Stock Exchange Executive Council
Encyclopedia
The Stock Exchange Executive Council (SEEC) of the People's Republic of China
was established to improve the efficiency of the securities
market in mainland China
.
According to research by Nottle (1993), the re-emergence of securities markets commenced under the introduction of the economic reform programme
. The initiative was announced by then party Vice Premier Deng Xiaoping
in 1978; under the plan market forces
would be brought to bear on the Chinese economy
and China's "doors would be opened
" to foreign capital and entrepreneur
s.
Under this economic reform, a number of experiments have been conducted over the part decades in order to facilitate the development of securities markets.
To further improve the economic efficiency of the Chinese securities markets, eventually the Stock Exchange Executive Council (SEEC) was formed in March 1989 to create a nationwide treasury bond trading system (Securities Trading Automated Quotations System (STAQs) which was established on December 1990.
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
was established to improve the efficiency of the securities
Security (finance)
A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...
market in mainland China
Mainland China
Mainland China, the Chinese mainland or simply the mainland, is a geopolitical term that refers to the area under the jurisdiction of the People's Republic of China . According to the Taipei-based Mainland Affairs Council, the term excludes the PRC Special Administrative Regions of Hong Kong and...
.
According to research by Nottle (1993), the re-emergence of securities markets commenced under the introduction of the economic reform programme
Chinese economic reform
The Chinese economic reform refers to the program of economic reforms called "Socialism with Chinese characteristics" in the People's Republic of China that were started in December 1978 by reformists within the Communist Party of China led by Deng Xiaoping.China had one of the world's largest...
. The initiative was announced by then party Vice Premier Deng Xiaoping
Deng Xiaoping
Deng Xiaoping was a Chinese politician, statesman, and diplomat. As leader of the Communist Party of China, Deng was a reformer who led China towards a market economy...
in 1978; under the plan market forces
Market Forces
Market Forces is a science fiction novel by Richard Morgan, first published in 2004.Set in 2049 in the wake of a global economic downturn called the Domino Recessions, it follows up-and-coming executive Chris as he plunges into the profitable field of Conflict Investment...
would be brought to bear on the Chinese economy
Economy of the People's Republic of China
The People's Republic of China ranks since 2010 as the world's second largest economy after the United States. It has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of...
and China's "doors would be opened
Open Door Policy
The Open Door Policy is a concept in foreign affairs, which usually refers to the policy in 1899 allowing multiple Imperial powers access to China, with none of them in control of that country. As a theory, the Open Door Policy originates with British commercial practice, as was reflected in...
" to foreign capital and entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
s.
Under this economic reform, a number of experiments have been conducted over the part decades in order to facilitate the development of securities markets.
- September 1984, the first joint stock companyJoint stock companyA joint-stock company is a type of corporation or partnership involving two or more individuals that own shares of stock in the company...
and then one was commenced in ShanghaiShanghai Stock ExchangeThe Shanghai Stock Exchange , abbreviated as 上证所/上證所 or 上交所, is a stock exchange that is based in the city of Shanghai, China. It is one of the two stock exchanges operating independently in the People's Republic of China, the other is the Shenzhen Stock Exchange...
in 1985 and in ShenzhenShenzhen Stock ExchangeThe Shenzhen Stock Exchange is one of the People's Republic of China's two stock exchanges, alongside the Shanghai Stock Exchange. It is based in Shenzhen, China...
in 1987 - Another experiment consisted of establishing securities trading markets such as, over-the-counterOver-the-counter (finance)Within the derivatives markets, many products are traded through exchanges. An exchange has the benefit of facilitating liquidity and also mitigates all credit risk concerning the default of a member of the exchange. Products traded on the exchange must be well standardised to transparent trading....
(OTC) market for shares and bondsBond (finance)In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
was established in 1986.
To further improve the economic efficiency of the Chinese securities markets, eventually the Stock Exchange Executive Council (SEEC) was formed in March 1989 to create a nationwide treasury bond trading system (Securities Trading Automated Quotations System (STAQs) which was established on December 1990.
See also
- China Securities Regulatory CommissionChina Securities Regulatory CommissionThe China Securities Regulatory Commission is an institution of the State Council of the People's Republic of China , with ministry-level rank...
- Untraded sharesUntraded sharesUntraded shares or refer to the shares of listed companies that are not allowed to be released by some of the investors within the lockup period...
- Leading stockLeading stockLeading stock , which is usually applied to the stock market of Mainland China and Hong Kong, means stock of a certain company which has leading status in their business field, including scope, market share, market capital, turnover and profit. Sometimes, leading stock may lead or influence prices...
- Economy of the People's Republic of ChinaEconomy of the People's Republic of ChinaThe People's Republic of China ranks since 2010 as the world's second largest economy after the United States. It has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of...
- Economic history of China (Pre-1911)
- Economic history of Modern ChinaEconomic history of modern ChinaThe economic history of modern China began with the fall of the Qing Dynasty in 1911. Following the Qing, China underwent a period of instability and disrupted economic activity. Under the Nanjing decade , China advanced several industries, in particular those related to the military, in an effort...
- Chinese financial systemChinese financial systemChina's financial system is highly regulated and has recently begun to expand rapidly as monetary policy becomes integral to its overall economic policy...
- Banking in ChinaBanking in ChinaChina's banking system has undergone significant changes in the last two decades: banks are now functioning more like banks than before. Nevertheless, China's banking industry has remained in the government's hands even though banks have gained more autonomy...