TNAG-2792-FCO40-4031-Relations-between-Hong-Kong-and-China-1993 — Page 111

GF 323

CONFIDENTIAL

17

機密

26.

The

construction and not for

management purposes. They

on a compulsory basis, and

market for bonds has a relatively long

history of development. Various types of bonds were issued by MOF, specialised banks, investment companies and major enterprises long before 1980. These issues were initially

designed to finance capital

macro-adjustment or monetary

were traditionally sold circulation and trading were not allowed. Since 1984, a system involving underwriting by financial institutions had evolved. Trading in bonds was also allowed. By end-1991,

the outstanding value of bonds issued by government agencies amounted to Rmb 97.3 billion.

27.

As regards shares, the earliest issues were made in 1984 by a number of joint stock companies in Beijing and Shanghai. Steps were subsequently taken to set up stock markets in Shanghai and Shenzhen, leading to their formal

establishment in 1990

three main types of

shares and H shares.

investors in China.

for subscription

The

and 1991 respectively. There are shares outstanding, viz. A shares, B

All A shares are confined to domestic

The issuance of B shares, which are by foreign investors only, began in 1992. issuance of H shares, which are listed and traded on

the Hong Kong Stock Exchange, started in mid-1993. At present, two enterprises from each of the provinces and autonomous regions (except Xizang, which is left out by its own choice) are allowed to list their shares on either the Shanghai or the Shenzhen Exchanges each year. Previously, only enterprises from Guangdong, Hainan and Fujian were

allowed to do so.

A senior Chinese official has estimated

that for 1993 as a whole, a total of Rmb 5 billion A shares

will have been newly issued. But there are no indications the corresponding figures for B shares and H shares. end-1992, A shares valued at Rmb 7.5 billion were listed

the Shanghai and Shenzhen Exchanges, while another

billion of non-quoted shares were issued to

and to other enterprises. It has recently been

of

at

20

on

Rmb

employees

As

CONFIDENTIAL

機密