The speech of the Chairman opening the new quarters was as there are no sellers and when I want to sell there are no buyd and to a great extent this was true, 'Then came the question "Why' Well, Gentlemen, there were a variety of reasons.
The mest im: portant to my mind was the faci that the public and very often a number of brokers did not know what the market was some would be done and the price qu other business done and not quoted; both in the same stock. Very often there was quite a big difference in the prices. Too much time wasted by brokers going from one client to "another to try and do! business direct, and if it was not possible the order would be held up until it was possible instead of offer ing it in the exchange.
Brokers! offices were not central and daily deliveries wasted further time.
As I said before, Shanghai is-n ind although we-are-not a philanthropic institution, we want to try to give the public' facil ity to invest as safely as possible with a maximum knowles concert ing the -particular stocks in which they are interested, especially the' Chinese, whose interests are far in excess of the foreigners, Public Invited to Attend Accordingly from July 8 wards clients will be invited to) enter these premises from 9.30 am. '(we hold our auction at 9.35 am) until the close of business. pulsory quotation of bos by brokers here is alread; showing quantity, price, tine. buyer eller. These boards you see are self-explanatory. You will notice that all boards are in full view of clients who are lowed anywhere except actuall in the rin Brokers offices are adjacent here and upstairs. Our membership is open to any nationalit and I am glad to say that we already have one! Chinese member who has been considerable asset, Wo-are shortly creating: clearing house to expedite deliveries on settlement days which we trust wil! dispel the blue language which is} apt to emanate from the account-fant's department of the banks on {four days of the year.
In short we are trying to do our! best to help all those interested in stocks and shares, thinking that China, as we all learnt as schoo! children, is a vast country populate? by. over 400,000,000 people. The wealth and the potential wealth unlimited. Shanghai is on2 of the leading cities not only of China or the East but in some respects of tre world.
As such there is no reason should not possess the same as any other big city in any other part of the world. As far as stocks and shares are cancel vhich is our business, we a1 an attempt to produce those jes in our market which wil! compete favourably with ary other markets. In the past, investors and speculators alike, have had their fingers burnt to such an extent that nowadays the majority are a li chary about coming in again Jespi: e the fact that Shanghai can offer a bigger yield per cent. on safe it vestment stock than practically any part of the world.
The complaint heard everywhere was "Oh yes when I want to-boy In conclusion, Gentlemen, 1 shaula like to thank you very much for your attendance here to-day trust that if at any time you do business through this Association that you have no cause for complaint (applause).
Modern Business Finance Mr, Reynell was followed-by Mu.
Ming, chairman and general manager of the Chekiang Industria] Bank, Ltd., who said:
The great number of big corporations is a distinct feature of modern business, Their respective capit: alization often runs into tone or hundreds of millions of dollars trouble in the'past has been that the for their equivalent. To raise suet large amount's of capital. they must have their securities widely distributed. For instance, the United States Steel Corporation has over 100,000 individual stockholders, arid the'American Telephone and Tele: graph Ca. has over'50,000, between buyers and sellers of stoc!: s
tion of corporation security He plays an important role modern business finance. is. vice is essential to the business cor oration, who banks and the invest. ing public, As a banker in Shanghai fr many years, I have always been deeply interested in the working of the Shanghai Sharebrokers Association, Tam pleased to learn that the mens bership of the Association is open to any nationality. "It is an indica. tion of the Association's broad vision and open-mindedness:
A Stock exchange is found in any large city of the world," It is a natural outcome of modern sisiness finance. With a stock exchange Working properly, the prospective buyers and sellers of stocks or bonds are brought closer together than by jarly other way. They are enabled to know the exact market at any given moment. They know that their agents will have nothing conceal from them, Having ful! confidence in their agents, the brokers, they will not hes: tate to buy or sell through them." More transactions will thus be. consum= mated through the brokers, and both the brokers and their benefited thereby, 4 new system by the sharcLroker therefore, is not only good tidiness to their clients, but also to the sharebrokers themselves. I with to congratulate the members of the Shanghai Sharebrokers Association for their wisdom in making all transactions' no longer private but open to the public view,
Text read from the printed page and cleaned; old type leaves the occasional error.