Chinese stock market capitalization worth nearly $10 TRILLION

[midnightmasala]

Wow,you guys are so rich

Chinese stock market is bigger than Germany, France, UK and Canada combined.

Chinese stock market is now TWICE the size of Japan just like China is TWICE the size of the Japanese economy.

Wow.... Too good

 

[TaiShang]

Gambling on their own, none of other people's business. People have the right to stay conservative, or aggressive, or even stupid, it's their choice. If people need lessons to get matured, so be it. The role of government isn't about saving the stupid, protecting the greedy, but only to promote fairness, to uphold justice.

Massive loans? I wish the companies I have invested have higher leverages but the fact is that unless they are SOE they don't due to the crazily-regulated banking/financing sector in China. From listco's POV, sure it's great time to issue new shares. What debt-equity conversion you are talking about? CB's? There is no conversion otherwise. Whatever you are talking about, yes, a lower debt-equity ratio is expected.

Thank you for trashing the troll.

Let's see if he is gonna make a come back, using the population or CCP argument.

 

[xyxmt]

where is supa powa endia

its 5 times the GDP of Shupa pawa

 

[Icewolf]

where is supa powa endia

Supa pawa India rejects the missionary (mleccha) concept of stock market, and are against the Mughal and colonial dominated world.

They are using Vedic stock market , check that. $100 trillion and growing in Vedic numbers

 

[througheye]

Chinese are rich....very very rich....

We are not very much rich. China is still a developing country.
But at least we are much much richer than Indians.

 

[chathrapathi]

We are not very much rich. China is still a developing country.
But at least we are much much richer than Indians.

Offcourse you are richer than India and we are proud that some countries are so obsessed with India

 

[Huan]

Offcourse you are richer than India and we are proud that some countries are so obsessed with India

I guess they are using India like a unit of measurement. China is like a meter while India is like a centimeter. No offense.

 

[chathrapathi]

I guess they are using India like a unit of measurement. China is like a meter while India is like a centimeter. No offense.

Whatever makes you happy...
Even i say china is very rich, prosperous,huge, gigantic.

 

[cirr]

All the major state-owned conglomerates should inject unlisted assets into their listed bodies while the going is still good。

For example，less than 40% of CSSC has so far been securitized。

Ditto for the majority of the top 100 SASAC controlled behemoths。

Ditto for the majority of provincial SASAC controlled compaines。

Ditto for the majority of prefecture and county SASAC controlled companies。

 

[Shotgunner51]

Thank you for trashing the troll.

Let's see if he is gonna make a come back, using the population or CCP argument.

When the East Asia model is being referenced as a benchmark for China's economic development, most attentions are given to industrialization, hence a lot of Chinese focus are spent on Taiwan, SK & Japan, each being top-notched advanced industrial power in their specialized fields. Despite having the world's largest overall industrial base by now, China still need to catch up with East Asia on high value-adds (e.g. robotics, CNC machine tools, biotech).

When the East Asia model is again used as a benchmark on services, in which the very center being the finance sector, then the role model becomes Hong Kong. By now the market cap of HKSE ranks 3rd largest in the world, at a value more than 10 times of HK's GDP! Here in Shanghai (and in Shenzhen) daily interactions with counterparts in HK are very frequent, people are studying HK model in every possible aspects from legal environment (mostly about Common Law system in HK, vs Statutory Law system in PRC), market structure, fiscal policies to all professional practices. A closer tie between mainland China and HK will further facilitate the growth of stock markets.

 

[Shotgunner51]

China's stock market goes nuclear

China National Nuclear Power launches largest IPO in four years

China National Nuclear Power Co., Ltd (CNNP) started taking subscriptions from investors on Tuesday, aiming to raise 13.2 bln yuan (2.15 bln U.S. dollars).

It is believed to be the largest initial public offering (IPO) in four years in China's A share market.

Intending to issue 3.9 billion shares at 3.39 yuan a piece, the CNNP IPO could be the biggest since Power Construction Corp. in September 2011.

CNNP's IPO price was 22.29 times the company's 2014 earnings, lower than an average earnings ratio of 22.32 for the industry, according to CNNP statements posted on the Shanghai Stock Exchange website on Tuesday.

Altogether, 1.17 billion CNNP shares, 30 percent of the total, will be transacted online, while the rest will be traded offline, said the statements.

In the first three months this year, the company's operating revenue reached 6.36 billion yuan, up 45.1 percent compared with the same period last year.

CNNP warned investors of the risk of policy changes concerning nuclear power and preferential tax.

China will increase its nuclear power capacity to 58 million kilowatts by 2020, a rise of 170 percent over the current level, said Xu Yuming, deputy director of the China Nuclear Energy Association last month.

Xu estimates that this will require 100 billion yuan of investment every year given that there are only 23 nuclear power units operating in China, with a combined capacity of only 21.4 million kilowatts.

The State Council, China's Cabinet, issued a guideline in November, saying that they will make it easier for private investors to get involved in sectors like clean energy, solar and nuclear power.

CNNP is a subsidiary of China National Nuclear Corporation (CNNC), which invests, builds and operates nuclear power plants. Historically, CNNC successfully developed an atomic bomb, hydrogen bomb and nuclear submarines and built the first nuclear plant on the Chinese mainland.

Chinese Premier Li Keqiang promised earlier this year to promote clean energy, including nuclear power. Low efficiency of energy use has close links with the smog that troubles China's megacities.

Pilot nuclear power units using Hualong One technology, a domestic third generation reactor design were approved in April. The homegrown technology will help contribute to industrial upgrades and steady economic growth.

CNNP is the largest of 23 companies with IPOs this week, expected to lock up nearly 5 trillion yuan of liquidity. Under market rules, major shareholders of new stocks are subject to one or two years lock-up before they are permitted to trade.

The IPOs come during bull market in China's stocks. The Shanghai Composite Index has climbed 52 percent this year, the most among all global benchmark indexes.

Two batches of IPO applications instead of one each month mean the China Securities Regulatory Commission has approved 123 IPOs this year.

Chinese shares closed higher today, with the benchmark Shanghai Composite Index up 1.7 percent to finish at 4,910.53 points. The benchmark Shanghai Composite Index soared 4.71 percent on Monday after sharp rises and falls last week. On May 28, the index dived 6.5 percent to finish at 4,620.27 points, after closing at a fresh seven-year high the previous day.

The IPOs may be partly to blame for the drastic fall on May 28 as investors tried to get capital together. Subscribers to the new IPOs see them as a sure way of making money.

 

[Shotgunner51]

Looking at the market from a demand/supply perspective. Currently stock markets in China are seriously underdeveloped (for many reasons, both macroscopic and microscopic), a lot of good companies chose to list somewhere else say New-Lon-Kong or even Singapore, Tokyo, limiting the market cap size on the supply side. In addition, unlike other open markets where foreign firms can be listed, the enclosed nature of Chinese markets further limits the market cap.

On the contrast, the demand is huge. In developed markets, stocks, followed by insurance, these form majority of household net worth. In China that becomes real estate, followed by cash, such a portfolio lacks liquidity, protection and detached from economic growth. Though it's a cultural reason (as seen in other East Asian economies) that Chinese tend to save money, the savings ratio is still way too high (the most important reason dragging China's GDP). Back in 2013, Gross Domestic Savings already surpassed $4.79 trillions per annum (see chart below, World Bank Data), and by Dec 2014 RMB Savings Balance (人民币存款余额) reached RMB113.86 trillions (~$19 trillions). Diversion of some savings into consumption is a big uncertainty, hence a well developed finance market is necessary to absorb such enormous investments, and for the betterment of Chinese household net worth appropriation.

Market reform is urgently needed.

Gross domestic savings (current US$)
Gross domestic savings are calculated as GDP less final consumption expenditure (total consumption). Data are in current U.S. dollars. World Bank national accounts data, and OECD National Accounts data files.
Catalog Sources World Development Indicators

Gross domestic savings (current US$) | Data | Graph

 

[sword1947]

have you joined it ?

 

[AndrewJin]

Looking at the market from a demand/supply perspective. Currently stock markets in China are seriously underdeveloped (for many reasons, both macroscopic and microscopic), a lot of good companies chose to list somewhere else say New-Lon-Kong or even Singapore, Tokyo, limiting the market cap size on the supply side. In addition, unlike other open markets where foreign firms can be listed, the enclosed nature of Chinese markets further limits the market cap.

On the contrast, the demand is huge. In developed markets, stocks, followed by insurance, these form majority of household net worth. In China that becomes real estate, followed by cash, such a portfolio lacks liquidity, protection and detached from economic growth. Though it's a cultural reason (as seen in other East Asian economies) that Chinese tend to save money, the savings ratio is still way too high (the most important reason dragging China's GDP). Back in 2013, Gross Domestic Savings already surpassed $4.79 trillions per annum (see chart below, World Bank Data), and by Dec 2014 RMB Savings Balance (人民币存款余额) reached RMB113.86 trillions (~$19 trillions). Diversion of some savings into consumption is a big uncertainty, hence a well developed finance market is necessary to absorb such enormous investments, and for the betterment of Chinese household net worth appropriation.

Market reform is urgently needed.

Gross domestic savings (current US$)
Gross domestic savings are calculated as GDP less final consumption expenditure (total consumption). Data are in current U.S. dollars. World Bank national accounts data, and OECD National Accounts data files.
Catalog Sources World Development Indicators

Gross domestic savings (current US$) | Data | Graph

You are right....
My life is secured, but I always save...In Shanghai, I received 10,000 yuan per month from university, I only spent at most 2,500 yuan per month, dinner on campus is only 4-6yuan!

 

[Shotgunner51]

have you joined it ?

You're asking whether I am in the market or not? We are supposed to maintain some animosity here bro! Anyway, yes, have been in various markets for quite some time, domestic and overseas, I do that for a living.

You are right....
My life is secured, but I always save...In Shanghai, I received 10,000 yuan per month from university, I only spent at most 2,500 yuan per month, dinner on campus is only 4-6yuan!

Silent on that bro, you want IRS coming after you? LOL ... Good practice! All in cash? You may consider making your portfolio more aggressive at your age, let's go QQ group chat.