Report Highlights

In 2008, China's securities industry stood tests. After five years' double-digit growth, the Chinese economy got into the cycle of rational pullback. Meanwhile, due to unfavorable factors such as natural disasters and the financial crisis, in 2008 China's economic growth rate fell month by month. In the first three quarters, the tight monetary policy adopted by the central bank curbed the expansion of overheated economy, and reduced the possibility of liquidity inflow. 2008 fell on the unlocking period of non-tradable shares. Historical problems that had been built up for a long time were released at one stroke, causing unbalance in the stock market. The US subprime lending crisis evolved into the global financial risks. As a result, foreign investors pulled out of the market, and domestic investors' confidence was battered. At the end of the year, the government introduced a host of proactive fiscal policy and moderately loose monetary policy, stopping deep economic slump and pullback of the capital market. However, due to the complexity of internal and external environments, there is great uncertainty in the future.
The SSE Composite Index fell from 5262 points in early 2008 to 1902 points in early December. Securities companies' trading for own accounts was not very profitable. In 2008, trading value totaled 25 trillion yuan in the stock market, down 45.7 % year on year, a total of 302.9 billion yuan was raised (including IPOs and refinancing), down 60.1%. Securities companies' stock brokerage and undertaking business decreased by some 50%. In sharp contrast with the stock market, in 2008 the bond market picked up. The CSI Aggregate Bond Index rose from 118.1034 points in the beginning of the year to 129.9302 in early December. Main bond products' yield curve moved downward. In 2008, the total amount of bonds issued was 6.9 trillion yuan, with a YOY drop of 12.7%, and trading value was 98.9 trillion yuan, up 55.6%. The primary bond market was stable, while the secondary bond market was brisk¡­

In the face of changes in the economic situation and ups and downs in the securities market, we release the 2008-2009 Annual Report on the Development of China's Securities Industry, which helps securities companies, investors and industry insiders grasp accurately laws governing the industry's development, identify its development direction, and examine the migration track of investment value.
* All-round and in-depth analysis of macroeconomic situation: On the basis of GDP, CPI and PPI curves, the report probes factors affecting economic fluctuations and phase characteristics; sums up macro regulation policies introduced in 2008, and interprets the background and effect of the policies.
* In-depth, full and accurate research data: Through price-volume market analysis method, with share price, amount of funds raised, trading value, bond price, bond issuance, trading value of bonds, fund unit price, fund issuance, and trading value of fund units as core indexes, we established an index system describing market capacity, and presents the latest data on the indexes.
* Scientific and complete forecasts: we conduct regression modeling and expert verification of major market segments, and examines relevant external factors, deriving valuable trend analysis and quantitative forecast results.