International Equity Markets
In the world today, countries have different ways of raising funds. This commonly achieved through the stock market, which is integral part of country’s capital market. Through, the stock market countries of the world are able to raised funds. Here, foreign and country’s stock, corporate bond and government bonds are traded. This issue leads us to analysis what has been happening to china’s stock market. In this essay, the china’s stock market will be broadly analyzed.
China has witnessed stock trading since the 1860s, but Shanghai Stock Market was established in 1990. Afterwards, the stock market has been developing. Therefore, in analyzing the market we shall look at how the market has been doing for the past five years. From 2002-2007, the stock market has been developing. In 2002, the stock market in China has 715 listed companies, 828 listed securities, which in 2007 the numbers have increased. In addition, the market capitalization has been improving over the past five years. By the end of 2007, the total market capitalization was RMB 26.98 trillion with 860 listed companies and the capital raised was over RMB 660. These have been predicted to improve over the next years.
In a way the stock market in China in not that risky. However, the current global financial crises have been a major risk facing most stock markets in the world. The Shanghai Stock Market is not left out. The China’s stock market in a way has been influenced by the global financial crises. This has been the major risk facing the stock market.
In my opinion, I could invest in the Shanghai Stock Market since the market has a bright future.
The China’s stock market has been a very good market for raising funds. I would combine and invest in the stock market with an investment portfolio that contains mostly United States of America securities.
In view of the fact that, in the world today the US dollar has been the most acceptable currency. The US dollar rate has been consistent and this is good for the securities. With the current global financial crises that has greatly influenced the value of Euro, Pounds, the value of the US dollar remain consistent and this gives a long-term benefit indication in any investment in the US dollar. This in a way influences the US securities and will the future benefits from the investment. The future of an investment in US securities in China’s stock market is predictable. Since, the real worth of any currency is important for investment then investment in the US securities will have a good payback in the long-term.
There are advantages that could be attached to the way the Shanghai’s Stock Market portfolio is designed. This portfolio is design in a way to include different securities. In addition, this design has given the stock market options into ways of raising funds and building the financial confidence of the economy as a whole.
In conclusion, the China’s stock market has been improving over the years. The market is greatly faced with opportunities and challenges to boost the economy. In other to continue this stock market development, the government in China must enact and formulate policies that will have a great influence on the market.
References:
China Stock Market, (2008). China Stock Market Securities Index. China Stock Market News and Information. China Stock Market.
Shanghai Stock Exchange, (2008). Market Summary: About SSE. Shanghai Stock Exchange.
Power and Interest News Report, (2007). Economic Brief: China’s Stock Market Bubble. Power and Interest News Report (PINR).
Powell .B, (2007). China’s Stock Market Mania. Business and Technology, Times Story. Times.com
