City's equity market to evolve into a trading & pricing center for financial equities

The equity market in Shanghai is on track to become one of the major domestic pricing and trading centers for financial equity transfer. A source with Shanghai United Assets and Equity Exchange predicted this year's trade volume of financial equity in the local market would climb over 50 billion yuan, while the figure for 2007 was 21.215 billion yuan. Transactions involved over 200 institutions in the banking, securities, insurance and futures sectors.

With rising asset prices in the recent few years, the prices of financial stocks on the securities market have also been on the rise, even the financial equities of non-listed firms begin to have increasing appeals to the market. Shanghai's equity market, equipped with a sound market rule system and price discovery function, is becoming a key pricing and trading location for various financial equity transfers.

The same SUAEE source said the government is mulling over administrative measures to regulate the transfer of state-owned financial assets and equity, which will be conducted solely by equity trading institutions and further facilitate such deals in the equity market.