June 2005
The Shanghai composite hits an 8 year low of 1,013.64.

In an effort to restore confidence in the stock market, the CSRC plans to let listed companies buy back their shares and announces that only 50% of the dividends received by retail investors would be taxable.

The CSRC continues to press ahead with the sale of state shares and designates a further 42 companies for a second round of flotation of non-tradable shares.

The composite indices of the Shanghai and Shenzhen stock exchanges rise by more than 8% in a single day on news that the PBOC has no plans to raise interest rates. It is the biggest jump since June 2001.

July 2005
The CSRC issues a new moratorium on new share issues. Analysts predict the decision could further marginalize the poorly performing stock markets, as many Chinese companies will seek overseas listings to raise capital. Stock exchange officials in Shanghai and Shenzhen expect the freeze on new share issues to last until the end of 2005. In fact it will last until May 2006.

The CSRC raises the QFII quota from US$ 4 billion to US$ 10 billion.

China's brokerage firms post a record 45% drop in revenue in the first half of the year.

The PBOC un-pegs the RMB from the US dollar and ties it to a basket of currencies, allowing it to float within a narrow bandwidth. The RMB appreciates 2.1%.

August 2005
China Securities receives a RMB 4.6 billion bailout from the government.

Baosteel and Yangze Power shareholders approve plans to float blocs of non-tradable state-owned shares.

September 2005
The government sets up a US$ 779 million fund to protect investors with accounts in bankrupt brokerages.

Plans for a G share index, listing 'reformed' stocks, are announced.

UBS becomes the first foreign institution to buy into a mainland brokerage, paying US$ 210 million for a 20% stake in debt-ridden Beijing Securities.

November 2005
The CSRC allows foreign investors buy tradable A shares, subjecting them to specified 'lock-up' periods during which they must continue to hold the shares before being allowed to sell them.

December 2005
Foreign investment firms' applications to 'take stakes in or control' Chinese brokerages are suspended by the CSRC. At this point, Morgan Stanley, Merrill Lynch, Goldman Sachs and UBS already have stakes in Chinese brokerages.

The power to vet listing applications and to suspend or delist companies is transferred from the CSRC to the two stock exchanges of mainland China.

January 2006
The Bank of China secures State Council approval for a US$60 billion IPO on the SEHK.

The CSRC announces it will establish a futures exchange in Shanghai.

It is reported that securities companies lost more than US$ 120 million in 2005 thanks to poor stock market performances, falling turnover and the suspension of IPOs.

February 2006
On the first day of trading after the Lunar New Year holiday, the Shanghai composite rises 2.35% to close at 1,287.63 points, its highest level for 10 months, while the Shenzhen composite gains 2.86% to 315.9 points.

China agrees to adopt a form of the International Financial Reporting Standards used in almost 100 countries including those of the EU.

April 2006
UBS is granted regulatory approval for its 20% purchase of Beijing Securities, including the right to management control.

The CSRC announces that the ban on new listing will soon be lifted.

The CSRC awards US$ 350 million in QFII quotas to JP Morgan Chase Bank, DBS Bank and JF Asset Management.

May 2006
The Shanghai composite hits a 23 month high (1497.10) in response to the resumption of issues of secondary shares, convertible bonds and other securities and in anticipation of the first IPOs in over a year.

The CSRC lifts the ban on new listings and hundreds of companies line up to debut on the markets. At the end of the month the Shanghai composite is up 37% on the year.

Jan 2007
QDII funds are introduced as a way for Chinese investors to access overseas markets.

Oct 2007
China's main stock index hit a fresh all-time high after breaking a key barrier of 6,000 points. Some worry that a bubble is forming in the stock market.