2016/10/12 Second Stage: 1991 1998 Third Stage: 19992008 Shanghai Stock Exchang site Index July 1st, 1999: "Security Laws"became effective March 16 h, 2000: A Tutor Period of 1 year required for companied that are going to get listed August 16 h, 2001: From March 2003, one-third of the board members in listed companies should be independent directors. Nov 11th, 2001: stamp tax cut to 0.2% 19-193-1195-119191-201-1-1200-120051 Third Stage: 1999 2008 Third Stage: 1999 2008 delines for Corporate April 29th, 2005: Attempts in integrating Governance in Listed Companies tradable and non-tradable shares (split share Nov, 2002: QFll introduced structure)announced by CSRC August 2004: " Security Laws"revised y 30th, 2007: stamp tax raised to 0.3% SME board launched April 24 h, 2008: stamp tax cut to O1% lanuary 1, 2005: Approval-based IPO Approach Aug. 2008 CSRC required that only listed (enacted in 2001)replaced by Recommendation- companies that distribute cash dividend no less based Approach than 30%of the net income in the recent 3 years Jan 24th, 2005: stamp tax cut to 0.1 are qualified for refinancing Third Stage: 1999 2008 Third Stage: 1999-2008 Traded Securities No. of a shares listed Corporate Bonds Convertibles Closed-end Funds Open-end Funds ETF (Exchange Traded Fund) 1999200020120022003 0520062072008 E SZSE-main board sME Board2016/10/12 8 3-43 Shanghai Stock Exchange Composite Index 0 500 1000 1500 2000 2500 1991-1-11993-1-1 1995-1-11997-1-11999-1-1 2001-1-12003-1-12005-1-1 Second Stage: 1991~1998 3-44 Third Stage: 1999~2008 • Regulations – July 1st, 1999: “Security Laws” became effective – March 16th, 2000: A Tutor Period of 1 year required for companied that are going to get listed – August 16th, 2001: From March 2003, one-third of the board members in listed companies should be independent directors. – Nov 11th, 2001: stamp tax cut to 0.2% 3-45 Third Stage: 1999~2008 • Regulations – January 7th, 2002: “Guidelines for Corporate Governance in Listed Companies” – Nov, 2002: QFII introduced – August 2004: “Security Laws” revised – SME board launched – January 1st, 2005: Approval-based IPO Approach (enacted in 2001) replaced by Recommendation￾based Approach – Jan.24th, 2005: stamp tax cut to 0.1% 3-46 Third Stage: 1999~2008 • Regulations – April 29th, 2005: Attempts in integrating tradable and non-tradable shares (split share structure) announced by CSRC – May 30th, 2007: stamp tax raised to 0.3% – April 24th, 2008: stamp tax cut to 0.1% – Aug. 2008: CSRC required that only listed companies that distribute cash dividend no less than 30% of the net income in the recent 3 years are qualified for refinancing 3-47 Third Stage: 1999~2008 • Traded Securities – A shares – B shares – Corporate Bonds – Treasury Bonds – Convertibles – Closed-end Funds – Open-end Funds – ETF (Exchange Traded Fund) – Warrants Third Stage: 1999~2008 • No. of A shares listed 3-48 472 560 639 705 773 827 823 832 850 854 450 499 494 494 491 484 481 464 455 454 38 50 102 202 273 0 100 200 300 400 500 600 700 800 900 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 SSE SZSE-main board SME Board