The securities market in China is stepping on a healthier way, said Wu Jinglian, one of the most prominent economists in China on Feb 15.
According to his speech on the Symposium of China's Listed Companies in Hong Kong, China Securities Regulatory Commission has strengthened itself in making regulations, supervising, and restricting law violating conducts since 1999, and therefore the market is going on more smoothly.
Wu urged the listed companies in his speech entitled To Perfect the Management Institution of Listed Companies to perfect their management in 7 respects:
First, to finish the solution of 'only one major shareholder';
Second, to establish independent institution for state-owned share rights;
Third, to standardize the relationship between the parent company and its subsidiaries with the state the dominant shareholder
Fourth, to optimize the working process of the directorate;
Fifth, to strengthen the supervision to the administration departments by the directorate;
Sixth, to motivate the managers with a reasonable payment;
And lastly, to develop the securities market on standardization.
The benchmark of a valid securities market can be used to measure the performance of the managers of securities companies, to strengthen the supervision and motivation, and as a result to make the management of a company more effective.
With the nickname of "Market Wu" in China, Wu Jinglian's remarks of the problems of the securities market in China has aroused wide attention and debates.
(People's Daily 02/16/2001)
