Although the Chinese stock market’s history dates back to the late nineteenth century, it did not really get off the ground until one century later.
The Shanghai Sharebrokers’ Association was already established in 1891, followed by an exchange in Hong Kong in 1904. Thwarted by world wars and a Communist Revolution, however, the stock market did not play a significant role on the world stage until 1990, when the Shanghai Stock Exchange reopened, followed by another exchange in Shenzhen and the implementation of the Hong Kong Stock Exchange into the Chinese system in 1997.
Since then, the Chinese stock market has undergone a deep transformation from a small market with minimal capitalization and liquidity, to the world’s second largest and one of the most liquid markets.
The graph shows the development of the Chinese stock market over the past twenty years.