The Myth of the China Stock Market

Across China, many look at Shang Fulin as a savior. The new head of China's Securities Regulatory Commission (CSRC) takes the helm in the midst of an 18-month bear market, one caused by government policies--or so conventional wisdom has it. His challenge will be to resist the temptation to seek short-term popularity, recognizing instead that China's stock market must endure short-term pain to win long-term gains.

Eight myths cloud debate over stock market policy in China. Mr. Shang's job will be easier if each is dispelled:

#1. China's stock market has grown extremely large, extremely quickly. At the end of 2002 the official capitalization of China's stock market was $458 billion, making it the eighth largest in the world--an apparently astounding achievement given where China was a decade ago.

To continue reading, please log in or enter your email address.

Registration is quick and easy and requires only your email address. If you already have an account with us, pleaseĀ log in. Or subscribe now for unlimited access.

required

Log in

http://prosyn.org/5wco7Rh;