Second Stage: 1991 1998 No. of listed B shares Market Development 1993-1998 (in Billion Yuan 「a过=过4 [99 85s 10.79 348d 1757 Second Stage: 1991"1998 Second Stage: 1991 1998 Limit-up and Limit-down in SSE Limit-up and Limit-down in SZSE B9s290 Bn25199 6Novl8.990 bec. 14.- a.1, 1991 eb8№y20.192 n2199|JAu6191 992Dec15,996 bec. 16. 1996-present 6.1996-presen 72016/10/12 7 3-37 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 3-38 Second Stage: 1991~1998 • No. of listed B shares 3-39 0 9 21 33 35 41 43 51 1 9 19 24 34 43 51 54 0 10 20 30 40 50 60 1991 1992 1993 1994 1995 1996 1997 1998 SSE SZSE Second Stage: 1991~1998 Financing With A shares Financing with B shares No. Of Investors (million) Total Market Cap. Market Cap. Of Tradable Shares Market Turnover Market Cap. as % of GDP 1993 27.64 3.81 8.35 354.15 86.16 362.72 10.20% 1994 9.98 3.83 11.08 369.06 96.89 812.76 7.98% 1995 8.55 3.34 12.94 347.43 93.82 403.65 5.94% 1996 29.43 4.72 24.22 984.24 286.70 2133.20 14.50% 1997 82.59 10.79 34.80 1752.90 520.44 3072.18 23.44% 1998 77.80 2.56 42.60 1952.18 574.54 2352.73 23.13% 3-40 Market Development 1993-1998 (in Billion Yuan) Second Stage: 1991~1998 • Limit-up and Limit-down in SSE *Different limit-ups and –downs to stocks. “5.21” soaring up 3-41 Duration Limit-up Limit-down Nov.26-Dec.18, 1990 3% 3% Dec.19-Dec 26, 1990 5% 5% Dec.27-Dec.30, 1990 1% 1% Dec.31,1990-Apr. 25, 1991 0.50% 0.50% Apr.26-Feb.17, 1992 1% 1% Feb. 18-May 20, 1992 1%-5%* 1%-5%* May 21, 1992-Dec 15,1996 None None Dec.16, 1996-present 10% 10% 3-42 Second Stage: 1991~1998 • Limit-up and Limit-down in SZSE Duration Limit-up Limit-down May 29-June 17, 1990 10% 10% June 18-June 25, 1990 5% 5% June 26-Nov. 18, 1990 1% 5% Nov.19-Dec.13, 1990 0.50% 5% Dec.14,1990-Jan.1, 1991 0.50% 1% Jan.2, 1991-Aug.16, 1991 0.50% 0.50% Aug.17,1991-Dec. 15, 1996 None None Dec.16, 1996-present 10% 10%