Bejing - By the end of November this year, the total market capitalization of Shanghai and Shenzhen securities markets had reached 29 trillion yuan and the circulation market value in these two stock markets had neared 8 trillion yuan. The total number of stock accounts had reached 136 million, according to information released from the 2007 China Finance Forum held in Beijing on Tuesday, the Beijing Evening News reported.
Shang Fulin, chairman of the China Securities Regulatory Commission [File photo]
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In 2004, Chinese listed companies had issued 19.6 billion yuan worth of stock dividends, and in 2005 and 2006, related figures rose to 72 billion yuan and 117.4 billion yuan, respectively, said Shang Fulin, chairman of the China Securities Regulatory Commission (CSRC) when delivering a speech at the forum.
He predicts that in 2007, stock dividends issued by listed companies will far exceed the above figures. Over the past three years, the cash dividends issued by listed companies have accounted for 40% of net profits for these companies. Chinese people have made more gains by investing in stock markets, Shang said.
By the end of last November, the total amount of investment raised by Chinese companies in domestic stock markets had reached 1.82 trillion yuan. The fast development of Chinese stock markets not only serves as a boost to the national economy and corporation construction, it also plays a positive role in market resource allocation. By the end of last November, too, 1,532 Chinese companies had gone public in domestic stock markets. With the Bank of China, PetroChina and other large Chinese companies going public, these companies have taken the lead in their industrial sectors in stock markets. At present, 190 small and medium companies have gone public in the SME board. The stock market has become a good way for these companies to expand their business scale and to improve their technological innovation through fund-raising.
