Visitors to the two mainland exchanges notice how sophisticated their trading and settlement systems are. In some ways, they are even more advanced than Hong Kong's.
In Shenzhen and Shanghai, the electronic systems allow for scripless trading, settlement of A-share transactions a day after they are executed, and give brokerages the option of carrying out orders electronically instead of just through floor traders.
While some overseas exchanges took 20 to 30 years to acquire this modern trading technology, the two exchanges took just six years. China only reopened its stock markets in December 1990.
This is no mean feat.
Yet, while China may boast some of the best hardware in share transactions, its 'software' remains backward.
That explains why the securities watchdog and top leaders have a tough time trying to put the stock markets on a healthy development path.
