Privatization in China: The Securities Market and Its Role in Corporate Reform

Author: Huo Kang
Publisher:
Publish Date: 2005-03-01
Features: The securities market is one of the most challenging aspects to interpret in the process of China's economic reform, and the book Privatization in China lifts the veil on the mysteries of China's securities market. This book offers a comprehensive and in-depth study, making it a must-read for foreign investors seeking to enter China's securities market after China's entry into the WTO. In fact, any Chinese student studying the history of contemporary China's economic development will benefit greatly from studying this book. — Catherine Gilbert, Editor of China Economic Review, U.S.-China Business Council
Mr. Huo Kang and Mr. Hou Wei, combining their rich practical experience, have presented this complex and highly significant topic in a brilliant manner. The book contains a wealth of valuable qualitative and quantitative analysis, reflecting the authors' profound knowledge. The writing style is engaging, and the book is filled with insightful observations. It is an indispensable read for any investor considering investing in mainland Chinese enterprises. — Professor Peter Nolan, Judge Business School, University of Cambridge
When discussing China's economic reform and its rise in the global economy, the development of the Chinese stock market stands out as the most remarkable aspect. However, unfortunately, there is a profound lack of understanding of this topic. In this book, the two authors, Huo Kang and Hou Wei, provide a thorough explanation of the extraordinary evolution of the securities market in China, a country with a lack of private property development history and a traditional economy. As seasoned market participants, the authors draw on their extensive and insightful personal experience to offer readers the latest insights into Chinese securities trading, corporate restructuring, and the process of company listings.
Beyond the broader context, the book is also captivating in its vivid descriptions of the long-term performance of various market participants and listed companies. It addresses several core issues currently facing the market, such as the severe imbalance between tradable shares and non-tradable shares. The book also delves into the intricacies of how certain institutions and market giants, driven by self-interest and indifferent to the interests of retail investors, manipulate and monopolize the market.
This book is not only a highly valuable historical overview but also goes deeper to explore and argue that the spontaneous development of the stock and stock market since the early 1980s successfully pushed the government to reform in a direction more favorable to further market development. Perhaps the most astonishing result is that it has been proven that a system designed to ensure the state's absolute control over listed companies has played a rather positive role in the so-called "Chinese-style privatization."