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Here I want to offer some points as to why the Chinese stock market is relatively volatile yet fragile at the same time while comparing to its western counterparts. A reminiscence of the 2015 market crash shows how fragile such a system is, breaking down in the matter of 2 years despite China's fast economic growth. It is evident that such economic growth is not, as many would have thought, reflected in the Chinese stock market. One of the biggest reasons for this, however, is not a lack of economically capable companies, a short glimpse at giants such as XiaoMi and Baidu would baffle many as to why the Chinese market is not performing up to such standards. The problem lies in the system itself. With the Chinese financial agency having utmost power in granting utterly any company its IPO, most companies, around 80% of the market share, though most of them are significantly disqualified. Investors have to be really smart to distinguish a few good IPOs in a sea of losers, a much harsher process than their American counterparts. 

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