The China Series - Introduction
November 24th 2006 03:16
For as low as $2,000 ordinary Australians can now invest in China's sharemarket through funds operated by local fund management houses, licenced by the Chinese authorities. Opening up its financial market is part of China's WTO obligation as its economy gradually shifts from its manufacturing and direct foreing investments dimension to include banking and sharemarket, allowing the world to engage the rising dragon from different economic dimensions.
But China's sharemarket is not an ordinary one that it defies conventional mechanism yet the "socialist" market economy was able to create waves of gigantic listings from New York to Hong Kong. It is truly a near run-away free wheeling capitalism in the formation. Benkaiser.NET Investment Portal presents you a series of independent articles on the overview of China's sharemarket, giving you an insight from its humble beginning, the mechanism, regulations, efficiency and its future ahead.
An Overview of China's Stock Market
Introduction
The stock market, as the name suggest, is a market for trading of company’s shares and it is deemed to be one of the most efficient and quickest way of witnessing the workings of demand, supply and pricing; one of the most fundamentals of economic theory. In the modern day context, the stock market is one of the most important apparatus in allocating capital efficiently to the best performing companies or industry sectors. Its primary function is for companies to raise capital, facilitate investments and possibly the most efficient or brutal way of valuing a company objectively through market participant’s demand and supply interaction.
The Chinese stock market, the Shenzhen and Shanghai bourse, established in 1991 and 1992 respectively, represents one of the most enigmatic stock market systems in the world with a web of complex rules and regulations, practices and preferential treatments that defies the conventional wisdom and movements of a “traditional” stock market system. China’s economic reform has attracted worldwide attention and investments; its stock market is no exception especially with the gradual liberalization of its bourses to foreign funds represents a new frontier for China and the world to tackle.
The increasing international focus on the Chinese stock market forms the motivation for the analysis. Coming up, we will discuss and present the findings of the workings of this enigmatic stock market. Part 1 discuss the fundamentals of the Chinese stock market, Part 2 takes the scope on market regulations and enforcement. Part 3 briefly analyze the empirical findings of the markets in terms of market efficiency and the final part looks into the future ahead for the Chinese stock market.
Coming Up Next: Part 1 - The Fundamentals
But China's sharemarket is not an ordinary one that it defies conventional mechanism yet the "socialist" market economy was able to create waves of gigantic listings from New York to Hong Kong. It is truly a near run-away free wheeling capitalism in the formation. Benkaiser.NET Investment Portal presents you a series of independent articles on the overview of China's sharemarket, giving you an insight from its humble beginning, the mechanism, regulations, efficiency and its future ahead.
An Overview of China's Stock Market
Introduction
The stock market, as the name suggest, is a market for trading of company’s shares and it is deemed to be one of the most efficient and quickest way of witnessing the workings of demand, supply and pricing; one of the most fundamentals of economic theory. In the modern day context, the stock market is one of the most important apparatus in allocating capital efficiently to the best performing companies or industry sectors. Its primary function is for companies to raise capital, facilitate investments and possibly the most efficient or brutal way of valuing a company objectively through market participant’s demand and supply interaction.
The Chinese stock market, the Shenzhen and Shanghai bourse, established in 1991 and 1992 respectively, represents one of the most enigmatic stock market systems in the world with a web of complex rules and regulations, practices and preferential treatments that defies the conventional wisdom and movements of a “traditional” stock market system. China’s economic reform has attracted worldwide attention and investments; its stock market is no exception especially with the gradual liberalization of its bourses to foreign funds represents a new frontier for China and the world to tackle.
The increasing international focus on the Chinese stock market forms the motivation for the analysis. Coming up, we will discuss and present the findings of the workings of this enigmatic stock market. Part 1 discuss the fundamentals of the Chinese stock market, Part 2 takes the scope on market regulations and enforcement. Part 3 briefly analyze the empirical findings of the markets in terms of market efficiency and the final part looks into the future ahead for the Chinese stock market.
The Shanghai Stock Exchange Trading Floor
Coming Up Next: Part 1 - The Fundamentals
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