By the end of 2001, the amount of Chinese listed companies reached 1167. The initial public offering amount hit 64 with RMB53.2 billion yuan raised, presenting an obvious decrease compared with 141 initial public offerings and RMB82.6 billion yuan financed last year. In 2001, the financing capital in stock market totaled approximately RMB110 billion yuan. In the whole year, 22 companies raised RMB19.6 billion yuan capital through additional offering, keeping equivalent to last year; 102 companies raised about RMB36.9 billion yuan through right offering, seeing a significant fall compared with the previous period. However, this year saw some emerging hotspots, new policies and heat arguments.

1. The China Securities Regulatory Commission intensified its supervision and management and illegal deeds were exposed continually. In early 2001, the China Securities Regulatory Commission showed its resolution to strengthen supervision and management, and sounded the prelude of investigating serious cases starting from the Case of Zhongke Chuangye (China Technology Pioneer) on January 10. The top case was the case concerning Yinchuan Guangxia Industry Corporation, whose stock saw price fall from RMB31 yuan to RMB3.83 yuan. The increasing investigation efforts reflected the resolution of the regulatory sectors to supervise, manage and standardize stock market. Despite that credit crisis brought about by cheating exposal of some listed companies led to an evident fall of the stock market, the investigation of cheating cases in the long run further standardized and purified the stock market and helped improve overall quality of listed companies and protect interests of investors.
2. Many policies concerning stock market created great influences. This year saw a high frequency of policy establishment, which played a significant role in the market. What most deserved mention remained as follows: First, the examination and approval system on conditions of limited quota was abolished and the authorizing system was adopted from March 17, 2001. On March 29, the China Securities Regulatory Commission enacted Provisions Concerning Management on New Public Offering of Listed Companies, reduced the benefit index which listed companies applied for right offering and additional offering, and strengthened release, supervision and management on information concerning listed companies. Second, on June 14, the State Council released Interim Regulations Concerning Management on Reducing State Shares and Raising Social Security Fund. On October 22, the State Council decided to suspend the implementation of regulations concerning reduction of state shares before the establishment of specific operation regulations. According to Interim Regulations Concerning Management on Reducing State Shares and Raising Social Security Fund, the accumulative shares issue system was applied for state shares reduction. The accumulative shares issue price remained equivalent to the new shares issue price. As this kind of operation aroused fierce reaction on the market, the maximum point in Shanghai and Shenzhen saw a decrease rate of over 30 percent from June to October 23 when the state shares reduction policies paused.
During that period, the investigation on illegal bank funding policy, additional share offering policy and subsequent transaction tax reduction policy also created a significant impact in the stock market. The delisting mechanism of listed companies was established and implemented; it also played a negative role in the stock market. On February 26, China Securities Regulatory Commission promulgated Regulations on Implementation of Suspending Listing and Terminate Listing of Listed Companies in Deficit. On April 23, the PT Narcissus was the first delisted company. Policy varieties led to knockout performances of the B share market. On February 19, China Securities Regulatory Commission announced the opening up of B share market to domestic investors; the opening up in B share market and potential benefits aroused favorable market. But after June, B shares saw a downturn again.
3. There were still some problems on security market, which could not be neglected and required treatment according to law. First, the information released by listed companies was unreal. In the purpose of issuing stocks for listing, some companies made false packages; some companies varied financing direction at random; some speculated their company stocks, issued false information so as to misguide. Secondly, a few listed companies were still manipulated by major shareholders so that the interests of medium and small shareholders were impaired. For example, the Monkey King Company suffered from a hollowing-out by its major shareholders. Thirdly, some security institutions conducted illegal operation. Security companies and investment consultancy institution participated in illegal deal and manipulations of stock market, for example, cases of stock manipulation by Zhongke Chuangye (the China Technology Pioneering Corporation) and YiAn Keji (Yian Science and Technology Corporation). Fourthly, agencies violated professional morality. Some agencies made false accounts and offered false certification for enterprises. For example, the Zhongtianqin Accountant Office committed a crime of this sort in the Yinchuan Guanxia Industry Corporation case.