Since the reform and opening began, China has
continuously expanded the capital market by improving the
credit and loan mechanism, and developing stock and state
debt markets. At the beginning of the 1980s, the reform of
the credit and loan mechanism, beginning with “unified
plan, multi-level control, connection of deposits with
loans, and being responsible for making up
differences” developed in accordance with the ratio
between assets and debts, and eliminating the limits for the
sizes of loans. In order to match this important change, new
measures have been adopted, such as re-granting loans,
re-discounting, reserve fund rates and making market
business public, thus standardizing and strengthening the
control and adjustment of the credit and loan market. At the
same time, the stock market grew from nothing to become a
large-scale stock market, symbolized by the Shanghai and
Shenzhen stock exchanges.
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