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).
(People's Daily July 3, 2002)
