China's stock market : a marriage of capitalism and socialism

Research output: Journal PublicationsJournal Article (refereed)peer-review

36 Citations (Scopus)


The article explains how China was able to develop a large, active and technologically advanced stock market in the 1990s while maintaining its monopolistic control over financial intermediation. The development of the Chinese stock market was driven by rent-seeking and speculative activities. A series of reform measures for privatizing listed enterprises have been introduced by China in the early 2000s. It provides a discussion on the likely evolution of the Chinese stock market.
Original languageEnglish
Pages (from-to)359-424
Number of pages66
JournalCato Journal
Issue number3
Publication statusPublished - 1 Jan 2006

Bibliographical note

This article was supported by the Hong Kong Research Grants Council (RGC) Competitive Earmarked Research Grant Awards 2004–2005 (LU7236/04H). The author thanks the Council for its support. She also acknowledges Li Wei, who shared valuable insights on the functioning of China’s stock market within the context of financial repression when the author visited the University of Virginia’s Batten Institute at the Darden Graduate School of Business as a Batten Fellow, and Zhang Xuan, who provided excellent research assistance.

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