China will effect two major shifts in its financing channel: the shift from banks to capital market and the shift from international market to domestic market.

The two shifts were predicted by Leung Ding-bong, chief advisor of the China Securities Regulatory Commission, during a recent seminar on venture capital held in this capital of southwest China's Guizhou Province.

In his keynote speech entitled "the capital market and venture capital" to the seminar, Leung said the mainland's capital market has experienced significant development in recent years.

The mainland's stock market ranks sixth in the world with a market value exceeding five trillion yuan (about US$600 billion).

Stocks in circulation at the stock exchanges in Shanghai and Shenzhen totaled 1.7 trillion yuan (about US$205 billion) in market value.

Listed companies in the Chinese mainland raised a historic 201.3 billion yuan (about US$24.25 billion) last year through A, B and H shares.

However, the mainland's capital market is still in its initial stage but has great potential to be tapped in fund raising, citing the improper industrial structure, poor management of enterprises and less international competitiveness, Leung said.

He pointed out that the sustained economic growth, constant increase in fixed income and corporate investment as well as some innovative measures in the financial service sector will all be conducive to the development of the capital market.

Leung called for training of more professionals in the financial sector to meet the demands of the expanding capital market.

(Xinhua News Agency 07/24/2001)