What does the future hold for China's securities market?
China's securities market will likely undergo a number of fundamental changes. Plans exist to merge the two stock exchanges in Shanghai and Shenzhen, and to launch a new exchange for high-technology firms, which were postponed indefinitely in the post-dot-com environment, may resurface. China's central leadership also hopes to reintroduce mechanisms to reduce the level of state-owned shares in listed companies. Type B shares were opened to Chinese investors last year and now schemes are being developed to allow Chinese citizens to invest in Hong Kong stock markets under a variant of a qualified domestic institutional investor plan. China may also permit futures markets to expand again after years of tight control.