A Fundamental and Technical Analysis of the US and Chinese Stock Markets
- 1 School of Slavonic and East European Studies, University College London, London, WC1E 6BT, United Kingdom
* Author to whom correspondence should be addressed.
Abstract
This paper provides a comprehensive comparison between the stock markets of the United States and China, the two largest economies globally. The study examines key aspects such as market mechanisms, investor strategies, and market efficiencies. The U.S. stock market, characterized by its large market capitalization and robust growth, operates through dealer and auction market mechanisms with a strong regulatory framework and high openness to foreign investors. In contrast, the Chinese stock market, having developed more recently, primarily uses auction market mechanisms and imposes daily price limits to manage volatility. Historical developments show the U.S. market's long history of financial development and crisis management, while China's market has seen rapid development since economic reforms began in 1978. The analysis of market efficiency through fundamental and technical analysis reveals that the U.S. market more effectively reflects company performance in stock prices compared to the Chinese market, which still shows areas for potential improvement. This comparison highlights the distinct characteristics and developmental paths of the U.S. and Chinese stock markets, providing valuable insights for investors and policymakers in understanding the differences and guiding future market development and investment strategies.
Keywords
Stock Market Comparison, Market Efficiency, Investment Strategies, Financial Disclosure, Regulatory Institutions
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Cite this article
Lin,J. (2024). A Fundamental and Technical Analysis of the US and Chinese Stock Markets. Advances in Economics, Management and Political Sciences,98,137-142.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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Volume title: Proceedings of ICFTBA 2024 Workshop: Finance in the Age of Environmental Risks and Sustainability
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