China stock Market "5 19" 10 Anniversary Sacrifice

May 19 This year, is "5 19" market 10 Anniversary of the day.　　So far, the Shanghai and Shenzhen stock market market value achieved a substantial increase of 16.1 trillion yuan, has ranked third in the world. Ten years ago May 19, with the clean-up of the OTC market to open the legal financing channels for securities companies, the expansion of Securities Investment Fund pilot series of policies, the Chinese stock market with technology-led, broke a wave of continuation of the market for more than two years. The Shanghai Composite Index broke through the integer pass, hitting a record high of 2,245 points.　　The "5 19" market has become a memory that Chinese investors cannot erase.　　Things changed, 10 years of wind and rain, the 10 normative development, China's stock market, whether from the external environment or from the internal environment has undergone fundamental changes. The change of market and policy in the new situation from "policy-oriented" to "policy guidance" the evolution of the past 10 years, China's stock market movement from "policy-oriented" to "policy guidance", is a very significant changes.　　And this has a turning point of change, in general can be divided into shares reform as a node. 1999-2001, senior leaders said it was necessary to actively use the stock market to stimulate domestic demand and solve the problem of state-owned enterprises.　　Under the policy-led, the Chinese stock market "5 19" the market to explode. In early May 1999, top executives raised 8 points on the issue of stock market development, and the strength of the policy to support the market has not been seen before. May 19, the Shanghai and Shenzhen securities market rose 50 points, 127.56 points respectively, the increase is above 4%. 20th, the major newspapers and periodicals published the China Securities Regulatory Commission to approve the increase in the stock of Xiang Treasury news.　　After the Shanghai and Shenzhen stock market continued to increase in volume, to May 31 The Shanghai Composite Index has breached 1300 points, the average daily turnover of more than 10 billion. Subsequently, a series of stimulus policies were released: June 10, the central bank announced interest rate cuts, July 1 Securities Act was formally implemented, September 8, to allow "three types of enterprises" (state-owned enterprises, state-controlled enterprises and listed companies) to invest in the two-tier market; October 25, The State Council approved the purchase of securities investment funds by insurance companies to enter the securities market often for the "5 19 quotes" of the start, when the SFC chairman of the Zhou Zhengqing recalls: "May 16, 1999, the State Council approved the reform of the stock issuance system, and gradually solve the legal financing channels of securities companies, To allow some qualified securities companies to issue financing bonds, expand the pilot scale of the Securities Investment Fund, and enliven the B stock market to try the 6 key policy recommendations, such as the pilot to allow partial share-shares to repurchase shares, which is commonly said to enliven the market six policies. This led to the famous ' 5 19 ' market. "At that time, the regulator and the party newspaper in the first High-profile statement on the securities market: June 14, when the vice chairman of the SFC Chen Yaoxian talk," The current stock market is a kind of recovery, is the security markets to rectify the norms, showing the growth of a market performance. " The next day, the front page of the People's Daily published a questionFor the "firm confidence standard development" commentator article, affirmed the role and status of the securities market, the current market for good evaluation, and open the market rumors of several big positive policies. June 22, when the SFC chairman Zhou Zhengqing pointed out that at present, China is facing not only a round of market conditions, but a major transition in China's securities market.　　For this hard-won good situation, the market participants should cherish, and jointly promote stable and healthy development of the securities market. These strongly declarative and guiding remarks, as well as the highly targeted policy-intensive launch, play an important role in the sustainable development of the "5 19" market.　　The so-called network technology concept stocks hype is just superficial. June 14, 2001, the Shanghai Composite Index in the plate rushed to the highest level of 2245.44 points. Since then, the official proclamation of the Great bull market, which began in 1999 5 19, has really ended, followed by a four-year bear market tour.　　When the reform began, the market was dominated by the policy period before it became history. May 9, 2005, the SFC chairman Shang Fulin and the SFC under the leadership of the Securities and Futures Commission formally launched the reform, since the new round of great bull market began.　　Unlike the 1999, this bull market is led by the policy to strengthen the basic system construction of markets.　　Since the reform, a-share market has experienced ups and downs, once reached the 6,124 point of the historical high, has slipped to 1664 points of the stage low, but has been emphasized on the strengthening of the market infrastructure to build the direction of the system has not changed. During this period, the interests of large shareholders and the performance of listed companies linked, resulting in improving the performance of listed companies, injecting high-quality assets. By improving operations, listed companies ' profits have risen sharply, instead of waiting for financing in the market.　　At the same time, more outstanding private enterprises, overseas listed companies listed in the domestic market, improve the quality of listed companies. At the same time, the dilution of the control of listed companies, the company's operation involves more stakeholders, increased the risk of directors and senior executives to assume the law, the listed companies a single large "insider control" to form a strong constraint, thus activating the company's governance structure.　　At the same time, the market supervision and accountability mechanism has been further established, and the policy directs the market towards the "three public". The current domestic economic situation is very similar to the 1999, and is affected by the external economic problems.　　The difference is that in this period, the policy does not directly point to the market, but as always, steadily promote the market's basic system construction. The country's policy level and leaders, although also very concerned about the development of the stock market, but the measures taken and statements are also the guidance of the market, rather than as in 1999, directly foil the market atmosphere.　　For example, positive fiscal policy plus moderately easy monetary policy and 4 trillion investment portfolio and a series of policies, are the guide to the development of the stock market.　　However, due to the role of inertia thinking, some people also attributed the current market to the policy-led market, listening to the wind is rain, resulting in serious losses. NoCan be denied that, although the reform has made a decisive victory, the future can be compared with the reform of the basic system is almost non-existent, the future system construction is based on the current system of improvement and optimization.　　Of course, we also have to recognize that marketization is a long-term process, the "emerging and transition" characteristics still clearly Chinese stock market, in the future for a long period of time is difficult to get rid of the brand of policy, but the transition from policy-led to policy guidance. From "policy guidance" to "market-oriented" there is a long way, only the market system is sound, investors mature, the quality of listed companies to improve, "market-oriented" can be achieved. 　　Even then, policy needs to intervene properly in a dysfunctional market, which is the responsibility and obligation of any market economy country.　　It should be noted that in the process of transition to "market-leading", the direct and indirect regulation policy of the stock market should further enhance the predictability, maintain the stability and continuity of the policy, give investors a clear policy expectation, so as to better play the guiding role of the policy to the market. The barometer is no longer distorted. The revolution of the relationship between stock market and macro-economy since 1999, China's economic growth has always maintained an annual average speed of more than 9%, the size of enterprises and economic benefits, national financial strength and comprehensive national strength has been different.　　At the same time, the relationship between macro-economy and stock market operation has undergone revolutionary changes. 1998, China's gross domestic product reached 7.9553 trillion yuan, ranked 7th in the world, ranking the first in developing countries.　　In April 1999, the total market value of Shanghai and Shenzhen was less than 2 trillion yuan, which accounted for less than 25% of GNP. And in 2008 years, China's GNP breakthrough 30 trillion yuan, the world's top 3. As of May 18, 2009, the Shanghai and Shenzhen stock Market market value reached 18 trillion yuan, the securitization rate of more than 60%, this is the stock market after more than a year of deep adjustment figures.　　In September of 2007, the total market value of Shanghai and Shenzhen stock market was over the previous year's gross domestic product, and the asset securitization rate reached 100%. In the past 10 years, China's economic development is staggering: foreign trade export, automobile industry, real estate has become the pillar of economic growth, and strongly driven the steel, petroleum and petrochemical, building materials, cement, electricity, transportation and other industries development; the policy of expanding domestic demand has led the development of tourism culture, logistics　　, the policy of rejuvenating science and technology also makes many high-tech enterprises flourish, and the reformed commercial banks provide a strong financial support for the take-off of economy.　　During this period, China's formal accession to the WTO, successful and high level of the holding of the Olympic Games, successfully claimed and steadily prepare for the World Expo, these "International participation" for our country to promote the level of economic development has played a powerful role in promoting. In the past 10 years, many leading enterprises in China's economic development pillar industry have landed in the stock market successively. This not only strengthened the blue-chip company team, effectively improved the market supply and demand structure, but also made the stock market operation and macro-economic relations have undergone a fundamental change,The stock market really becomes the "barometer" of the national economy. May 1999, Shanghai and Shenzhen stock Market market value of the top 20 stocks, Lujiazui, Shanghai Petrochemical, Sichuan Changhong, deep development, MA Steel shares occupy the top 5, the 5 stocks total market value of 200 billion yuan, accounting for the Shanghai and Shenzhen stock market total market capitalisation ratio of about 10%.　　By May 2009, the total market value of one Chinese oil stock in Shanghai reached 2.4 trillion yuan, which accounted for more than 13% of the total market value of Shanghai and Shenzhen stock market. Around 1999, Shanghai and Shenzhen stock market capacity is small, the market value is low. Coupled with a large number of state-owned shares, corporate shares can not be circulated, resulting in stock price distortion, a high P/E, long-term investment funds difficult to find a suitable investment target.　　In the national economy occupies a leading position of a group of leading enterprises, unable to land in the stock market, the operation of the stock market and the macro-economic disconnect, can not play a "barometer" role. From April 1999 to April 2005, China's gross domestic product doubled, but the stock index is basically in place, investors can not share the fruits of economic development. The stock market downturn also makes its most basic financing function gradually missing, forming a vicious circle.　　Although the Chinese petrochemical, China Merchants Bank, the Yangtze River Power and other large enterprises listed, but the market has caused a great impact on the performance of poor after the listing, Sinopec also a long time below the IPO price. China's stock market has undergone a major institutional turnaround in May 2005. The same month, the central government decisively launched the split share reform, long-term troubled stock market healthy development of the chronic knife. To the end of 2006, after the basic completion of the share reform, the interests of various types of investors began to be unified, management long-term nurturing institutional investors have fully demonstrated their stage.　　The constant entry of funds has allowed the stock market to have a greater capacity space. With the deepening of the share-splitting reform and the improvement of corporate profits brought by the rapid growth of macro-economy, China's stock market began to develop rapidly.　　The total market value of the Shanghai and Shenzhen cities from July 28, 2005 to the 3 trillion yuan higher, to September 7, 2007 more than 23 trillion yuan, asset securitization rate for the first time over 100%, in a short period of two years doubled more than 7 times times. During this period, a large number of large-scale leading enterprises related to the livelihood of the economy, so that the relationship between the stock market and macro-economy tighter, but also allows investors to gradually share the fruits of economic development.　　Asia's most lucrative companies China Petroleum, ICBC, as well as the Bank of China, Shenhua, Chinalco, China Coal Energy and so on debut, the market is greeted with a smile.　　Ten years later, the Shanghai and Shenzhen stock market total market capitalisation has changed radically, the top 20 blue-chip owners. Entering the 2008, the financial crisis caused by the U.S. subprime mortgage crisis brought about a global economic recession, China's economy has also been a great impact, the stock market began a sharp correction.　　In response to this situation, from the end of 2008, China's government to stimulate the economic measures have been introduced and began to show effect, Shanghai and Shenzhen stock market has also achieved a steady rebound. In short, in recent years, China's stock market, either up or down, has followed the macro-economic changes, has drifted away from the real economySmall gunboat, developed into a real economy with the carrier group, really take the national economy "barometer." Stock market supervision find the key to China from the "stormy" history of the United States to "gentle" Shang Fulin "5 19" market fully demonstrated the government policy support of the important effect, but also objectively played the stock market to support the national economy important role. But at the same time, because the whole market mechanism is not mature enough, basic system construction is weak, "5 19" market in win the favor of the vast number of investors at the same time, speculation concept, illegal operation and other irregular situation also doped.　　The Shanghai Composite index reached 2,245 points, with the bursting of the technology network bubble and the pilot of the state-owned share reduction, the market entered a long 4-year bear.　　Looking back over the past 10 years, China's stock market has passed the supervision of the road, there are many worthy of reflection, there are many achievements worthy of pride.　　At that time, with the international experience as soon as possible to rectify the market order, strengthen the expectations of supervision, the very passionate vice chairman of the SFC Smillen "airborne" mainland China Securities Regulatory Commission. In the first year of Smillen's tenure, regulators launched a regulatory storm aimed at strengthening corporate governance.　　China Securities Regulatory Commission promulgated the regulations or regulations on security supervision of 51, more than 80 listed companies and more than 10 intermediary agencies are publicly condemned, administrative penalties, and even case investigation. But the criticism that Smillen is too dogmatic has followed, and while it is not felt that Smillen and management have taken steps to govern illegal practices, a market that continues to fall is indeed worrying.　　The state-owned stock reduction scheme, launched in June 2001, has been considered the most direct cause of the long bear market, which was halted on October 22.　　Smillen eventually worked on September 13, 2004, and her final resignation was due to family reasons. At the beginning of 2003, at the National Securities and Futures Regulatory Conference, the new Chairman of China Securities Regulatory Commission, Shang Fulin, admitted that the SFC had made mistakes in its past supervisory work and stressed that "supervision must be unified", that is, "the strength of the reform, the pace of development and market acceptance , adhere to the regulatory function and regulatory approach to meet the requirements of market development.　　"Shang Fulin led the China Securities Regulatory Commission, the stock market has less" stormy "after the investigation, more pragmatic supervision of the new system, the introduction of new regulations, in this" gentle ", the Chinese securities market" firewall "quietly formed. In the "5 19" and 2000, 2001 bull market, the securities companies first misappropriation of customer security, set up industry, after the illegal commission of Financial management, Republicans arbitrage.　　Around 2003, along with the Great Depression, China's securities industry abuses cluster, further development is facing greater danger. August 2003, the SFC put forward securities companies "three iron Law", that is, prohibit misappropriation of customer transactions settlement funds, prohibited misappropriation of assets entrusted to the management of clients, prohibited misappropriation of customer-hosted bonds. August 2004, the 3-year comprehensive management of securities companies openedBegan。 The SFC has disposed of the south, Fujian, Dapeng, Germany identity 31 high risk companies, clearing 11.53 million accounts, a group of suspected criminal companies and their responsible persons were transferred to public security, judicial Department investigation. 　　While dealing with high-risk companies, the SFC has instructed and supported the reorganization of 27 risk companies. At the end of August 2007, 3 years of comprehensive management of securities companies to achieve success, long-term accumulation of huge risks in the whole industry to dissolve. The financial situation of the whole industry has recovered to a better level in history, and the situation of 4 consecutive years ' loss has been reversed.　　Securities companies embarked on the "compliance" and "health" development of the road. Share splitting is the abuses of Chinese stock market, and it is necessary to promote stock market development. As Shang Fulin took office, the timing of the split share reform gradually matured. It can be said that the split share reform is a historic leap in the development of China's securities market.　　It solves the stock circulation of the listed companies, and the problems of some circulation in China's securities market has entered the whole circulation era. After the reform is completed, with the "Listed companies acquisition management measures", "listed companies incentive management measures", "Listed companies information disclosure management measures", such as the enactment of supporting laws and regulations, listed companies to step up supervision, similar to the Kelon, the Department of Science, DeLong and other related transactions to rob the listed company resources of the case became permanent "　　Ancient History ". For the perpetrators of the wind in the market, the management of severe punishment is the only option. However, today's management in dealing with the relevant cases, the art of law enforcement is not the same. Dealing with CSRC statement is one example. November 2006, CSRC Statement and China International Fund Co., Ltd. began contact to discuss the Angolan projects from concrete structure to steel structure matters. When Ren CSRC Statement Securities Office Deputy Director, securities representative Rogau in the work, learned about information, and people conspire to hype CSRC statement stock.　　In May 2007, the CSRC made an administrative penalty decision on the CSRC statement information disclosure violation; Subsequently, the judicial authorities pronounced Rogau guilty of disclosing the insider information, and other relevant interests were punished. The handling of the case, according to law, the investigation of the time is short, at the same time did not cause huge market fluctuations.　　The severe punishment to the violators, the supervision of listed companies and the "5 19" period, has made great strides forward. Long-term funding has grown up. The six categories of institutional investors found value-driven market today, the Shanghai and Shenzhen stock market market value to achieve a substantial growth of 16.1 trillion yuan, has ranked third in the world. Compared with 10 years ago, the institutional investor team of Chinese stock market from the form to the composition, has undergone a qualitative change, from a single to multiple, from the local to the international, from the weak to the expansion.　　Long-term funds through institutional participation in the stock market has become the backbone of China's long-term stable development of the stock market.　　The data show that as of the end of 2008, all types of institutional investors held a listed a shares of the current market capitalisation accounted for 54.62%, institutional investors into the circulating shares of "controlling shareholders." Fund to become a leader. 199 of the last century8 years, a-share market closed-end fund pilot success. On this basis, in 2000, the China Securities Regulatory Commission issued the "Open Securities Investment Fund pilot scheme."　　September 2001, China's first open-end fund-"Huaan innovation" was born, so that the development of China's fund industry from closed-end funds to open funds historic leap. Since then, the fund varieties increasingly rich, bond funds, hedge capital preservation funds, money funds, index funds, emerging, basically covers the International fund varieties. 　　At the end of 2002, China's first Sino-Foreign joint fund company was born. As of April 2009, China's fund management companies have 61, Sino-Foreign Joint Fund companies 33, the number of management funds has reached 474.　　According to the Statistics of China Securities Association, as at the end of 2007, the Fund's assets have reached 3.2766 trillion yuan. The Social Security Fund stepped into the market. December 2001, approved by the State Council, Ministry of Finance, Ministry of Labor and Social Security issued the "National Social Security Fund Investment Management interim measures." A year later, in 2002 of December, Social Security fund trustees and investment managers were hammered out. 　　From June 9, 2003 onwards, 6 fund companies managed the Social Security Fund began to buy stocks and related bonds in the level two market.　　From the following years of operation, the Social Security Fund is indeed mission, in the cautious to maintain progress, adhere to the long-term investment principle, basically achieved for the staff "life money" to preserve and increase the value of the goal, and become a a-share market rare stabilizer. The latest statistics show that the Social Security Fund 2009-year position in the first quarter of the chain increased by 8.69%.　　In terms of market value, the first quarter of the Social Security Fund held 181 companies total circulation value of 15.105 billion yuan, and 2008 years at the end of the four-year stock market value of 10.206 billion yuan, the chain increase of 48%. Insurance funds are in step. "5 19" market provides an opportunity for insurance funds to market. In October 1999, the CIRC allowed insurance funds to be indirectly entered into the stock market through funds. To the first half of 2000, a short period of 8, 9 months, the National Investment Securities Fund has reached 9.6 billion yuan.　　The enthusiasm of the investment in the insurance market is evident.　　In October 2004, insurance funds were allowed to go directly into the market, and since then, insurance funds have been allowed to operate independently, the A-share market opened the door to the insurance funds completely. From the latest statistics, the insurance company at the end of the quarter, the stock position of 0.46%, but the market value of the chain strength increased 38.02%, apparently fighter, profitable.　　In addition, the CIRC spokesman Sanli recently revealed that the first quarter of the investment in insurance funds accounted for 1% of the same period of 2008 (9%), the use of capital gains as much as 43.3 billion yuan. The QFII came from afar. November 2002, the SFC and the central bank issued the "qualified foreign institutional investors in the management of securities investment interim measures"; in December, with the approval of the China Securities Regulatory Commission, the Shanghai and Shenzhen stock exchanges issued the "qualified foreign institutional investors securities trading implementation rules", QFII formalStart。　　Then, in March 2003, the QFII investment rules were clear; in May, Swiss bank, Nomura Securities, the first batch of qualified foreign institutional investors, July 9, Baosteel shares, on the Port box, Sinotrans Development, ZTE all income UBS investment in the first list of a shares. After more than 3 years of trial, the QFII management system was fully refreshed on September 1, 2006.　　The newly revised "Measures for the administration of securities investment in qualified overseas institutional investors", not only to the long-term foreign funds to reduce the QFII threshold, while allowing the QFII in their own name directly open a securities account, and pension funds, insurance funds, mutual funds and other long-term funds lock regularly from more than 1 years to reduce to 3 months.　　According to the latest statistics of China's Securities Regulatory Commission, as of April 2009, QFII membership has reached 79, and the board has raised the total qfii quota by twice times to $30 billion, based on the original 10 billion dollars. Securities companies to open the territory of Xinjiang. From the date of a a-share market, securities companies have been the backbone of the stock market.　　and the supervision of securities companies has been a major work of the SFC. In 2002, the China Securities Regulatory Commission has promulgated the "Management measures for security companies", "the rules for the establishment of foreign equity securities companies", through integration, increase capital and other channels, securities companies to strengthen the strength and enhance competitiveness.　　The first joint venture securities company-----China-Europe International Securities Co., Ltd. was established in the same year by the Hunan Securities and Lyon Securities. In addition to corporate governance, brokerage business expansion in the next few years continue to make progress.　　A series of policy measures have opened up a new profit growth point and a wider range of business space for securities brokers, improved the living environment of securities firms, and injected more vigor into the A-share market.　　Relevant information shows that by the end of November 2008, the total assets of 106 securities companies 1.2 trillion, net capital of 320.5 billion yuan, the management of customer assets of 4.26 trillion yuan, the cumulative net profit of 43.3 billion yuan. Enterprise annuity work silently.　　The process of corporate annuity in the market does not seem to be as much of a concern as the previous few. As early as April 2004, the Ministry of Labor and Social Security, the China Banking Regulatory Commission, the China Securities Regulatory committee and the China Insurance Regulatory Commission and other four jointly issued the "Enterprise Annuity Fund Management trial measures."　　The scheme has been implemented since May 1 and the "Trial of Enterprise Annuity". June 13, 2006, Yi-da Fund company's first enterprise Annuity fund officially began the next single transaction, became the first official entry into the Enterprise Annuity Fund.　　Immediately South Fund News, its two enterprise annuity will also be in the market before the end of June.　　The data shows that the annual growth of enterprise annuity in China is 80 billion-100 billion yuan, according to the proportion of investment shares is not higher than the annuity net assets 20% calculation, annuity investment in the stock market capital of about 20 billion yuan. Institutional investors, with their strong capital strength, strong risk-resisting ability and mature investment concept, have always been regarded as the fixed Poseidon needle in stabilizing the market, and the fostering of institutional investors is also regarded as a stabilizing market.Manager。 Over the past more than 10 years, China's institutional investors have made great strides and are gradually becoming the dominant force in the capital market. However, compared with the mature market institutional investors, there are still some problems such as imperfect product structure, single organization structure, immature management concept and insufficient risk management ability of the institutional investors in China. To develop institutional investors vigorously is still the strategic content of reform and development in the capital market for a long time.