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
The Chinese, Shanghai’s stock market came into existence in June 1866, followed by Hong Kong’s stock market coming into existence in 1891. The most important/up to date stock markets in China is Hong Kong and Shanghai’s. Stock markets are ran a lot of different ways; first companies have to list in the stock market to be public, then you have “Brokers, who allow companies to be listed and connect the buyers and sellers, followed by dealers, who fill their clients orders by trading with them. Exchanges provides places where trades can meet to arrange their trades, and last but not least a floor-broker which is somebody who represents client’s orders at the point-of-scale on the exchange floor. They are basically the eyes and ears to their clients stocks.” (Viswanathan,
Their mission is to protect investors from false exchanges. This helps maintain the efficient market as a whole. China Securities Depository and Clearing Corporation, (China Clear), is in charge of uniting Hong Kong and Shanghai’s stock market. Their main goal is to make sure that their stock market remains protected at all times. At this given moment China Clear is attempting to merge both the Hong Kong and Shanghai’s stock markets together. This will allow investors to be able to trade products such as the Qualified Foreigner Institutional Investor (QFII) funds between Hong Kong and the Mainland China. This process states “It should take approximately six months from the date of the Joint Announcement of CSRC (10 April 2014) to complete the preparation for formal launch of Shanghai-Hong Kong Stock Connect.” (IEC, 2014.) Shanghai has the largest stock exchange in Mainland China. It is a nonprofit organization ran by the China Securities Regulatory Commission (CSRC). In order for a business to be listed in the exchange they must be earning a profit for nothing less than three years before joining the exchange. There are two main classes of stocks for the Shanghai stock exchange, A-shares versus B-shares. A-shares are used by China and are available for foreign exchange. B-shares are used by the United States that are open to foreign investments. Hong Kong is the
The Montreal Stock Exchange was incorporated in the year 1874, but as early as 1832 a group of brokers met regularly to trade stocks within a coffee house which was later named the “Exchange Coffee House”. In 1863, a Board of Brokers was formed which soon grew into a regulated body with a membership subject to election. In 1974, The Montreal Stock Exchange merged with the Canadian Stock Exchange, and a year later becomes the first to sell stock options to Canada. The Montreal Stock Exchange in 1982 officially changes its name to Montréal Exchange in order to reflect the growing importance of financial instruments other than stocks which primarily include options and futures – on its trading floor. By 1986 the number of new listings at the MX
The industry of securities brokerage (or named stockbroker) may be divided into three categories: the multinational financial giants, the traditional adviser-based stockbrokers and the internet-based stockbrokers.
The article also give snap shot of the foreign companies who misjudge the Chinese culture, competition, size the market, and some other factors, have been badly affected by investing in china.
The stock market is a centralized area where buyers and sellers comes together to perform stock transaction. When one thinks of the stock market, the first thing comes to mind is Wall Street which is sometimes referred to as the New York Stock Exchange as well as the NYSE.
The coins made in gold, silver and bronze were traded during Roman Empire and the shortage of coins created a barrier for money circulation. However with the establishment of paper money, a sophisticated banking, global clearing system and electronic money, the global financial system evolved with a worldwide framework of legal agreements. In the Global Financial market, foreign currencies issued by the world, countries are traded by the buyers and sellers using currency exchange rates. Now a day, it is very common practices of companies in one country to raise capital in a foreign country by listing their stocks on major foreign exchanges given the growth of equity markets are becoming more globalized (SNHU, 2015).
The book, "China's Rise: Challenges and Opportunities provides a detailed look into China’s important role in the global arena. China’s growth in the past few decades has made it a economic superpower, however, with this growth, challenges regarding its internal and external policies, military modernizations and energy dependences have risen.
This paper is about the rise and fall of Mt. Gox, the first and largest Bitcoin exchange service, very similar to a stock exchange. Mt. Gox was based in Japan. It was launched in 2010, by 2013 it was processing 70% of all Bitcoin transactions globally, but in February of 2014, the company realized it had no Bitcoins left in its “vault”. The company had literally lost billions of dollars in Bit...
With a population of 1.357 billion (2013)3, China is the most populated country in the world. Along with the huge population comes a market that is unmatched by any other country of the world. Both domestic companies and foreign companies want to tap into this large market that just recently embraced capitalism and entered into the World Trade Organization.
From the 1970s, there has been a wave of liberalization in China, which was introduced by Deng Xiaoping. This is one of the key reasons to the rise of China to be one of the economic giants in the world. In the last 25 years of the century, the Chinese economy has had massive economic growth, which has been 9.5 percent on a yearly basis. This has been of great significance of the country since it quadrupled the gross domestic product (GDP) of the country thus leading to saving of 400 million of their citizens from the threats of poverty. In the late 1970s, China was ranked twentieth in terms of trade volumes in the whole world as well as being predicted to be the world’s top nation concerning trading activities (Kaplan, 53). This further predicted the country to record the highest GDP growth in the whole world.
During the 1920s, approximately 20 million Americans took advantage of post-war prosperity by purchasing shares of stock in various securities exchanges. When the stock market crashed in 1929, the fortunes of many investors were lost. In addition, banks lost great sums of money in the Crash because they had invested heavily in the markets. When people feared their banks might not be able to pay back the money that depositors had in their accounts, a “run” on the banking system caused many bank failures. After the crash, public confidence in the market and the economy fell sharply. In response, Congress held hearings to identify the problems and look for solutions; the answer was found in the new SEC. The Commission was established in 1934 to enforce new securities laws that were passed with the Securities Act of 1933 and the Securities Exchange Act of 1934. The two new laws stated that “Companies publicly offering securities must tell the public the truth about their businesses, the securities they are selling and the risks involved in the investing.” Secondly, “People who sell and trade securities must treat investors fairly and honestly, putting investors’ interests first.”2
China and India both have ponderous bureaucracy systems created by history and tradition. Since the opening of China’s market to foreign investors in 1978 and India in 1991, they have been gradually moving from centrally planned economic system towards decentralisation. However, besides their continuous movements in order to provide businesses a better environment, significant problems still exist.
China's development is praised by the whole world. Its developments are not only in the economic aspect, but as well in its foreign affairs. Compared with other developed countries, China is a relatively young country. It began constructing itself in 1949. After 30 years of growth, company ownership had experienced unprecedented changes. Entirely, non-state-owned companies can now be more involved in sectors that used to be monopolized by state-owned companies.
There are many different pros and cons in life. Regardless of what someone is trying to compare. It is very interest when doing research on new country that an individual does not know much about that particular topic. What are the most important qualities in a country that help us function as a society. They are economic growth, strong structural system with government so the people can have a leader to follow in the right path.
Once there was a time when “shares in business corporations were rarely bought and sold because few companies were considered promising financial profits” (Blume 21). That is hard to believe considering almost everybody has invested in some stock today. The stock market went through some distinct changes since its inception, and has evolved into a shaping force in the world today. There is one idea that sparked the fire which produced the stock market: capitalism. Everything the stock market is, and was, rooted in the basic idea of capitalism. Without that idea, stocks and bonds would never have come to be.
Interests: The sooner it could distance itself from its American roots by adopting “.cn” domain, the sooner it becomes a member of “in-group” in Chinese cul...