1.1 Background
Since initiating a series of economic reforms and adopting the open policy in 1978, China’s economy has experienced a spectacular growth and achieved a remarkable success over the past three decades. In particular, according to the government figures released on August 16th 2010, China’s economy in the second quarter has slightly surpassed Japan’s in terms of gross domestic product. This milestone suggests that China is becoming the world’s second-largest economy behind the United States. At the same time, the opportunities created by the striking economic growth have led China’s most important investment markets, stock and real estate markets to undertake an enormous transformation and development. On one hand, since the two stock exchanges (Shanghai Stock Exchange & Shenzhen Stock Exchange) were launched in 1990, China’s stock market has served as a vehicle for financing and supporting the development and reform of State-Owned Enterprises. That is, within China’s bank-dominated financial system, stock market was restricted by a series of regulations and assumed only a secondary role in the financial economy. Not until the late 1990s did the stock market acquire an increasingly important strategic role in China’s economy. The stock market was vigorously promoted by relaxing regulations imposed on it and experienced tremendous growth in size and liquidity since the early twenty-first century (Lai & Yang, 2009, p.409-410).
On the other hand, as same as the
In 2008, the Global Financial Crisis broke out; both the American economy and the economy in the West suffered a hard blow. However, a big economy system in the East emerged unexpectedly. China is now able to challenge the America’s decades-long dominant position in economic area. Started during the middle of 1990s, China’s manufacturing industry developed rapidly that billions of exports were floating out, and China was given the title of “the world’s factory”(BBC). By the end of 2010, China with a GDP of $5.8 trillion, surpassed Japan’s GDP of $5.48 trillion, became the world’s second largest economy system (BBC). China also exceeded Japan became America’s largest foreign securities holder. Since then, China has been seen as the US’s
Poor Technological Development: Due to poor infrastructure of R&D and unskilled employees, technological innovations may not possible
For the past century, Chinese society has felt a compulsive desire to develop at breakneck speeds. In pursuing development, China’s primary goal has been to display its sophistication to the world, rather than to directly aid the welfare of its citizens. Following this hierarchy of objectives, China has continued to relentlessly modernize despite enormous negative consequences; the development powered through famine during the Great Leap Forward, violence during the Cultural Revolution, and economic dislocation during liberalization, accepting negative consequences as bearable burdens on the path to global renown. Ignoring these issues, China has proven itself more responsive to international views of modernity than to immediate national
China’s exceptional economic growth could barely be suppressed in China’s borders. Although China was both a giver as well as a receiver of economical communication throughout Eurasia. One of China’s many effects of their economic transformation lay in the dispersal of its tegnological advancements to people and places as the migration of soldiers, merchants, traders, slaves, and pilgrams, carried their accomplishments internationally. China’s unique way of manufacturing salt by solar evaporation spread to Christian Europe as well as the Islamic world. Papermaking, which started during the Han Dynasty, spread to Vietnam and Korea by the 4th century, Japan and India in the 7th, etc. Both printing as well as papermaking were both heavily affected
China’s sudden growth and rise to an economic superpower has affected the worldwide economy, the worldwide environment, and its own private industry in ways that may have longstanding effects for the future.
This paper will encompass the importance of the U.S stock market/stock exchange versus the Chinese stock market/ stock exchange, with a brief introduction about how each stock market/stock exchange came into existence, the importance of each stock market/stock exchange, how the U.S and Chinese manage their stock markets/stock exchange, how corporations are appointed plus the rules and regulations. This will also entail random facts about each stock market/stock exchange. Stock markets are like hitting a royal flush, if the price of your stocks goes up, you win; if it drops, you lose! The stock market, also known as the fairness market, is one in which shares are owned by companies and their shareholders. The companies that are on the stock market, its stocks are issued and traded publicly, through either exchanges or over-the-counter markets. The stock market is considered to be one of the most critical components of a gratuitous-market economy that provides companies with access to dominance in exchange for giving investor’s the opportunity to have some type of possession of the company. The stock market gives those the power to invest monies, and to capitalize on their gains. This in return can bring about wealth to some without having to take a financial risk in starting up a new business.
Over the last two decades, what was once a developing country has grown into the economic superpower that is China. China passed Japan to become the world’s second-biggest economy in terms of GDP in the second quarter of 2010 and was said to be on track to surpass the United States in 2027, with an annual GDP of $14 trillion (Bloomberg). Since China became a larger and more influential country, it is now important to realize that the global economy depends heavily on China’s actions. Their exports have lowered consumer prices across the board, and their imports have impacted commodity prices. However, in recent times, China’s economy has