Abstract

This paper provides a detailed analysis of the difference between the Chinese stock market and the U.S. stock market under the development of financial technology. In conclusion, we find that the Chinese stock market is more dominated by retail investors, but the United States owns more stocks, mostly held by institutional investors, and has a better financial mindset. The behavior of investors in the Chinese stock market is mainly the excessive speculation of investors in the Chinese market. This is one of the reasons for the many fluctuations in the Chinese stock market. Due to the speculative nature of China’s stock market, the floating ratio reflects the management mechanism of China’s stock market and helps to observe the correlation with the U.S. stock market. And technology and digitalization affect the trading of the stock market. This research is correlational, and there is no causality implied.

Highlights

  • According to the US Securities and Exchange Commission, as current technology has affected the development of the stock market, investors can obtain information about the company and its stocks

  • Since COVID-19 first appeared in Wuhan, China, by the end of 2019, the Chinese stock market experienced a decline, causing serious economic losses to China, but the stock markets in Shanghai and Shenzhen have been relatively resilient

  • The first is the daily limit set by China, which controls the upper and lower limits of daily trading fluctuations, which makes a large impact, which takes several days to release, and the degree of freedom of trading is limited to a certain extent

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Summary

Introduction

According to the US Securities and Exchange Commission, as current technology has affected the development of the stock market, investors can obtain information about the company and its stocks. The Internet provides current stock prices and news of companies issuing shares. These latest developments can be communicated to customers, and companies can track the performance of their stocks. This article is to study the differences between the Chinese and American stock markets under the Internet. China's stock market operates differently from the U.S market. This paper will focus on both the Chinese and U.S stock markets, together with the differences between them. The performance of the Chinese stock market has become increasingly important both to domestic and foreign investors.

A tale of economies
Cultural Background
Covid-19 on the stock markets
Findings
Summary
Full Text
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