Official: China to restart new stock issuance after reform

Special Report: Boao Forum For Asia
2009

BOAO, Hainan, April 17 (Xinhua) -- Yao Gang, vice
chairman of the China Securities Regulatory Commission (CSRC), said Friday that
new stock issuance will restart for sure, but it should take place after
relevant reform has been completed.

A capital market would not sustain for long without
effective fund raising, said Yao during the Boao Forum for Asia (BFA) Annual
Conference 2009.

He said the global financial crisis had little impact
on the Chinese capital market since the listed companies had limited investment
in foreign financial products.

Comparing with volatile overseas markets, the Chinese
stock market posted better performance, said Yao, citing a 30.34 percent rise of
the Shanghai composite index in the first quarter of this year, and a 41.71
percent gain in the Shenzhen bourse during the same period.

Charles Li, chairman of JP Morgan, said the fact that
the Chinese capital market escaped the financial crisis did not mean that China
did not need to further open its financial system to the outside world.

He noted China should keep an open mind since the
financial market would not move forward without innovation.

BFA was established in 2001 as a platform for
high-level interaction between leaders and business people from Asia and around
the world. The theme of this year's conference is "Asia: Managing Beyond
Crisis."