The signing of this agreement may well end the delisting crisis facing U.S.-listed Chinese companies. This agreement is set to lay the groundwork for further cooperation in this regard. It also reveals the truth that only cooperation can bring win-win results.
Sep 9, 2022
SMEs will inject new vitality into the Chinese economy, both helping to cushion the negative impact from the ravaging pandemic and serve China’s long-term economic growth.
Sep 18, 2021
China’s stock market is once again sending financial shock waves around the world, with trading suspended on Jan. 4 and 7 leading to capital market uncertainty. The country’s newly implemented “Circuit Breakers Mechanism” (CBM), a kind of trading curb introduced by the China Securities Regulatory Commission (CSRC), received much of the blame for the volatility. But what is a circuit breaker mechanism exactly? It can be thought of similarly as a fuse in any common household appliance. A fuse exists for the express purpose of protecting its user from the dangers associated with overcurrent, dangers that include short circuits, which can in turn lead to catastrophic fires without the protection of preventative resistors. Now take that real-life level of protection and apply it metaphorically to a financial market. The systematic risk associated with finance, such as shares plunges, are triggered by the prevailing fears of the investors. These fears in turn dry up market liquidity and paralyze trading. As part of a package program for China’s financial system reform, the CBM was designed to calm the country’s capital markets in extreme circumstances. The primary aspect of China’s CBM is that if the CSI 300 stock index falls by 5 percent, then trading is halted for 15 minutes–hence the term circuit breaker. (Also, the CSI 300 index is a stock market […]
Jan 15, 2016
“Two months ago, I thought I was stupid for not piling into the equity market. People around me were making money so easily from their investments,” says Johnny Chen, 30, my colleague and an amateur investor in the Chinese stock market. “Now I feel I am even more stupid for not cashing out at its peak.” This feeling of regret is spreading like wildfire among amateur investors since the Shanghai Composite Index’s dramatic decline on June 26. In recent days, many of my colleagues are debating whether the bull run is over and if Chinese stocks have entered a bear market. As a new media startup, most of the staff where I work were born in the 1980s or 90s, as I was, graduating from college between 2006 and 2007, a time when China last experienced a bullish market. We would have missed out then as we were just starting out on our careers and not “wealthy” (and we are still not, media being the mostly low-paying career it is globally). Many of China’s new investors are inexperienced retail investors who are likely following the advice of friends or media, according to a recent report from Forbes. These retail investors are one of the biggest drivers behind the Chinese markets’ rally over the past year. The number of investors who have opened new stock accounts so far this year is more than the total number for all of 2012 and 2013 combined, according to data from China […]
Jul 14, 2015