Five factors to affect stock market in 2004
( 2004-01-27 14:59) (Xinhua)
The performance of China's
stock market may be affected by government policies on five aspects, market
observers said Monday.
The policy on the management of state-owned assets is deemed asa major factor
contributing to the stock market this year.
The performance of the stock market in 2003 shows a big impact of the
measures for property right management in listed companies and large companies
on the asset reorganization among enterprises.With the deepening of the reform
on the state-owned assets management and supervision system in the new year,
relevant policies are expected to affect the operation of the stock market to
some extent.
To set up the second board is viewed as an essential factor that will have an
impetus to the development of the stock market in 2004.
The Chinese authorities have decided to promote venture investment and build
the second board market, which encourages efforts to establish a multi-layer
capital market system, improve the structure of the capital market, and enrich
products at the capital market.
The policy on initial public offering (IPO) and the reform of the IPO
verification commission system and guarantee system promoted by the national
securities watchdog, is expected to have a significant influence on the issue of
new stocks in 2004. The new policy, made public last month, will also help
guarantee the qualifications of listed companies at the root.
Assets management by securities firms will open a new channel for more funds
to flow into the stock market and will be conduciveto increasing institutional
investors' economic capacity.
The draft amendment to the securities law is expected to be submitted for
examination and approval to the nation's top law-making body in April this year.
The law, which was put into effectin 1999, contains some rules that are no
longer compatible to the development of the stock market, and a revised law will
boost the development of the stock market.
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