The Chinese government on Sunday released its latest strategy on promoting the stability and development of its capital market.
The nearly 5,000-character strategy document outlines the guiding principles and tasks to promote capital market development and plans to improve related policies on the market.
According to the strategy dispatched to provincial governments, the central government says China will establish a multi-layer capital market system, including its existing main board market and a proposed second board market for venture capital, and markets for corporate bond and futures products.
Under the strategy, the central government plans to regulate the operation and governance of listed companies in various ways, including an improved management system on share issuance.
China will also boost the development of intermediate services for the development of capital markets and increase its supervision and regulation of the markets through a better legal system and capital market credibility system, according to the strategy.
As part of its nine-point strategy, the central government calls on regional governments for coordinated efforts to prevent and control market risks when formulating policies involving capital market so as to create sound environment and conditions for the stable development of the market.
China will continue its efforts to open up its capital market to overseas investors, and honor its World Trade Organization commitment on the securities sector, according to the document.
(Xinhua News Agency February 2, 2004)
