section_path: Financial and banking system/Stock markets
section_name: Stock markets
paragraph_text: Stock markets
  
  As of 2024, China has the second largest equity markets and futures markets in the world, as well as the third largest bond market.: 153
  
  China's stock market exchanges include the Beijing Stock Exchange, the Shanghai Stock Exchange (including the STAR Market), the Shenzhen Stock Exchange, and the Hong Kong Stock Exchange. China's stock market is relatively underdeveloped in comparison to other aspects of its economy.: 148–150
  
  To be listed on China's stock exchange, companies must demonstrate good financial standing (including sustained profitability), solid corporate governance, including a board of independent directors, supervisory board, auditing, and no history of misreporting or fraud, and have a market capitalization equivalent to at least US$4 million.: 271–272
  
  The government regulates initial public offerings, encouraging them when the market is high in an effort to cool down prices and prohibiting them when the market is low.: 109
  
  When the stock markets re-opened in the PRC period in 1990, most of the listed companies were state-owned enterprises; this was part of an experiment in subjecting SOEs to market discipline.: 152–153 The Shanghai and Shenzhen stock exchanges were under municipal control and termed "experimental points" until 1997.: 102–103 In 1997, the central government brought the exchanges under central government control and affirmed that the exchanges had a legitimate role in the socialist market economy.: 102
  
  In 2015, a stock market plunge in China eliminated $2 trillion of global stock market value.: 147
  
  As of 2024, China has the second largest equity markets and futures markets in the world, as well as the third largest bond market.: 153
  
  China's stock market exchanges include the Beijing Stock Exchange, the Shanghai Stock Exchange (including the STAR Market), the Shenzhen Stock Exchange, and the Hong Kong Stock Exchange. China's stock market is relatively underdeveloped in comparison to other aspects of its economy.: 148–150
  
  To be listed on China's stock exchange, companies must demonstrate good financial standing (including sustained profitability), solid corporate governance, including a board of independent directors, supervisory board, auditing, and no history of misreporting or fraud, and have a market capitalization equivalent to at least US$4 million.: 271–272
  
  The government regulates initial public offerings, encouraging them when the market is high in an effort to cool down prices and prohibiting them when the market is low.: 109
  
  When the stock markets re-opened in the PRC period in 1990, most of the listed companies were state-owned enterprises; this was part of an experiment in subjecting SOEs to market discipline.: 152–153 The Shanghai and Shenzhen stock exchanges were under municipal control and termed "experimental points" until 1997.: 102–103 In 1997, the central government brought the exchanges under central government control and affirmed that the exchanges had a legitimate role in the socialist market economy.: 102
  
  In 2015, a stock market plunge in China eliminated $2 trillion of global stock market value.: 147
  
  As of 2024, China has the second largest equity markets and futures markets in the world, as well as the third largest bond market.: 153
  
  China's stock market exchanges include the Beijing Stock Exchange, the Shanghai Stock Exchange (including the STAR Market), the Shenzhen Stock Exchange, and the Hong Kong Stock Exchange. China's stock market is relatively underdeveloped in comparison to other aspects of its economy.: 148–150
  
  To be listed on China's stock exchange, companies must demonstrate good financial standing (including sustained profitability), solid corporate governance, including a board of independent directors, supervisory board, auditing, and no history of misreporting or fraud, and have a market capitalization equivalent to at least US$4 million.: 271–272
  
  The government regulates initial public offerings, encouraging them when the market is high in an effort to cool down prices and prohibiting them when the market is low.: 109
  
  When the stock markets re-opened in the PRC period in 1990, most of the listed companies were state-owned enterprises; this was part of an experiment in subjecting SOEs to market discipline.: 152–153 The Shanghai and Shenzhen stock exchanges were under municipal control and termed "experimental points" until 1997.: 102–103 In 1997, the central government brought the exchanges under central government control and affirmed that the exchanges had a legitimate role in the socialist market economy.: 102
  
  In 2015, a stock market plunge in China eliminated $2 trillion of global stock market value.: 147