China Stock Market

stock trading: From May of 2014 up to the latest trading day on April 30, the Shanghai and Shenzhen shares surged 119 percent and 103 percent respectively, according to Xinhua China. In just a year,the average price-to-earning ratios in the two bourses have jumped to 22.6 and 49.7 from 10.6 and 24. China stock market has soared over the past year, even as the world second largest economy has been witnessing a slowdown in growth. The aggregate market capitalization of the two markets climbed by 138 percent to the current 56 trillion yuan . The world-beating performance of China stock market is no surprise and this round of bull run started when the central government, on May 9 of 2014, unveiled a blueprint for capital market reform aimed at boosting regulatory transparency and widening market access. About six months later, the stock market got a fresh boost when a stock trading link was launched to allow investors in Shanghai and Hong Kong to trade on both bourses. In a wide-ranging statement of policy principles, the State Council said it would develop a system for direct bond issue by local governments, streamline the approval process for initial public offerings , and remove some restrictions on financial derivatives. (news.financializer.com). As reported in the news.