Chinese Securities Markets' Current Status and Future Outlook

In terms of size, Chinese securities markets now rival their counterparts in developed countries, but they still differ substantially from Japanese, European, and American markets in two respects. First, securities settlement and clearing is extremely centralized in China. Second, Chinese markets have yet to develop much diversity of investment instruments. Nonetheless, Chinese securities markets will surely evolve toward convergence with developed countries' markets through changes in government policy and institutional and individual investor behavior.

lkr70_201002_sm.pdf