Comparison of the Shanghai Stock Exchange and the Hong Kong Stock Exchange

Kai Liu

Bachelor's thesis

Abstract:

During last decade, global economy developed rapidly, especially China. Nearly every year, China has a stable GDP growth remained at eight to nine percentage points, which shows the steady increase of China‘s overall economic situation. So Chinese are richer than before. Many foreigners are optimistic about the huge market in China, which may has high profitability. More and more money flows into China financial market, both from foreign investors and from local residents. Stock markets are the core part of financial markets, and stock exchanges are the most important components of stock markets. Individual investors and institutional investors both invest their money in the stock exchanges. In China, the Shanghai Stock Exchange and the Hong Kong Stock Exchange are the most important exchanges, and they are functioning well. Both Shanghai and Hong Kong want to be the first-level international financial center in the world with the help of government. They have their own characteristics, similarities and differences, advantages and disadvantages. The objective of the thesis is the comparison of the stock exchanges in Shanghai and Hong Kong, including a conclusion how these two exchanges should work in the future. In the first part of thesis, there is the description of characteristics of the main principles of the stock exchange markets, including histories, definition and functions of the stock exchange, and an overview of worldwide stock exchanges. In the second part and third part of thesis, there are descriptions of the functioning of the Shanghai Exchange and the Hong Kong Stock Exchange. At last, characteristics of the two stock exchanges are compared, such as their histories, regulations, products, services, and there is a prediction about their future operations.

Abstract:

During last decade, global economy developed rapidly, especially China. Nearly every year, China has a stable GDP growth remained at eight to nine percentage points, which shows the steady increase of China‘s overall economic situation. So Chinese are richer than before. Many foreigners are optimistic about the huge market in China, which may has high profitability. More and more money flows into China financial market, both from foreign investors and from local residents. Stock markets are the core part of financial markets, and stock exchanges are the most important components of stock markets. Individual investors and institutional investors both invest their money in the stock exchanges. In China, the Shanghai Stock Exchange and the Hong Kong Stock Exchange are the most important exchanges, and they are functioning well. Both Shanghai and Hong Kong want to be the first-level international financial center in the world with the help of government. They have their own characteristics, similarities and differences, advantages and disadvantages. The objective of the thesis is the comparison of the stock exchanges in Shanghai and Hong Kong, including a conclusion how these two exchanges should work in the future. In the first part of thesis, there is the description of characteristics of the main principles of the stock exchange markets, including histories, definition and functions of the stock exchange, and an overview of worldwide stock exchanges. In the second part and third part of thesis, there are descriptions of the functioning of the Shanghai Exchange and the Hong Kong Stock Exchange. At last, characteristics of the two stock exchanges are compared, such as their histories, regulations, products, services, and there is a prediction about their future operations.

Keywords

Comparison, stock exchange, history, indexes, market capitalization.

Keywords

Comparison, stock exchange, history, indexes, market capitalization.

Language used: English

Date on which the thesis was submitted / produced: 11. 5. 2012

Thesis defence

• Date of defence: 26. 6. 2012
• Supervisor: Kateřina Kořená
• Reader: Martina Novotná

VŠB - Technical University of Ostrava

Ekonomická fakulta

Bachelor programme / field:
Hospodářská politika a správa / Finance