In: Finance
Describe what is unique to Chinese stock market in terms of market participants compared with developed stock markets?
Uniqueness of Chinese stock market in terms of market participants compared to other developed stock market are as follows-
A. These market participants are generally investing into China for the longer period of time because they had already believed in the turnaround story of the China and they have made hefty sum of money.
B. These investors are also not getting panicked by the Global sell off because they view China as a alternate world and they are in fact increasing more exposure at the time of global downturn in China.
C. These investors are also provided with optimum support by the regulators because these market participants are highly transparent and not engaging into frauds.
D. Chinese stock markets are thinly traded in compared to other develop stock market because there is a high concentration of domestic investors and it is less correlated with the Global market.
E. Chinese market are also significantly impacted by the pro investor government of China which is trying to always support the investor's money as it can be seen that recently it had banned the short selling at the times of the coronavirus crisis.