This unique book examines the re-emergence of a securities market in the People's Republic of China, providing a comprehensive analysis of the market forces that are transforming China's centrally planned economy. The authors provide answers to the key issues such as: Why did a securities market develop in China? How do market practices compare with those in other countries? What are the major difficulties encountered in the development process of the securities market, and what growth potential does the Chinese securities market have? Based on Dr. Xia's comprehensive survey of officials at Chinese securities issuing companies, government policy agencies, and stock exchange centers, the authors offer a comprehensive report on the investment climate in China and its future.

After reviewing briefly the emerging securities markets of other developing countries and the impact of the international debt crisis, the authors examine the economic reforms in China and their impact on China's business climate. An in-depth discussion of financial sector developments, the regulatory framework and scope of the securities market, and a profile of market participants precedes a comprehensive examination of the type and nature of bond and stock issuing activities. The operations of securities trading centers, including secondary markets and, in particular, the Shanghai Exchange, is explained in detail with the conclusion offering unique insights into the development prospects of these markets. Essential to all investors in China, this book is also an important source of information for academics, researchers, and business executives.

Written for international business managers and executives, this book offers a comprehensive and authoritative discussion of foreign direct investment in the People's Republic of China. The authors note at the outset that although the events of Tiananmen Square brought both trade and investment to a virtual standstill, new investment is now again flowing into China (but at a guarded pace). For those wishing to pursue the numerous opportunities that still exist, this volume offers a full analysis of the risks involved, a thorough treatment of the different forms of investment activities in China, complete coverage of China's investment policies and incentives, and specific case studies of foreign direct investment in China.

The authors begin by providing an overview of the Open Door Policy and China's economic and managerial systems. Next, they discuss special economic zones and open cities; investment policies, such as flexible foreign ownership and choice of investment location; new incentives after 1986; and investment motivations. The modes of foreign investment covered include equity joint ventures, contractual joint ventures, wholly foreign-owned enterprises, joint oil exploration, compensation, and trade. Separate chapters analyze foreign investment inflows, identify the organizations involved in foreign investment, describe investment negotiation and approval procedures, and provide a detailed example of a joint venture feasibility study. Three case studies and an evaluation of the outlook for future foreign investment in China complete the volume. Numerous explanatory tables and figures amplify points made in the text. Two appendixes provide a sample contract and articles of association for joint ventures in China and the regulations for development and opening of the Shanghai Pudong New Area. A third appendix lists the rules for the implementation of Chinese law on wholly foreign-owned enterprises in China.