The Chinese Stock Market

Nowadays, China has become the second largest economy in the world. The GDP (gross domestic product) of china was growing at 9.7% per year in average since 1978, which the year of Chinese “open door” politic founded. China also has become the biggest producer and consumer in many key agricultural and industrial markets and the largest FDI recipient among the developing countries. The performance of china in developing of economy is called “china’s economic miracle”, which be studied by many economists. However, there are also bad results with the development of economy in china such as environment disruption, corruption and

China has been moving to a market-based economy since 1978, and a relaxation of central control over certain aspects of the community has helped it become the largest developing economy and the second largest economy in the world when measured by Purchasing Power Parity.

Throughout time, many countries have needed to implement some sort of economic reform in order to strengthen their economy so that they can be more of a power on the world stage and to stabilize their country. The Chinese reforms were long in the making, an unfolding process that had spanned most of the 20th century and, unlike other countries such as Russia who were trying to do the same thing but whom eventually failed, China prospered, and increased its economy greatly. China has had the fastest growing economy in the world for the past two decades, with an annual growth rate of approximately 10 percent since the economic reforms in 1979, and now has the second largest GDP in the world, second only to the USA. Starting in 1979 they

Since the reform and opening up, the economy of China grows significantly, as an emerging economy, China's economy has made tremendous contributions to the global economy, and Renminbi has become one of the most important currency in the world. According to the survey conducted by China National Bureau of Statistics found that from 1979 to 2012, China has attained an annual average growth rate of 9.8% for its national economy, while the annual average growth of the world economy is only 2.8 % during the same period. In past 30 years, China's GDP surpassed Japan’s, China became the world 's second largest economy, in addition, the huge total volume of trade makes China become the world 's largest trading nation. The contribution of China’s

Over the past twenty years, China has grown ten percent annual growth and lifted nearly half of the 1.3 billion which is 800 million people out of poverty and growth in the middle class. Today, China boasts having the world’s second-largest economy.

Moreover, the recent decline in Chinese stock exchange by 30%, in 2015, when compared to the same period last year, has reduced the investment and development opportunities and softer near-term consumer

China, the most populous country in the world, has experienced an abnormal growth rate in Gross Domestic Product over the past decades. However, facts and statistics indicate an economic growth slowdown of the Asian giant.

The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.

As one of the largest and most populated countries in the world with 20% of the world’s population at 1,364,270,000 (2014) and a civilisation dating back to more than 3,500 years; China had one of the most stable and rapid economic growth rates of the past 30 years.

Since the 1980 's China is a develop country that never stop until now, and will rise to dominate the world in the Twenty First Century. China has a big potential geographic realm, population and natural resource which not else has in the world. Based in China 's economic miracle from oriented economy to open market it is presented a transitions economy with more orderly, established, and accommodating that could have been imagined for all of us. It started from zero economy level and will grow may falter because existed same good reasons for which I agree. China is an example of the great economic growth with capacity and influence in all world because; it has massive global trade and investment ties, it has positive result of structural reforms with free market force and it has a rule military armed force.

This dramatic system of economic reform has benefited China in many ways. However, there are still a number of issues which the country needs to address if it wants to maintain long-term economic stability.

With the outbreak of the U.S. financial crisis in 2008, the whole world's financial situation is not good, but except one, which is China. However, many people find out that China is walking on the old U.S. economic way, which means China will have economic crisis either. So right now, all the eyes from all the countries are watching at China’s economy, because if Chinese economic collapse, there are no more people buy Japanese animations and European luxuries. And after the economic crisis, China will recovery U.S. Treasury bonds, but American unable to pay, then the whole world economy is facing collapse; we can call that butterfly effect. So right now, in this context, the same conditions, and the same nature of the Chinese economy grows up, any black swan events are likely to be the fuse of Chinese financial crisis, and even the world economic crisis’ fuse. For example, the author of “Chinese Citizens Have Their Eyes on Bubble,” C. Cindy Fan mentions that the fuse of Chinese economic crisis is real estate. Right now, Chinese people put all their savings into real estate, which led to the housing bubble, but because of consumer demand, the government is unable to stop it. (Fan) I agree with Fan’s idea, which is Chinese economy will collapse because of Chinese real estate bubble.

In 2015, Chinese stock market climbed to an unprecedented high point. However, the real economy cannot catch on the inflated stock market. The creation of a bull market by increasing leverages finally burst the bubble. The Chinese government initiates extraordinary measures such as buying stocks, freezing IPO, prohibiting big shareholder to sale, and injecting stimulus. Overall, the government has spent 236 billion dollars, but the policy is not effective.

China’s economic growth is expanding at a great pace, while other countries may be at a standstill. China has been the world 's fastest-growing economy. One of the main stimuli twelve years ago was the release of Hong Kong to China from Great Britain. The second largest stimulus was the opening of free trade with other countries, in which China was originally a closed trade country. Foreign trade and investment have played a crucial role in the growth of the

Today, China has a large excess of capital. The international reserves of China are currently above $3 trillion. Because of the fact that China’s financial system is very small and undeveloped for the immensity of the nation,  China needs to have a greater amount of capital outflows.. For example, in the United States alone, Chinese consumers spent $12 billion on U.S, real estate in only the past year. This trend means that U.S and other foreign real estate will continue to be bought Chinese investors both for residential usage and for hard assets like farmland or similar physical capital.