$18.99

The Stock Exchange Market in Chin Essay

The Stock Exchange Market in Chin, 488 words essay example

Essay Topic: stock market, time, power, government

The Stock Exchange Market in China has a complex and elaborate history that reaches back to the 19th century. The whole of the market is centered at the Shanghai Stock Exchange, nevertheless it is directly tied to two more Stock Exchanges in Shenzhen and Hong Kong. The Stock Exchange's establishment took a considerably long time, almost as much as the growth in business trading did with foreign market. The exchange has even been closed down due to several reasons including war sometimes in history.
The Chinese Stock Exchange Market followed a number of steps in its establishment. To begin with, subsequent to the first Opium War, the Nanking Treaty established a certain area in Shanghai in 1842 as an International Settlement. As a result, foreign markets began to emerge in the area that in return climaxed the introduction of security trading's around the late 1860s. The first share list appeared in mid-1866 and prompted the formation of joint stock markets and several banks. What followed this was a great interest in diversification especially for trading houses and investors. The Chinese mining industry started to boom all through the 1880s, and led to the establishment of the Shanghai Share brokers Association in 1891, which created the first Stock Exchange in China. Almost all the shares were provided by the local companies and banks grabbed the prospect to control the majority of the private shares. Within the end of that century, the Shanghai and Hong Kong banks had already consolidated most of the trading shares from the foreign bases. The Share brokers Association established another Stock Exchange in Hong Kong in 1904, and expanded the Chinese grip of the world economy.
Shanghai Securities and Commodities Exchange was formed in 1920. Subsequent to this was the formation of the Shanghai Chinese Merchant Exchange in 1921. The two eventually combined efforts in 1929 to form Shanghai Stock Exchange Market. At that time, rubber had become a prime stock as some of the foreign companies, for instance Japanese companies began consolidating the economic control it had over Chinese Stock Market. The Japanese military, in 1941, took control of Shanghai and this terminated the operations of the Stock Market. After this war, the Stock Market re-established itself but in 1949 it was closed again due to the communist revolution.
The Stock Market reopened again later in 1990. This was caused by the end of the Cultural Revolution in the 1970s which enabled Xiaoping Deng to take over power of the nation. China then opened itself up for foreigners in 1978 making several companies to begin trading securities especially with foreign companies. This move prompted a surge in economic reform which led to continued business development. During the 1980s, a socialist market economy was created, that ultimately led to the reopening of the Shanghai Stock Exchange Market. China also opened a secondary exchange at Shenzhen which was aimed at government securities and technology. The Hong Kong Stock Exchange got incorporated into the Chinese system in 1997.

Your sleepful night is just one step away.
You sleep, we work.