China’s capital markets suffered through a bad year. The second biggest capital market in the world in terms of capitalization fell by USD 2.3 trillion due to the “Trade war”.

This has been the biggest loss in value since 2002. Moreover, the main capital market index the “Shanghai Composite” index fell by 25 percent last year.

Thus the exchange was named the worst performing exchange. 10 years ago during the world financial crisis the Shanghai stock exchange fell by 65 percent. Also investor activity decreased significantly. Shanghai and Shenzhen stock exchange daily trade value fell to CNY 369 billion or USD 54 billion, reaching a new low since 2014.  

As of Thursday, a total of CNY 263.8 billion trade was made which equals about 10 percent of the highest trade value recorded in 2015.

Moreover, newly listed companies on China’s capital markets had an average of 193 percent increase in value in the first month after IPO. Although this is not a bad indicator, it’s a 5 year low and equals only about 50 percent of the indicator in the last 2 years as noted by analysts.

Source: BloombergTv.mn