Securities reform was no doubt a milestone in the history of the country's capital market. In the next two years, over 1,300 listed companies had converted their non-tradable State-owned shares into tradable ones.

By the end of 2007, 1,550 companies were listed on the Shanghai and Shenzhen stock exchanges, with a combined market value of 32.71 trillion yuan and accounting for 140 percent of the country's GDP, figures from the CSRC show.

Another major law introduced at the beginning of 2006 brought more sophistication into the capital markets once marked by embezzlement and lack of transparency.

The Company Law and Securities Law, enacted on Jan 1, 2006, were aimed at increasing corporate governance, creating more transparency and putting more power in the hands of shareholders. Seventy related rules and regulations have been published since the enactment of this law, smoothing out the market's rough edges from its early days.

 

Editor:Du Xiaodan