China Capital Market is becoming an important participant in the Asia-Pacific security markets. The economy of China has developed smoothly and it was least affected by the financial crisis that has created major problems for the Asian countries.
The development of the China capital market is also caused by the reform of the Chinese industries that was previously owned by the state. China has one of the biggest domestic capital markets of the world and after China has entered the World Trade Organization, this market is shaping the capital markets of the entire continent of Asia.
With the emergence of the concept of globalization, the flow of capital between the countries has become much easier because the boundaries between the different global markets have demolished.
Taking the advantage of the conditions, the Chinese companies are doing business in the whole world and are leading in many industries. The huge profits, which they are earning from these countries, are invested in the China capital market and this is also providing enough support to the growth of the Chinese capital market.
The Chinese securities market were going through some turmoil in the recent past but now the markets are again stabilized and growing steadily. Even some of the market regulators are interested in investing their hard earned wealth in the market. The long-term conventional bond market is under restrictions and because of this, several companies have developed short-term bond market which is at present doing very well. This short term market has raised nearly $27 billion from the market till the third quarter of 2007. On the other hand, the long term market has been also encouraged by this development and it has moved from $8 billion to $13 billion.
Shanghai Stock Exchange is the major exchange of the country and is leading the development of the China capital market. This stock exchange is one of the major stock exchanges of Asia because of the huge number of the participants and the number of listed companies and shares. At the end of 2004, there were about 38 million investors in the exchange and almost 840 companies are listed in the exchange. In the same year, the exchange produced almost RMB 46 billion and the market capitalization of the exchange was nearly about RMB 2.6 trillion.
Last Updated on : 5th July 2013