Comparison and Analysis of Chinese and United States Stock Market

Yufan Yang

doi:10.4236/jfrm.2020.91003

Abstract

To compare and analyze the difference between the United States and Chinese stock market, the relative variance, correlation, beta, and volatility of different stock markets are required. These parameters could help people to make better decisions and risk predictions while investing in China or the United States. The analysis also shows cases and the unique characteristics of both the Chinese and United States stock market, leading to the conclusion that the United States stock market is more mature and stable than the Chinese stock market. Through the comparison between the two stock markets, the Chinese and American economies could be better understood.

Highlights

The analysis shows cases and the unique characteristics of both the Chinese and United States stock market, leading to the conclusion that the United States stock market is more mature and stable than the Chinese stock market
Every developed country in the world constructs its distinct system of stock trading to support its economy, and Stock data inform us about trading returns and risks, providing clues about the differences between the economies
In order to investigate the similarities and differences between the Chinese and the United States stock markets, this paper mainly presents a series of qualitative evaluations and quantitative calculations

Summary

Introduction

Every developed country in the world constructs its distinct system of stock trading to support its economy, and Stock data inform us about trading returns and risks, providing clues about the differences between the economies. In the past several decades, stock markets have played an important role in the economy. Through the issuance of stocks, a large amount of capital flows into the stock market and thence into the issuing enterprises, which promote the concentration of capital, improves the composition of enterprise capital, and greatly accelerates the development of commodity economy. Since the trading price of the stock market can objectively reflect the supply and demand of the stock market, reference for the issuance of the stocks in terms of price and quantity can be provided.

Methods

Results

Conclusion