Analysis on the US and Chinese Stock Company

Abstract

This paper provides an analysis towards why Chinese stock market is different from US. It first provides an in-depth analysis in Chinese history of opening the financial market with four stages. Then, it examines the history of capital asset pricing models, and its effect on stock market. Then, author takes into account a case study that CGO, a novel strategy, works in US stock market and fails in Chinese stock market. The reason is that market structure is different and there is price limit policy imposed by the government.