China Hot Stocks& Rdquo

Finance.

Getting inside the stock markets of china - introduction. &ldquo. Is a popular topic among stock investors in the recent years. China Hot Stocks& rdquo.

There are many areas of differences, as compared to American and European stock markets, need to be understood by prospective investors if they want to participate in China& rsquo. - color codes of price movement. S strong bull run from 2005 after the bear was beaten off. Color codes for price movements are the direct opposite of the western stock markets. S closing price, the instant price will be labeled in red color. When price movement is positive as compared to the previous day& rsquo. Reversely, if the price moves down as compared to the previous day& rsquo.

Shanghai Stock Exchange. - s closing, the instant price at the specific moment will be in green color. There are 2 boards - A and B shares. Shanghai A stocks are traded in Reminbi while Shanghai B are traded in U. Dollars. Due to China currency control policy, local Chinese are limited in holding and trading the U. Dollar priced Shanghai B shares.

As of January 2008, there are 840 A - share companies listed and 54 B - share counters. - so the locals mainly traded in the a market while foreigners could only trade in the b market. You can see that B market is relatively small in size as compared to A market. Shenzhen Stock Exchange. There are companies which are listed both in the A and B markets. There are 2 boards - A and B shares.

The locals mainly trade in the A market due to foreign currency control while as foreign entities are restricted to the Hong Kong Dollar priced B shares. - shenzhen a shares are transacted in reminbi and shenzhen b are transacted in hong kong dollars. As of January 2008, there are 670 stocks listed on Shenzhen A market and only 55 on the B market. Hong Kong Stock Exchange& ndash. B market size is less than 10% of A market. H shares( China companies or China related companies listed in Hong Kong) and Hong Kong companies& rsquo. Hong Kong& rsquo.

Stocks are all traded in Hong Kong Dollars. - s international exposure to western funding, more established financial and legal systems attracted many china companies& rsquo. One key private stock listed on HKSE, is Alibaba, in late 2007. com, an online trading platform for wholesalers by a western - educated Jack Ma. IPO on Hong Kong Stock Exchange, including many China government linked corporations such as PetroChina, and China Mobile, Bank of China, China Shenhua. Taiwan Stock Exchange& rsquo. The main negative factor is a political issue on China& rsquo. S index has been gloomy for almost 10 years.

S conflict with Taiwan government and its resultance of one - way drainage of investment flow from Taiwan into China. - i would not advise any move into the taiwan stocks until the election result on march 22nd. With the upcoming Taiwan Presidential election in March 2008, a new Nationalist Government could decode the current economic mess on the island and revive the Taiwan stock market confidence. What Foreigners Could Buy? The Authority is slowly opening up channels through which foreigners could invest indirectly in the A stocks listed in Shanghai and Shenzhen exchanges. Only Shanghai and Shenzhen B shares, Hong Kong and Taiwan markets are open to foreigners. Price Differentials.

Real estate developer giant Wangke& rsquo. - prices differentials between a and b shares of the same stock are significant. S A shares, on January 28th 2008, were traded at about 60% higher than its B shares on the Shenzhen Stock Exchange. Some Chinese companies are both listed on the China A market and Hong Kong Stock Exchange. This means the relative significant investment value on B stock if investors are bullish on this company. Prices Differentials between A and H shares of the same stock e. g, Jiangxi Copper& rsquo. Buying and Selling.

S H shares with a dynamic PE of below 10( Stock code 358) are only 30% of A shares( Stock code 600362) on the closing day of January 25, 200This illustrates the investment value of the H shares and the unbelievable huge gaps between A and H shares. - buying of shares in the a and b markets in shanghai and shenzhen markets can only be sold on the next trading day. Shorting& rdquo. And there is no& ldquo. Allowance for the play. Price Movement Limits. This is very different as compared to Hong Kong market and many western exchanges, where selling of shares could happen the next minute after you buy or shorting the stock.

Price Movements of Chinese stocks on A and B markets are limited to either 5% or 10% per trading day. - these limits do not apply to the 1st trading day upon its ipo. Stock closed at$ 10 the previous day is only allowed to move between the lowest$ 9 to highest$ 11 limits. And the above Stock Exchange rule also does not apply in the Hong Kong market. The locals are hopeful of a 10 - year bull run from 200The underlying forces behind the sustaining strength would be the aggressive GDP growth of 10% average of the last 10 years, the global pressures for Chinese currency Reminbi appreciation, the new tax policy which came into effect from January 1st 2008, the successful restructuring of many large - size state - own enterprises, government& rsquo. China Stock Market Trend. S push for higher - end manufacturing to improve export values further and the major international sports and business events to be hosted by China in the nest few years such as Beijing Olympics 2008 and Shanghai World Expo 201