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"The most obvious and critical element to the successful development of your capital markets will be corporate governance and transparency," Mr. Sodano said, speaking in the historic Great Hall of the People. "Investors must always be afforded the proper protection. It is of the utmost importance. If confidence is lost, the ramifications to your economy will be severe and long term."
He commended Chinese officials for steps being taken by the China Securities Regulatory Commission and the Securities Association of China "to align the nation’s regulatory apparatus with the standards expected by today’s global investment community."
"Within the Forbidden City, in the Palace of Heavenly Purity, an inscription over the throne reads, ‘Be Open and Above Board.’" Mr. Sodano noted. "I can think of no better guiding philosophy than this – one that, like China itself, has stood the test of time."
Mr. Sodano’s remarks, the keynote address at the Beijing International High Tech Week, were warmly received. He also urged Chinese officials "not to lose focus on the real engine of your economy — small and medium enterprises — a class of companies that need special support and attention from the capital markets."
He noted that small and medium enterprises, or SMEs, make up 98 percent of Chinese businesses. He also cited the advantages of the specialist system versus the dealer system and its potential to create greater liquidity for small- to mid-cap companies. The Amex is an auction-specialist system and caters to small and medium sized companies, as well as options and exchange-traded funds.
Mr. Sodano pointed out the need for other financial organizations around the world to work together bring new and innovative products to their respective markets. He cited the recent launch of trading of Amex-listed exchange-traded funds (ETFs) on Singapore Securities Trading (SGX-ST). "Through our joint venture with Singapore we are giving Asian investors the opportunity—for the first time ever—to buy or sell these diverse stock portfolios in a single security," he said.
The American Stock Exchange®, a subsidiary of the National Association of Securities Dealers, Inc. NASD®, is the only primary exchange that offers trading across a full range of equities, Exchange Traded Funds (ETFs), including structured products and HOLDRSsm, and options. In addition to its role as a national equities market, the Amex is the leader in ETF listings, listing 99 ETFs to date, and is the second-largest options exchange in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks. For more information, visit www.amex.com.
