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Emergence and Development of Chinese Stock Market

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  • Michael Gaffikin
  • Tianshu Liu

Abstract

This study introduces the emergence causes and compares and analyzes development of Chinese stock market from 1991 to 2000 from size, surveillance system, market structure, investor structure and statues, return and risk and volatility characters of share prices aspects. This study shows that development pace is very fast, however Chinese stock market is volatile and not efficient. Trading volume and interest rate redound to further explain volatility of share prices. This paper is concluded by highlighting some of the difficulties faced by China in developing its stock market in the context of traditional finance and economic theory and the experience of developed economies.

Suggested Citation

  • Michael Gaffikin & Tianshu Liu, 2009. "Emergence and Development of Chinese Stock Market," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 12(1), pages 193-227, March.
    • Handle: RePEc:sae:intare:v:12:y:2009:i:1:p:193-227
    DOI: 10.1177/223386590901200110
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    References listed on IDEAS

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