Chinese Stock Market

In: Business and Management

Submitted By MIGUELPINTO
Words 1091
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Universidad Carlos III – Master in Financial Analysis

Shanghai Stock Exchange

Financial Market Report
Guidance: Mikel Tapia

Miguel Teixeira Pinto Navkaran Bakshi

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Universidad Carlos III – Master in Financial Analysis

Introduction

Regarding the subject Financial Markets, we will analyze the Chinese Stock Market and understand how it works. In that sense, with the support of Professor Mikel Tapia, we will study the type of Market that we are leading with, which type of brokers belong to this Market and all the other rules that we think that are relevant to the Shanghai Stock Exchange and to the Investors that work with this Market. So, first and to contextualize, we will start with an explanation of the Stock market with some relevant historical information. In this brief introduction, we will approach the information related with the creation of the Market and the modifications that it suffered during the years. After this deep analyze, we will pass to the descriptive analyze where we will try to explain and understand how the Market is Operating.

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Universidad Carlos III – Master in Financial Analysis

Market History

The Shanghai Stock Exchange is based in the city of Shanghai, China. It was inaugurated in November 1990 and is wholly state-owned with a Market Capitalization of $2.3 trillion making it the World’s 6th largest stock Market. It is one of the two Stock Exchanges operating in China (Shanghai Stock Exchange and the Shenzhen Stock Exchange), although they are not cross-linked and the stocks listed at the two exchanges are mutually exclusive. It began operations in December 1990, one month after the inauguration. In 1991, the Municipal Government in Shanghai introduced regulations that allowed listed companies in Shanghai to issue B-shares to attract foreign investments. And to conclude, the first B-share issue was launched…...

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