China's top securities regulator said Tuesday that government
departments are to give greater responsibility to non-governmental
association of the securities industry to improve internal
supervision.
Zhou Xiaochuan, chairman of the China
Securities Regulatory Commission (CSRC), made the statement at
the third gathering of members of the Securities Association of
China (SAC). The association's 111 members represent the majority
of stock companies in China.
"There may be bigger changes in this field than we have expected,"
Zhu said.
The SAC has begun to conduct training courses and grant
certificates to employees in the securities industry, something
which used to be done by the CSRC.
The government expects the association to make an effort to prevent
the industry from being too competitive and to improve
communication between companies and the government.
China's stock market, still in its infancy, Zhou noted, is largely
policy-oriented but the non-governmental association will play a
more effective role in self regulation within the industry
especially as the market grows and becomes more globalized.
The association will introduce securities investment foundation
management companies and consultancy agencies as new members, the
SAC spokesman added.
Moreover, he said, 17 foundation management companies and 81
consultancy firms had applied to the SAC and the total membership
is expected to top 212.
China currently boasts 118 securities companies, 111
securities-related consultancy agencies and 17 foundation
management companies. At the end of last year, securities companies
had assets worth of 581.7 billion yuan (US$70.34 billion), 172
percent more than in 1997. And a total 56 securities funds in China
had run up 93.7 billion yuan (US$11.4 billion).
( July 3, 2002)