1 / 20

Tale of two cities ---- Comparison of Capital Markets System In London and Shanghai

This article compares the capital market systems in London and Shanghai, examining their structure, trading volumes, financing volumes, market caps, and exchanges. It also discusses the development of Shanghai's multi-level capital market and the challenges it faces.

joelmoore
Download Presentation

Tale of two cities ---- Comparison of Capital Markets System In London and Shanghai

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Tale of two cities----Comparison of Capital Markets System In London and Shanghai Joyce Wang 05-06-2009

  2. outline • International capital market system • London’s capital market system • Shanghai’s capital market sysetm • Comparison of two cities’ capital market • Develeping Shanghai’s multi-level capital market

  3. International capital market system

  4. International capital market • Capital market refers to the securities financing and business for more than one year loan term capital stock markets, including stock market, bond market, fund market and long-term credit market , etc.

  5. International capital market system In today’s mature capital market main system pattern---multi-level: Mainboard Second board(do pioneering work board) Third board Over-the-counter bulletin board

  6. London’s capital market system

  7. London’s Capital Market system • Stock trading volume No. 3 in the world • IPO financing volume No. 2 in the world • Market cap. No. 5 in the world • 30% of global foreign exchange trading • 70% of global bond trading • 20% of global inter-bank trading

  8. London’s Exchanges • mainboard----London Stock Exchange(LSE) • second board----Alternative investment market(AIM) • third board----Techmark • over-the-counter bulletin board---- Off exchange(OFEX) • Other exchanges----London Future And Options Exchange, London Carbon Trading Exchange, London Metal Exchange , Baltic Exchange ,etc

  9. Features of London’s Capital Market • multi-level,Diversified,complete structure • Satisfy companies financing needs at different levels and different times • Optimal allocation of various resources • Regulation complicated

  10. Shanghai’s Capital Market system

  11. Shanghai’s Capital Market • Stock trading volume No. 7 in the world • IPO financing volume No. 3 in the world • Market cap. No. 6 in the world • Copper trading of Shanghai Futures Exchange No. 2 in the world

  12. Shanghai’s Exchanges • mainboard----Shanghai Stock Exchange • Other exchanges---- Shanghai United Assets And Equity Exchange Shanghai Futures Exchange Shanghai Environment And Energy Exchange Shanghai Gold Exchange Shanghai Shipping Exchange Shanghai Oil Exchange etc.

  13. Features of Shanghai’s Capital Market • Single level, leaning towards large company • Government dominating, strict regulation • Lots of medium and small businesses, especially science and technology, can’t get equity financing service through the single level capital market.

  14. Comparison of two cities’ capital market

  15. Comparison of two cities’ capital market • mature vs. primitive • Multi-level meet all kinds of demands vs. single level meet limited demands • Highly innovative vs. relatively simple • Too much virtue elements vs. too much base on real economy

  16. Developing Shanghai’s multi-level capital market

  17. Developing Shanghai’s multi-level capital market • A good news---Do poineering work board (known as “second board”) is formally open in recent days , it is a symbol of multi-level capital market construction. • Developing Assets Market ---a good supplement, served as third board.It is completing the multi-level and diversifying system.

  18. Shanghai assets market is a primary equity market Developing Shanghai’s multi-level capital market Semi-standard securitization Non-standard

  19. The end It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us.

  20. Thank you

More Related