| Acknowledgements | 5 |
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| Table of Contents | 7 |
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| List of Tables | 17 |
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| List of Abbreviations | 19 |
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| General Notes | 21 |
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| 1 Introduction | 22 |
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| 2 The Significance of Effective Development in China | 26 |
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| 2.1 Stability and Welfare as Governance Maxims throughout the Millennia | 27 |
| 2.1.1 Momentous Historical Occurrences | 27 |
| 2.1.2 From Sophisticated Power to Stunted Performance | 31 |
| 2.2 China's Development Since 1978 | 35 |
| 2.2.1 Stability and Welfare Throughout the Course of the Reform Period | 36 |
| 2.2.2 A Note on Conduct to Imminent Instability | 38 |
| 2.2.3 Unequalled Achievements in Regaining Momentum | 41 |
| 2.3 Considerations for the Future Path of Development | 47 |
| 2.3.1 A Broad Array of Challenges | 48 |
| 2.3.2 The Paramount Importance of the Financial System | 50 |
| 3 The Connection Between the Capital Market and Development | 54 |
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| 3.1 General Aspects of Financial System Design | 55 |
| 3.1.1 Resuming the Bank-based Versus Market-based Debate | 56 |
| 3.1.2 Limited Applicability of an Overall Concept of Efficiency | 58 |
| 3.1.3 Principle of Dynamism and Evolutionary Capability | 60 |
| 3.2 The Finance-Growth and Finance-Development Link in Theory and Empiricism | 62 |
| 3.2.1 Theoretical Concepts | 63 |
| 3.2.2 Empirical Studies | 64 |
| 3.3 Resulting Research Method | 68 |
| 3.3.1 Fundamental Features of the Development Structure | 69 |
| 3.3.2 Overview of the Role of the Capital Market in Effective Development | 75 |
| 3.3.3 A Functional Perspective as a Starting Point | 77 |
| 3.3.4 Evaluating the State of the Capital Market | 91 |
| 3.3.5 Parameters Influencing the Capital Market | 93 |
| 4 The Current Performance of the Chinese Capital Market | 99 |
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| 4.1 Rationale for the Stock and Bond Markets' Re-emergence Since the 1980s | 100 |
| 4.2 The Stock Market Segment | 102 |
| 4.2.1 Relevance of the Stock Market in Raising Capital | 103 |
| 4.2.2 Particularities as to the Differentiation into Diverse Share Categories | 105 |
| 4.2.2.1 Shares of Companies Incorporated in China | 106 |
| 4.2.2.2 Shares of China-related Companies Incorporated Outside China | 112 |
| 4.2.2.3 Market Segmentation in Transition | 114 |
| 4.2.3 Companies Quoted on Domestic Stock Exchanges | 120 |
| 4.2.4 Investors in Domestic Stock Exchanges | 137 |
| 4.2.5 Data on Stock Market P
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