4. The development of the securities fund

The China Securities Regulatory Commission strengthened its regulation on the securities fund in 2000. The market scale of the securities investment fund is now increasing steadily and funds are in good supply. By the end of 2000, there were 10 fund management companies and five trustees in China. The number of investment funds has reached 34 among which 33 have been listed in the Shanghai and Shenzhen stock exchanges. The total issuance scale of the 34 funds amounts to 56.2 billion yuan, with an assets value of 84.7 billion yuan, accounting for 10.3 percent of the current circulating value of the securities market respectively -- up 11.3, 47.3 and 47.1 percent compared to 1999.

5. The distribution of securities traders and their market scale
As a major agent of China's securities market, the distribution and market structure of securities traders are as follows:

First of all, while the distribution pattern has been formed, great differences still exist in scale. There have been a total 90 securities traders from the securities company foundation of the Shenzhen special zone in 1988 (the first securities trader) until the end of 1997. The basic pattern consists of three groups: large, national securities traders, like China Southern Securities, Guotai Securities, Shenyin Securities, Huaxia Securities, Guangfa Securities and Junan Securities; provincial securities traders, like Hubei Securities; and other local traders.

There is a great difference in scale among securities traders in China. Total assets of the top five traders -- Junan Securities, Shenyin&Wanguo Securities, Southern Securities, China Securities and Haitong Securities -- amounts to 33.95 percent of the total, and their registered capital accounts for 24.52 percent of the total. A total of 66.2 percent of the capital is held by the top 20 traders, accounting for 71.6 percent of the total registered capital. It is evident that the trader development in China is somewhat unbalanced. The assets volume of the smallest trader, Haikou Finance Securities, is 25.48 million yuan, while the largest in China, Junan Securities, reaches 17.565 billion yuan in assets volume -- 689 times that of the former.

Secondly, the primary market CR5 ("CRn" is the acronym for concentration ratio: the percentage of related indicators of the top "n" corporations in the whole industry in terms of assets, registered capital and market share) covers half of the market with its market share remaining in balance. One-third of the market is held by the secondary market CR10. The top five traders will possibly increase their market shares. Therefore, the unbalanced scales of traders are in accordance with their unbalanced pattern of market distribution.

Comparatively speaking, the concentration ratio for securities traders in the primary market, which did not change much between 1997-98, is higher than that of the secondary market. It demonstrates that the monopolization and competition pattern of the primary market is balanced. At present, the environment for securities traders is undergoing tremendous qualitative changes that are mainly represented by the marketization of the dealer business, management of trader categorization, as well as the creation of new business.

The enactment of the Stock Act and the development of organizational investors, such as the securities investment fund, will possibly change the functional mechanism of the Chinese securities market. Meanwhile, the original system of the brokage sales department is now facing a challenge of networking technology. These changes are bound to result in the reorganization of the Chinese securities traders group. The original balance in the primary market will be broken and replaced by a higher level of balance.

There was an evident increase in 1998 in the concentration ratio of the secondary market compared to 1997. CR5 increased by 67.64 percent, and CR10, by 26.19 percent. This shows that the concentration ratio of the secondary market is on the rise. On the other hand, the increase of the CR5 over the CR10 demonstrates that market shares of the top five traders in the secondary market have climbed in 1998, while those of the next five traders have fallen compared to 1997. This phenomenon reveals the monopolization of the securities secondary market and the competitiveness enhancement of the top five traders.

In 2002, 96.2 billion yuan was raised by issuing and stock transferences -- a decrease of 29 billion yuan over the previous year. Among them, 102 A-shares were issued and 22 stock completed transference, up 78 billion yuan and down 40.2 billion yuan over the previous year; 16 B- and H-shares were issued, climbing 18.2 billion yuan -- up 11.2 billion yuan over the previous year. At the end of the year there were 1,160 listed companies compared to the current 1,224 listed firms, whose total market value amounted to 3832.9 billion yuan -- down 11.9 percent over the previous year.

The Tenth Five-Year Plan of the Insurance Industry and Its Development
1. General market conditions

According to official statistics, the total annual insurance premium revenue in China was 159.59 billion yuan (US$19.22 billion) in 2000 -- an increase of 14.5 percent over the same period in the previous year. The depth of insurance was 1.8 percent -- up 0.1 percent compared to the previous year; insurance density totaled 127.7 yuan, with an increase of 17.1 yuan from a year earlier.

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