Excerpts from Geng Liang remarks to WFE 50th General Assembly in Paris
For WFE, the year 2010 is a memorable year: it is the 50th anniversary year of the Federation. For Shanghai (SSE) and Shenzhen Stock Exchange (SZSE), two exchanges in China, the year 2010 is also a memorable year. Two months from now, it will be the 20th anniversary of the founding of the Shanghai and Shenzhen Stock Exchanges.
In the past 50 years, WFE has played a positive role in promoting the development and progress of global exchanges, as well as the global capital markets. Since SSE and SZSE joined the WFE in 2002, we have learnt many advanced experiences from elsewhereby communicating and cooperating with member exchanges.
For many years, Shanghai Stock Exchange has had a dream of "blue": that is to develop SSE to be a standardized, open and dynamic blue-chip market, supported, encouraged and assisted by counterparts from around the world in all aspects of its market businesses. With the great efforts made in these 20 years, the market cap of SSE amounts to 1.6 trillion RMB yuan, which represents an increase of 5.5 times since 2005. Average daily turnover is about 110 billion RMB yuan, an increase of 12 times over 2005 levels.
Over the last five years, the Shenzhen Stock Exchange has also made tremendous achievements. A multi-tiered capital market structure has been set up successfully with a combination of main board, SMB segment, and Chi-next markets.
What power has been pushing the Chinese capital markets onto such a rapid growth track in the past 20 years, especially in the recent five - six years? To conclude, it is the reform and opening-up policy of the Chinese government, it is the reform and transparency measures taken by the Chinese regulatory body, the CSRC. Of course, it also includes our own practice and implementation of the above policies.
Finally, I would like to say that the Shanghai and Shenzhen Stock Exchanges are willing to strengthen the cooperation, communication and mutual complementarity with all their fellow exchanges, so as to have a faster, better and more standardized marketplace development together with all World Federation of Exchanges members.