New Thinking in Financial Market Regulation: Dismantling the “Split Share Structure” of Chinese Listed Companies

China’s distinctive set of stock market institutions was introduced in 1990. Among the characteristics of China’s stock markets was a strict separation between different categories of investors. Listed companies issued different categories of shares to state shareholders, domestic corporate investors, domestic individual investors, and foreign investors. By 2005, the barriers segmenting China’s stock market had been significantly relaxed. Domestic investors were allowed to purchase shares previously reserved for foreign investors, and approved foreign investors were allowed to purchase shares previously earmarked for domestic individuals. Nevertheless, a crucial barrier remained. An ongoing debate among Chinese academics, investors, and policy makers focused on how to resolve the “split share structure” (guquan fen zhi) in which a minority of shares were tradable while the majority of shares (namely those reserved for domestic corporate and state shareholders) were excluded from the market. The split share structure was blamed for distorting prices and inhibiting development of the stock market. This paper analyzes the policy adopted to address the split share structure. To what extent does this policy change reflect new thinking on the part of China’s market regulators? This paper argues that analysis of policy making in China’s capital markets can help to distinguish between two competing assessments of China’s political economy. One account sees China pursuing a gradualist strategy, slowly but steadily expanding the role of markets. Another account sees China trapped in a semi-marketized and increasingly corrupt development pattern. The implementation of the split share structure reform program provides evidence to support the gradualist account of incremental, but persistent, reform. Mary Comerford Cooper is an assistant professor in political science at the Ohio State University. Her recent research focuses on the politics of financial markets in China and Taiwan. Earlier versions of this paper were presented at the Comparative Politics Research Workshop/ Globalization, Institutions and Economic Security Workshop at Ohio State University in May 2007, and at the annual meeting of the Association for Chinese Political Studies in July 2007. I benefited greatly from the constructive and insightful comments of Bj?rn Alpermann, Melanie Barr, Jean-Marc Blanchard, Sarah Brooks, Joseph Fewsmith, Sujian Guo, Dane Imerman, Ryan Kennedy, Marcus Kurtz, Xiaoyu Pu, James Reilly, Alex Thompson, Daniel Verdier, Jianwei Wang, Alan Wiseman, Bin Yu, and an anonymous reviewer. I am also grateful for Lan Hu’s exceptional research assistance. All remaining flaws are purely my own.     

The collapse of the fisheries sector in Kyrgyzstan: An analysis of its roots and its prospects for revival

The disintegration of the Soviet Union had profound economic and social effects on many of the newly independent transition economies. Nowhere was this more so than in the fisheries sector – with one of the biggest production shortfalls occurring in Kyrgyzstan, following the collapse of lake capture and pond-culture production. In 2005, aggregate landings were just 48 tonnes – barely 3 per cent of the catch level recorded in 1989. This article has two objectives. First it analyses the extent to which the dissolution of the Soviet Union can explain the collapse of the fisheries sector in Kyrgyzstan. Second, in the light of these findings, it considers what practical steps, if any, might be taken to revitalize the sector.     

Housing Management and the Comprehensive Housing Model in Hong Kong: A case study of colonial influence

This article contains an examination of the way in which the largely British model of professional comprehensive housing management became important in Hong Kong. It shows how a comparatively small number of pioneers, mainly women who were followers of the principles of Octavia Hill, a philanthropic social reformer who developed her ideas in 19th century London, had a considerable influence in the very different environment of Hong Kong. An examination of the comparatively small amount of literature on the housing management profession is followed by a detailed analysis of the way in which the housing management profession has developed in Hong Kong. A review of the origin of public housing programmes in Hong Kong highlights the influence which housing professionals had when the housing administration was radically restructured at the time of the formation of the Hong Kong Housing Authority in the early 1970s.     

Overprovision and the licensing (Scotland) act 1976

This paper examines Scottish licensing law, in particular the granting of licenses to supply alcoholic liquor. Any application for a license must be granted unless one or more of four conditions are fulfilled. One of these, that the award would lead to overprovision, is the central concern of this study. The paper does not investigate why the consumption and distribution of alcohol are regulated nor why regulatory control takes the form it does. ¹ The starting point is rather that regulation exists and takes a particular form. Attention is focused on the operation of this regulatory control and with how it might be improved.In the next section, some of the key features of the licensing law and its appeals are reviewed, establishing the importance of evidence of the presence or otherwise of overprovision. Section II discusses the use of density of licensed premises as a measure of provision, indicates the problems, and argues that a measure might be refined and validated by entering it in an equation explaining the retail price of alcoholic beverages. Section III examines empirically the relationship between price and licensing density.     

Under development and modes of production: A reply to Nicos Mouzelis

What follows is a reply to a number of points raised by Nicos Mouzelis in his review of my book, From Modernisation to Modes of Production: A Critique of the Sociologies of Development and Underdevelopment (Macmillan 1979, £4.95 paper) in The Journal of Peasant Studies, Volume 7, No. 3, April 1980. I focus on Mouzelis’ arguments that my framework for analysing Third World societies is ideological and reductionist. I try to show how the analysis put forward in my book can be used to analyse what for me is the central problem of ‘development ‘ ‐ namely the relations between the restricted and uneven capitalist development characteristic of Third World societies, their class structures, forms of state and development strategy. I also examine the relevance of Mouzelis's alternative ‐ of inter‐relating structuralist and action perspectives ‐ and suggest that the framework put forward in my work can deal more adequately with the issues raised by Mouzelis in his review. I agree with Mouzelis that the most fruitful debates in the Sociology of Development currently centre on the relevance of the Marxist approach, and view my comments here as part of this wide‐ranging, continuing debate, of which my work forms a part.