The Comparison between Stocks of Chinese Companies in U.S. and Stocks in China using SAS. It needs to be at least 3500 words. The stock market has grown rapidly over the years from the commencement of big firm’s addition in the last few years. Moreover, at the present more than 80% of the overall capitalization of Hong Kong Stock Exchange (HKSE) market that abides to the US rules and regulations and is open to the outside investors. This is in consistence of China as a mainland creating a market of H share. Putting together the listed firms on the list and in trade in these 3 exchanges, the stock exchange of China is the 2nd biggest worldwide, just following the markets of US equity.
On the other hand, the equity market of China has become substandard, in particular in comparison to the GDP growth. In December 31, 1991 since as per December 31, 1990 there was barely any listed stock. Ironically, the composite of Shanghai has the most terrible performing index globally. The big question here is. how is it that the world rapidly evolving economy with a realistic growth rate factor of GDP being 8 since the year 1991, gives a bad performance in the stock market. I can say not much research on this has been done to address this big question. This is then, is the aim of this paper.
When USA had problems, investors began searching for new markets, in which there would be high probability of earning cash. In the last 30 years China has shown growth economically, though its stock market shows bad results in performance. Consequently, this has caused attraction to quite a number of investors. In spite of its quick growth economically, Chinese stock market fails to show any significant improvement. Moreover, Chinese stock market got particular features that ought to be done analysis and assessment by those wishing to invest. The stock market of China was no go zone for a given period due to the unique characteristics of its market that had cut down its market integrity.Hide