Beijing Seeks More Control Over How Its Residents Invest Their Money, Expert Says

New Analysis
U.S. stocks have made 10 times more gains in the past decade than China’s domestic stocks. In preventing further capital outflow, Beijing banned new investors in mainland China from speculating in foreign exchange markets. Experts suggest the regime seeks more control over how its residents invest their money.
According to the monthly market operation report the Chinese central bank released on Feb. 23, the Shanghai Composite Index closed at 3,255.7 points at the end of January, a 5.4 percent increase month-on-month, while the Shenzhen Component Index closed at 12,001.3 points, an 8.9 percent increase month-on-month.
The Shanghai Composite Index (SSE Index) is a stock market index of all stocks traded at the Shanghai Stock Exchange (SSE). It has been released in real time since July 15, 1991, and is one of the most influential indices in China’s capital markets. Meanwhile, the Shenzhen Component Index (SZSE Index) is an index of 500 stocks traded at the Shenzhen Stock Exchange (SZSE), also a strong point of reference for the Chinese financial markets….

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