Chinese Stock Market and Stock Exchange Informational Resource
The Chinese Stock Market is a mystery to many Americans. American's need to really find out how this economic system works since their economic system is closely allied to ours in many ways. The Chinese stock market actually consists of three separate stock exchanges, probably the best known and the largest is the Shanghai exchange, there is also the Shenzen exchange and the Hong Kong Exchange. All of them fill a vital function in the Chinese economy and the economy of the world.
The Shanghai exchange is not entirely open to foreign investors. It is open to all Chinese investors. The Shanghai Stock Exchange is the largest in the world with a combined total exchange rate of 3.7 trillion dollars. There are some foreign investors in this market as well as Chinese. It is a well used market with over 860 separate companies. It is the largest of the three Chinese stock exchanges. It is the sixth largest market in the world.
The Shanghai stock exchange began after the treaty of Nanking and the settlement of the Opium war which made the market open to investors. The market was open to investors sometime during the 1860's and had it's first trade in 1866. In 1891 the market got more prominence with mining shares. In 1904 it got it's final name as the Shanghai Stock Exchange. By the 1930's the Shanghai exchange reached it's full prominence. It was the financial capital of the far east.
The other Chinese markets have similar stories. The Hong Kong Exchange was also established in 1891 and reached it's full prominence in the 1940's. It is the third largest Asian exchange next to the Tokyo and the Shanghi exchange. It does approximately 3.7 trillion in trade throughout the year. It is open for business daily but takes an afternoon break during the trading day. It is located in central Hong Kong.
The third market is the Shenzen exchange. It is the smallest of three markets. It still does a considerable volume of trade. It is located in Shenzen China. It is the ninth largest market in Asian. It has over 1,500 companies that trade on it.
These three markets are all interrelated and make up the China Stock exchange. The three exchanges all trade on a given day and the composite of the three markets make up the Chinese trading day. They generally trade similarly and if a trading day is good on one of the exchanges it more than likely is on the other ones also. It is best to check all three markets though to see how stock has traded for the day.
The China markets can give a lot of indicators as to how the world's economy is going in general since so many stocks are traded in the Chinese stock market. There are so many predictors that many people feel that by watching the Asian markets they can spot the trends in the US market and the rest of the world's economy.
It is very interesting to see how the Chinese markets do in comparison to the US market and the other Asian markets.
