Shanghai Stock Market

China's financial market has begun to take shape, and various types of financial businesses have been developed, including stocks, bonds and commercial bills. The capital loan and negotiable securities markets were gradually established after 1985. In 1988, transfer markets for treasury bonds were set up in China's large and medium-sized cities, and stock exchanges were established in Shanghai and Shenzhen in 1990 and 1991, respectively. In 1999, the Shanghai and Shenzhen stock exchanges issued 98 "A" shares and 117 supporting shares, raising 87.7 billion yuan; the number of listed companies increased to 976; the total raised foreign capital reached US$ 610 million by issuing "B" and "H" shares. China issued 1.5 billion yuan of "A" shares that can be converted into bonds. In 1999, 94.1 billion yuan was raised through issuing and selling stocks. The business volume of stock exchanges in 1999 exceeded 5.000 billion yuan; and a total of 401.5 billion yuan-worth of government bonds were issued, and 191.1 billion yuan-worth of government bonds were cashed. This capital has effectively improved the financial position of the listed companies and increased the sources of funds for the technological transformation of the state enterprises.