The Comparative Relations Of China And The Chinese Financial Market

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The United States and China are the world's largest investor and utmost contributor to global financial and economic growth by wide margins. The competence of its financial system in allotting capital to asset will be significant to sustain this growth. This paper examines the comparative relations of US and Chinese stock market from the 1980s to the global financial crisis of 2008 and the relative impact of Chinese markets on the US stock markets as China opens up to investors globally. China's stock market since the last financial reform has become as educational about forthcoming corporate profits as in the US. Furthermore, although it is a closed market meaning not everyone can have the opportunity to invest in Chinese markets, Chinese…show more content…
Following a shaky first era from 1990 to 2000, China’s financial market received a standing as a casino like environment manipulated by speculators and insiders who has government influence. In the recent times, China’s after crisis stock market regaining has insulated those of other dominant markets, as its rapidly increasing sleuth banking sector, delivering new high yielding but covertly guaranteed wealth-management financial instruments to finance both market influenced and centrally prearranged investment, has dragged in financial capital and elevated essential equity returns. New issues may lead to the dangerous underpricing in China’s market that are the inexperienced investors and higher demands of IPO shares, the foreign exchange trading stage is not effective and well-organized to entice the overseas investors, the unwarranted industry assembly of the registered firms is very significant as the Chinese stock market is heavily dominated by the industrial firms. Small and medium sized enterprises in China that are not qualified from the primary stock market, turns to the growth enterprise market that is essential to address the issue of raising capital for those small medium sized firms. There are many stock
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