The International Symposium on "Chongqing / West China Development and the Capital Market" was held on June 19, 2001 in Chongqing, the most populous city in China. 80 experts including Anthony Neoh, the chief advisor to the China Securities Regulatory Commission attended the symposium.
Dr. Herkman, one of the Nobel Price winners of economics, iterated the importance of human resources. According to him, the developing countries, especially China, is used to focusing attention to the investment in capital form, such as building reservoirs, skyscrapers, which is less productive than talents in high technologies. Human resources play a very crucial role in the exploit of capital market, particular in the financial capital market, for they are supplementary to each other.
As for being a speculator or a shareholder in the stock market, in the eye of Neoh, quite a few people would rather be the former than the latter. According to them, the stock market is a dangerous place where speculation is safer than investment. Therefore there are two extremes in the market: some would deposit their money in the banks or buy T-bonds, which seems safe for them, while some others gamble the money in the stock market for high profit regardless of the risks in the market. Very few people are willing to entrust their money to the funds, which is therefore in low.
However, the situation will change in five years. Investors will eventually choose funds as the investment tool.
The merger of the A and B share markets will not happen unless foreign investors are allowed to enter the A share market. The B share market will need four or five years to match the A share market, deemed Neoh.
(People's Daily 06/22/2001)
