The Restructuring of China's Securities Industry
24 Pages Posted: 12 Mar 2007
Abstract
The recent period of radical change in the environment for China's securities firms has exposed a number of problems those firms are facing. In 2004, China's government responded by embarking on a serious effort of reorganizing and restructuring securities firms. Owing in part to a recovery in share prices, earnings for the industry overall recovered in 2006, but real improvement in the firms' viability remains an issue. In this paper, we analyze the problems in China's securities industry thus far and what may be behind those problems, summarize the restructuring that has taken place since 2004, and project the direction of future developments in China's securities industry.
Keywords: China, securities, share, restructuring
JEL Classification: G24, G28, P34
Suggested Citation: Suggested Citation