China’s Stock Market
---A Comparative Analysis with Western Stock Markets
James Zhang 2014 June
（1）
When mentioning China’s Stock Market, many people, no matter in the country or abroad, would be dejectedly sighing with vexation on their faces.The word “tiger”in the Chinese saying that someone becomes jittery when talking about the tiger, it is said, would be replaced by “stock” and would be collected into the Chinese Idioms Dictionary.
Chinese stock market, the same as the Chinese football, is a combined or synthesized word of disappointment,exasperation, sadness,and melancholies.
It is known that about 98% of the Chinese individual stock investors have lost their money, and even some lost to the degree of jumping off the building.The Chinese stock market has made thousands of individual investors lose their confidence！
However, what mostly astounds and obscures quite a number of experts and professionals is, after over 30 years’rapid development at 2-digits high growth rate with the world-shaking new look of the whole country and the great change of the Chinese people’s life, the Chinese stock market has remained same, isolated from world’s stock markets years’uptrend. It macroscopically looks like a pond of stagnant or lifeless water; Macroscopically it looks like a reinless wild horse with no direction,no regulation,and no potency. China’s stock market and China’s fast economic expansion, being poles apart,are surprisingly and obviously not coordinated.
China’stock market, another Goldbach Conjecture in the World Economy?!
Like China’s politics, economy, history, culture and geography, China’s stock market has her particular characteristics.
In China, no matter in big cities or small towns there are many trading halls in which none of material tradings actually occurs. An important part of their daily life,thousands of the individual investors regularly by turns go to these trading halls to watch the big trading panels, one another discuss or argue a stock’s trend and exchange information. Not in China, and not in the trading halls, it is impossible to feel the atmosphere of hubbub and ardency with boisterous noise of the individual investors. Also it is impossible to experience the excited scenes of flying newspapers, magazines, forums as well as all kinds of hearsays about stocks on the street conners. None of this can be viewed in North America since there is no such kind trading halls and naturally no watching panels in North America’s cities and towns,whether big or small.
First, there are so many individual investors in China.It is roughly summed up that one out of ten are investors at peak period; then it came to 25:1 when the stock market became bear.In recent two years many individual investors left the stock market due to appearance of Alipay, etc.But the ratio may still be 35:1.
This kind of situation is rarely seen in the western countries. After the end of Wold War Two, Keynes’economic ideas has wielded critical impact over the western capitalist world for over half a century.Summing up the world Great Depression that broke out in 1930s, Keynes deems that one of the important reasons is inefficiency of consumption.From this viewpoint Keynes thinks it is necessary for the state to intervene and adjust economy by means of the government’s financial deficit and debt borrowing in order to increase consumption.The establishment of the social security and welfare systems have released worries of the sick people and the seniors and largely promoted expenditures. In the 1960s, the spread of credit cards in the advanced economies further let individual premature consumption become fashionable and the word moon-lite came out. （to be continued)
---A Comparative Analysis with Western Stock Markets
James Zhang 2014 June
（1）
When mentioning China’s Stock Market, many people, no matter in the country or abroad, would be dejectedly sighing with vexation on their faces.The word “tiger”in the Chinese saying that someone becomes jittery when talking about the tiger, it is said, would be replaced by “stock” and would be collected into the Chinese Idioms Dictionary.
Chinese stock market, the same as the Chinese football, is a combined or synthesized word of disappointment,exasperation, sadness,and melancholies.
It is known that about 98% of the Chinese individual stock investors have lost their money, and even some lost to the degree of jumping off the building.The Chinese stock market has made thousands of individual investors lose their confidence！
However, what mostly astounds and obscures quite a number of experts and professionals is, after over 30 years’rapid development at 2-digits high growth rate with the world-shaking new look of the whole country and the great change of the Chinese people’s life, the Chinese stock market has remained same, isolated from world’s stock markets years’uptrend. It macroscopically looks like a pond of stagnant or lifeless water; Macroscopically it looks like a reinless wild horse with no direction,no regulation,and no potency. China’s stock market and China’s fast economic expansion, being poles apart,are surprisingly and obviously not coordinated.
China’stock market, another Goldbach Conjecture in the World Economy?!
Like China’s politics, economy, history, culture and geography, China’s stock market has her particular characteristics.
In China, no matter in big cities or small towns there are many trading halls in which none of material tradings actually occurs. An important part of their daily life,thousands of the individual investors regularly by turns go to these trading halls to watch the big trading panels, one another discuss or argue a stock’s trend and exchange information. Not in China, and not in the trading halls, it is impossible to feel the atmosphere of hubbub and ardency with boisterous noise of the individual investors. Also it is impossible to experience the excited scenes of flying newspapers, magazines, forums as well as all kinds of hearsays about stocks on the street conners. None of this can be viewed in North America since there is no such kind trading halls and naturally no watching panels in North America’s cities and towns,whether big or small.
First, there are so many individual investors in China.It is roughly summed up that one out of ten are investors at peak period; then it came to 25:1 when the stock market became bear.In recent two years many individual investors left the stock market due to appearance of Alipay, etc.But the ratio may still be 35:1.
This kind of situation is rarely seen in the western countries. After the end of Wold War Two, Keynes’economic ideas has wielded critical impact over the western capitalist world for over half a century.Summing up the world Great Depression that broke out in 1930s, Keynes deems that one of the important reasons is inefficiency of consumption.From this viewpoint Keynes thinks it is necessary for the state to intervene and adjust economy by means of the government’s financial deficit and debt borrowing in order to increase consumption.The establishment of the social security and welfare systems have released worries of the sick people and the seniors and largely promoted expenditures. In the 1960s, the spread of credit cards in the advanced economies further let individual premature consumption become fashionable and the word moon-lite came out. （to be continued)
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