Working Paper: NBER ID: w24346
Authors: Grace Xing Hu; Jun Pan; Jiang Wang
Abstract: The Chinese capital market, despite its relative short history in its modern form, has experienced a tremendous growth and is now the second largest in the world. Due to China's tight capital controls, the development of its capital market has mostly been isolated from and hence not been well understood by the rest of the world. Yet, this state of isolation is bound to change substantially as China becomes more integrated into the global financial system. In this paper, we provide an empirical overview of the Chinese capital market: its historical development and main empirical characteristics.
Keywords: Chinese capital market; empirical overview; market growth; economic reform
JEL Codes: G00; G1; G11; G12; G15
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| China’s transition to a more market-oriented economy post-1976 (P22) | rapid growth of the Chinese capital market (O16) |
| changes in China's capital market (G18) | impact on global markets (F69) |
| regulatory frameworks (G38) | market integration and growth of the Chinese capital market (O16) |