Tuesday, January 5, 2010

Top 10 events that effected on China's stock market in 2009

By Yan Pei


Following are the top ten events that have effected on China's stock market in 2009:

• MOF launches structural tax reduction policy

On January 6, China's Ministry of Finance (MOF) announced that it would carry on with the interest income tax exemption on savings deposits and settlement funds in the stock market. The MOF also lowered the stamp tax rate and continued to levy an independent stamp tax on securities trading.

• State Council adopts stimulus packages for 10 major sectors

The State Council approved stimulus packages for the 10 major industries of automobiles, steel, textiles, equipment manufacturing, shipbuilding, petrochemical, electronic information, non-ferrous metals, logistics and light industry. The stimulus plans covered employment, technology upgrades and structure adjustments of these sectors.

• Jan. new loans mark record high of 1.62 trillion yuan

According to statistics disclosed by the People's Bank of China, new RMB loans jumped to 1.62 trillion yuan in January, an increase of 814.1 billion yuan year-on-year. The credit jump in January marked the beginning of a loose credit policy, until the "dynamic fine-tune" of monetary policy proposed by the central bank in early August.

• SZSE issues share listing rules for ChiNext

After the approval of China Securities Regulatory Commission, Shenzhen Stock Exchange formally released the Share Listing Rules for the Growth Enterprise Market, which came into effect on July 1, 2009.

• Guilin Sanjin holds first IPO after nine months of hiatus

After Initial Public Offering (IPO) in the A-share market was suspended for nine months, Chinese drug manufacturer Guilin Sanjin Pharmaceutical Co. became the first company to raise money via IPO.

• SSF holds equivalent to 10% of SOE's initial offerings

On July 19, Ministry of Finance (MOF), State-owned Assets Supervision and Administration Commission (SASAC) and National Council for Social Security Fund (SSF) announced that state-owned companies selling stock publicly for the first time after 2006 must hand over shares equivalent to 10 percent of the total offering to the nation's pension fund.

• Central bank: future monetary policy focuses on dynamic fine-tuning

On August 5, China's central bank said that it would use monetary policy flexibly to guide the moderate growth of loans. The central bank also said it would focus on using market-oriented measures to carry out dynamic fine-tuning, based on the domestic and international economic conditions and price changes.

• China starts review of first batch of IPO on GEM

China Securities Regulatory Commission announced that it would hold the first to the fourth review meeting on applicants for Growth Enterprise Market listing on September 17.

• Central Huijin increase shares of ICBC, CCB and BOC

On October 11, the Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB) and Bank of China (BOC) announced in separate statements that Central Huijin Investment Ltd. had increased its shareholdings in them and planned to further increase its shareholdings in the secondary market in the next 12 months.

• State Council defines regulatory focus in the housing market

The State Council discussed policies and regulations to promote the healthy development of China's real estate market. The State Council announced it will initiate the renovation of hovels in urban areas nationwide as well as state-owned factories and mines. Furthermore, the State Council declared plans to step up supervision of house prices to prevent them from rising excessively in certain cities.

Chinese-story source: Shanghai Securities News