the Institution of the Chinese Stock market

The Chinese stock market consists of one regulator, two stock exchanges, one

clearing company, and numerous securities exchange companies. The China Securities
Regulatory Commission (CSRC) and the State Council Securities Committee (SCSC)

were established in 1993. They consolidated in 1998, and the China Securities

Regulatory Commission is now the regulator of the securities industry. The Shanghai
Stock Exchange and the Shenzhen Stock Exchange were established in December 1990.

By the end of 2003, there were 746 A shares and 54 B shares listed on the Shanghai
Stock Exchange and 489 A shares and 57 B shares listed on the Shenzhen Stock

Exchange. By the end of 2003, the Shanghai Stock Exchange had Yuan 2980.5 billion

(70.2%) total market capitalization, while the Shenzhen Stock Exchange had Yuan

1265.3 billion (29.8%) total market capitalization. In March 2000, the China Securities

Depositary and Clearing Company (CSDCC) was established as the central securities
clearing company.