From 1997 to July 1998, the development of the Shanghai stock market underwent a number of rather important changes. Although the duration of a bull market was not long, and the numbers of listed companies in the Shanghai stock exchange had increased to over 460, A shares prices remained at a reasonable level. On the one hand, this development further strengthened the role of the stock market as a barometer for the economy. On the other hand, it showed the stabilizing effect of investment funds in the stock market. We remain fully confident in the future of the Shanghai stock market.