pilot platform: The first batch of listed companies, a total of eight, went public on the Shanghai Stock Exchange in 1990 when China was transforming from a planned economy to a market economy, according to Xinhua China. It was a pilot platform with imperfect designs, so only small and private companies would go public to seek financing, while big and state-owned enterprises SOEs that led the country economic growth enjoyed financial support from banks, Pan said. In hindsight, the development of the A-shares market in the past 26 years well echoed China economic growth and reforms, said Pan, chairman of Nuode Asset Management, and visiting professor at Tsinghua University. The A-shares market hit its first turning point in 1992 when the central government decided to establish a socialist market economy that encouraged joint-stock enterprises. Nine SOEs became joint-stock companies and went public in Hong Kong and other markets. About 400 share-issuing firms were approved, and 37 companies were listed on the A-shares market that year.
(news.financializer.com). As
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