China Capital Markets Research

Chinese investors continue to join the market rally at an unprecedented pace. Records were broken as 1.6 million accounts were opened from March 23rd and March 27th and only slightly less in the following week – 1.5 million...more than the population of a small city..., well a small city outside of China.

As China's bull market continues, new accounts are being opened and trading volume is growing. One unexpected outcome is that existing capital markets technology is being stress tested and it doesn't seem to be coping that well...

China’s capital markets are maturing. Futures and margin trading had already been launched, but this week we saw equity options for the first time in China. The new derivatives trading commenced with big fanfare, with main regulators as well as top government officials present at the opening ceremony, emphasizing the importance of the event.

2014 was a good year to be a bank in China, but apparently an even better one to be a brokerage. The latest data from the Securities Association of China shows that 2014 total income for the industry was 260.3 billion RMB (Chinese Yuan), up 63% from 2013.

A bit outside of our normal commentary, but an article sheds light on how low-latency technology is important in China, but for buying train tickets.

Alibaba is yet again launching another investment product, and this time it will give its Alipay customers the option to invest in gold.

Conventional wisdom and the written history of capital markets would have it that the value of a particular stock is based on the potential of future returns in the form of dividends and the underlying book value of the company. Not ones to stick with tradition, China’s mainland investors have often defied this basic tenant of reason and developed their own ideas about what the price of any particular stock should be.

After years of bearish sentiments among Chinese investors, the Shanghai Composite Index seems to be picking up again and rises to highest level since August 2011.

Alibaba's not so subtle move into China's financial services industry took another step forward today with an additional investment into financial data and software provider Hundsun.

According to new data released by China Securities Depository and Clearing (CSDC), Chinese investors have opened 243,073 new A-share accounts in the period between November 10th and November 14th.

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