1. Implement Market innovation, Strengthen Enforcement and Promote Standardization Presented by vice chairman, Mr. Geng Liang China Securities Regulatory Commission 12-13 March, 2001, Kuala Lumpur

2. International Backgrounds Global integration Cooperation between regulators Merger or alliance between exchanges Growth enterprise market On-line trading

3. By the end of 2000: Listed companies: 1088 domestic; 52 overseas; 145 in 2000 Capitalization: RMB 4.8 trillion ( 1 USD = 8.3 RMB ), 50% GDP, 25% Investors accounts: 5.8 million Turnover: RMB 6 trillion, 91% Market Statistics

4. Market Statistics (continued) Daily average turnover: 25.3 billion, 94% Composite index: Shanghai: 2073, 51% ; Shenzhen: 635, 57% Max. Volatility: Shanghai: 50%, Shenzhen: 57% Highlights: table market movement, increasing turnover and growing confidence.

5. Latest Developments Increasing direct financing scale Setting up securities investment funds Fostering On-line trading Preparing the establishment of Growth Enterprise Market

6. Latest Developments (continued) Strengthening enforcement Improving corporate governance Permitting B share trading by domestic residence

7. Strengthening regulation Reinforcing enforcement capability Strengthening penalty Enhancing investor education Studying and learning from overseas experiences

8. Going Marketization -- Deregulation Reducing administrative intervenes, playing by market rules while strengthening legislation, enforcement and investor education

9. Going Marketization -- Deregulation (continued) Concrete measures have and about to take: Reform in stock issuance mode Reform in stock pricing mechanism Requirements of risk control management Implementing market innovation Further opening-up

10. Conclusion The Chinese securities market will continue to enjoy rapid developments It will gradually integrate into the world market