Getting inside the pockets of China

Introduction

"China Stocks Hot" is a popular topic among stock investors in recent years, there are many areas of differences, compared with American and European stock markets, need to be understood by potential investors if they want to participate in the implementation of strong Bull of China from 2005 after the bear was beaten.

Color codes of price movement

Color codes for price movements are the direct opposite of Western scholarship. when the price movement is positive in relation to the closing price of previous day, the immediate price will be marked in red. Conversely, if the price moves down compared to the previous day's closing price immediately at this particular time will be green in color.

Shanghai Stock Exchange.

There are 2 surfboards-a and b shares. Shanghai shares are traded in Reminbi while Shanghai B are traded in dollars. due to currency control policy of China, Chinese places are limited at the farm and the US dollar Shanghai shares (B) the trading price. Therefore the residents primarily traded on the market while foreigners only could negotiate on the market of b. January 2008, there are 840 The-share companies quoted and 54 B-share counters.You can see that the B market is relatively small in size compared to a market there are companies that are listed in both the markets and (b).

Shenzhen Stock Exchange.

There are 2 surfboards-a and b shares. Shenzhen The actions are transacted in Reminbi and Shenzhen b are transacted in Hong Kong dollars.Residents primarily commercial market due to foreign currency control, while as foreign entities are restricted to the Hong Kong dollar priced B shares.January 2008, there are 670 shares listed on The Shenzhen market and only 55 market b. B market size is less than 10% of a market.

Hong Kong-H shares (companies of China or China related companies listed in Hong Kong) and Hong Kong companies are traded in Hong Kong dollars.Hong Kong international Exposure to Western funding, most established financial and legal systems have attracted many enterprises of China IPO in Hong Kong Stock Exchange, including many corporations to Government linked China as PetroChina, Bank of China and China Mobile, China Shenhua f.c.. a private shares listed on HKSE, at the end of 2007, is the Endeavor, an online trading platform for wholesalers for a MA Jack Western-educated.

Taiwan Stock Exchange index was sad for nearly 10 years. The main negative factor is a political issue in conflict with the Government of China, Taiwan and its resultance one-way drain investment flows to the Taiwan Taiwan china.com next presidential elections in March 2008 a new nationalist government could decode the current economic mess on the island and relaunch the confidence of the Taiwan stock market.Not advise any move to Taiwan stocks until the outcome of the elections on 22 March.

What foreigners can buy?

Only Shanghai and Shenzhen B shares, markets of Hong Kong and Taiwan are open to foreigners.The authority slowly opens channels through which foreigners could invest indirectly stocks listed on The Shanghai and Shenzhen exchanges.

Price differentials

The price differential between a and b shares of the same are significant.The actions of Wangke giant real estate developer, 28 January 2008, were marketed around 60% larger than their shares B in Shenzhen Stock Exchange. This means the value on a significant investment in inventory B If investors are optimistic about this company.

Some Chinese companies are both listed in China market and the stock exchange of Hong Kong. differential between prices and shares the same ex stock H, H shares of copper Jiangxi dynamic with a PE below 10 (stock code 358) are only 30% of a stock (stock code 600362) day closure of 25 January 2008.This illustrates the value of the investment shares H and unbelievable huge gaps between actions and h.

Buy and sell

Purchase shares a and b markets in Shanghai and Shenzhen markets can only be sold on the next trading day and there is no subsidy "Shorting" for the game; this is very different from the Hong Kong market and many Western exchanges, where the sale of shares could happen the next minute after you buy or shorting the stock.

Limits of price movement

Chinese price movements of stocks and B markets are limited to 5% or 10% per day of trading shares closed at $ 10 on the day before is only allowed to move between the lowest $ 9 higher limits of $ 11. these limits do not apply in the first trading day after its IPO and the above rule of stock exchange does not apply either in the Hong Kong market.

Stock market Trend of China

The locals are hopeful of a bull run of 10 years from 2005. the underlying forces back to sustain strength would be aggressive GDP growth averaging 10% over the last 10 years, the pressures to Chinese currency Reminbi global assessment, the new tax policy which entered into force from 1 January 2008, the successful restructuring of many large State enterprises, Government push for high quality manufacturing to further improve the export values and important international sports business events to be hosted by China in the nest some years, as the 2008 Beijing Olympic Games and Shanghai World Expo 2010.

Kiing is a freelance writer and investor stock North American and Asian stock markets [http://www.101stockinvestments.com] he writes for 101StockInvestments .com [http://www.101stockinvestments.com]-a free resource center for beginners or experienced market investors. This article could be distributed digitally, while site links remain intact.