Question

In: Finance

Describe what is unique to Chinese stock market in terms of market participants compared with developed...

Describe what is unique to Chinese stock market in terms of market participants compared with developed stock markets?

Solutions

Expert Solution

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.


Related Solutions

Describe the major participants in the foreign exchange market and their objectives.
Describe the major participants in the foreign exchange market and their objectives.
Describe the pros and cons of CDMA as compared to the TDMA system in terms of:...
Describe the pros and cons of CDMA as compared to the TDMA system in terms of: (a) communication capacity; (b) sensitivity to frequency selective fading; and (c) handoff.
1. What step is unique in endocrine system communication compared to the synapse? 2. What is...
1. What step is unique in endocrine system communication compared to the synapse? 2. What is the major benefit to an animal of a nervous system instead of merely an endocrine system? 3. How is the pancreas both an endocrine and an exocrine gland? Indicate the signals that trigger the release of thyroid hormone and epinephrine. 4. Release of T4: 5. Release of Adrenalin:
When compared to each other, what are some unique advantages of the spread plate technique? What...
When compared to each other, what are some unique advantages of the spread plate technique? What are some unique advantages to using the pour plate technique? What are some disadvantages unique to each technique? Assume the techniques were done correctly and no contamination occurred. TECHNIQUE spread plate pour plate unique advantages unique disadvantages
What are some unique aspects of our sense of olfaction compared to other special senses? What...
What are some unique aspects of our sense of olfaction compared to other special senses? What is anosmia? Would this affect our sense of taste? Explain.
What are the five broad categories of institutional participants operate in the market:
What are the five broad categories of institutional participants operate in the market:
Cardiac muscle is unique in terms of the number and type of cell-to-cell adhesion structures. Describe...
Cardiac muscle is unique in terms of the number and type of cell-to-cell adhesion structures. Describe at least two, providing a link between the adhesion structures and the resulting functions of cardiac cells.
T or F: The stock market far exceeds the bond market in terms of size of...
T or F: The stock market far exceeds the bond market in terms of size of new capital raised. T or F: The NASDAQ Market is composed of large nationwide companies that are traded in the over-the-counter market. When global capital markets collectively react to international events, like Russia's default on its sovereign debt, it is common to find A.that there is no impact on the trade of foreign goods. B.an impact on the ability to raise capital. C.that Wall...
1. What is likely to increase in a monopoly market compared to a competitive market? A....
1. What is likely to increase in a monopoly market compared to a competitive market? A. Consumer surplus is likely to increase B. Community surplus is likely to increase C. Producer surplus is likely to increase D. Social welfare is likely to increase 2. A deadweight social burden triangle (allocative inefficiency) occurs if a business produces an output where: A. The total benefit to society equals the total cost B. There is the biggest possible negative difference between marginal benefit...
It is commonly argued that fewer risk factors (as compared to the stock market) explain expected...
It is commonly argued that fewer risk factors (as compared to the stock market) explain expected returns in bonds. Indicate the main risk factors that empirical studies on the performance evaluation of bond funds consider and explain the risks they aim to capture.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT