On common development of capital market and local economy
In recalling twenty years’ experiences of capital market, the subjected research, held under the China Securities Regulatory Commission, indicates it might think out various ways in promotion of common development for both capital market and local economy. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
In twenty years’ growth, the capital market has gradually flourished with help of governmental support and the guidance of market mechanism, when in pursuit of the splendid historical process of China’s reform and opening-up, for instance, till the end of June, a total of 1,899 listed firms with market value of 23.78 trillion yuan come out at shanghai and Shenzhen stock market, ranked the third top market in the world and basically match the needs in the nation’s economic development. In the mean time, the matured capital market has given great contribution to the economic society in providing important financial assistance for the national economic construction. Data shows, since the 16th Party Congress, it has realized the accumulation of funds at 4.81 trillion yuan though the method of IPO or refinancing, in addition, 275 listed firms has fulfilled asset reorganization with business amount at 986.7 billion yuan.
All this verifies the irreplaceable function of the capital market in economic growth and social progress for optimization of resource allocation and the prevention of risks.
It has been proved in experiences that capital market has also played an important role in helping local economic growth, for example, Xinjiang has greatly promoted with such support. By the end of 2009, it has seen total market value reached at 302.1 billion yuan, almost 70 percent of the local GDP in the same period. Data shows the local accumulated funds has reached 45.0 billion yuan through the way of IPO, share placement and company bond, which has strongly helped the growth of Xinjiang economy.
In parallel, we must be clear in mind it ought to be based on the national conditions to promote the common growth of both capital market and local economy, especially in the field of regular performance of listed firms, improving their qualities, the management of inside information, etc. since it is an system engineering in the growth of capital market, government at all levels and the related departments should give their great support, and with the function of local securities regulatory commissions, to do well in the construction of environmental condition for better growth of capital market.
