An analysis of the Chinese stock market

With the introduction of a market economy, China is experiencing rapid economic development. As an indispensable component to its economic system, China’s stock market came through its initial set-up period, overcame challenges, suffered pains, and is currently progressing towards to an internationalised direction. However, its immaturity hinders its continuous development and the country’s economic expansion. This paper focuses on the status quo of Chinese stock market and centres on problems that have greatly contributed to the capital market’s inefficiency. With its main objective, this paper begins with a brief introduction of Chinese stock market. Then, it analyses Chinese stock market’s fundamental problems of its structure, shares, regulations, and listed companies. Next, regulations and key solutions to the problematic market are presented. Finally, the paper ends with general suggestions on Chinese stock market’s further development direction.