• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

What Affects the Stock Market of China?

Extracts from this document...


What Affects the Stock Market of China? Introduction: In 1990, two Stock Exchanges were built in Shanghai and Shenzhen, after which the stock market of China developed very quickly. The number of companies entering into the stock market increased from 8 in 1990 to over 1000 in 2002. And the number of investors also increased magically from 6 million in 1996 to 50 million in 2002. In addition, the Shanghai Composite Index rush to 2245 points today compared with 100 points at the beginning. Obviously, the Chinese stock market is younger than those of western countries, but it really developed very quickly. Moreover, China is now carrying out "socialism market economy", which help to perfect the system of its stock marketing. In many people's opinions, the economy of China is not running according to the economics disciplines, and it is controlled by the central government instead. As the result of this, the stock market is controlled by the central government too. So, this search report attempts to point out what in deed affects the stock market of China. ...read more.


Findings/Results: According to the data and charts searched, the stock market of China has been viewed a quick development. In 1990, the stock index was 100 points; in 2001 the stock index was 2245 points, which raised 2245 per cent. During year 1990 and 2002, some sudden events happened in China, for example Mr. Deng Xiaoping, the leader of China, died, HONG KONG came back to China, Asian financial crisis, Chinese embassy in Yugoslavia was attacked, China was accepted to join in WTO, and China succeeded on its application to hold Olympic Game in 2008. All of these sudden events did make the stock market shake temporarily. According the data of Chinese economy, from 1990 to 2000, GDP grew strongly. Refer to chart II, it shows that Chinese economy grew steadily in the lasted ten years. It continued to grow at a rate around 7%, which was higher than that of most other countries. The chart of USA and UK stock exchange shows that the Dow John Industry index and FTSE 100 Index all dived about 40 per cent from 2000 to 2003. ...read more.


But are these findings true, impersonal and all-sided? Actually, this search report always attempted to choose relevant and useful data. First, various dada were addressed. Some reference books were about how to buy stock, some were about European stock markets, and some published about ten years ago. After reading the abstract, four reference books were chosen which were thought more relevant and useful than others. They provide information about relationship between Chinese stock market and Chinese economy. Some data and charts were collected from Internet; which were also very from each other. It is important to make the data true and authoritative. For this reason, some little or private websites were not chosen, and most data come from the big, famous, and governmental websites such as yahoo.com, FT.com and Stockstar.com. On the other hand, there are about ten different stock indexes in Chinese stock market, why the Shanghai composite index was chosen? There are lots of different indexes of Chinese economy, why GDP was chosen? The western stock markets were not only USA and UK, why they were chosen? It is clear that they are all very typical and famous so that help to demonstrate things more clearly and trustfully. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Chinese car market overview. Citroen case study

    Then by entering the Chinese market, we would like to follow our international development strategy and to adapt our communication to the chinese cultural environment. Advertising Then, as we said before, we have to target both family and individuals. It means that we should have two messages as different as the targets could be.

  2. Use game theory to analyze an oligopoly competition of two great rivals, Wal-Mart and ...

    Wal-Mart has spent more than half a billion dollars for information technology facilities to connect their global stores with headquarters. Meanwhile, Wal-Mart requests suppliers to adopt electronic data interchange system (EDI).Using this EDI Wal-Mart can transfer information swiftly and has saved three fourth of stocking-holding costs.

  1. This report will establish the opportunities and threats presented to Sony by the EU ...

    Also Sony may feel that as they have a great population to target their goods they can produce much products, this may lead to over capacity of the market because they is too much businesses and not enough customers.

  2. The Stock market and modern economy

    The invention of stock market gave a strong momentum in accelerating the scale of companies and economy as a whole by allowing the inflow of capital held by general public. To my view, the emergence of shares and stock exchange marked commencement of the modern economy era.

  1. The sports shoe industry in China

    Abuse and fines are common here. While working, the workers are not allowed to talk to their co-workers, and if they disobey this rule, they are warned and then fined. Most of the workers have been yelled at by their supervisors.

  2. Environmental Analysis Of Landis Lund.

    Landis Lund employees objectives are fulfilled across the workforce, for those that are here just to get paid, providing they complete what is asked of them, they are OK. If you want to better yourself and the company, training is available where appropriate (workers in the machine shop do not

  1. The Relevant Market

    Changes in Aggregate Demand Changes in the level of Aggregate Demand (AD) are critical determinants of trade cycle fluctuations. GDP is the sum of consumption, investment, government purchases and net exports. Y = C + I + G + NX The following table outlines these elements and influencing factors.

  2. Tourism market analysis Polish economy

    increased competition; more mature and experienced traveller; aging western population; shift of market power from producer to consumers; regulation and restriction of access to congested sites; importance of sustainable tourism development and increased use of new technologies. Due to the geographical, political as well as cultural reasons of Central and

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work