Emerging stock markets have attracted considerable academic interest over the last ten years. The growth of these emerging markets has been impressive as developing countries seek to mobilize both domestic and international funds to finance investment. In this respect the stock exchange has become a symbol of development. Yet many new markets have been characterized by high price volatility, variable trading conditions and occasional ’crashes’. Chinese markets are no exception to these trends. Drawing on a range of primary and secondary sources, including a collection of weekly share lists of the early market and later of the stock exchange from The North China Herald, Arthur Thomas examines the financial evolution of Shanghai and the contribution of the major western banking institutions which financed the early import and export trade. Opening chapters provide an account of the commercial activity of the area, the genesis of the share market, its organizational development and dealing methods, and the leading brokers and broking firms in Shanghai. The latter part of the book chronicles the behaviour of the market and the influences which produced periodic booms, crises and slumps, culminating in the final collapse of the market with the arrival of war in 1941. The late 1980s witnessed the re-emergence of the Chinese market with ’experiments’ in Shanghai and Shenzhen. These emerging experimental stock markets grew rapidly with considerable potential in their early years, but they have also been prey to high volatility and difficulty in building up a developed financial infrastructure. Western Capitalism in China explores the fluctuations in the fortunes of the Shanghai Stock Exchange and points to favourable future potential, with the possibility of a major market consolidation in the future. W. A. Thomas lectures in the Department of Economics and Accounting at the University of Liverpool.
Table of Contents
Contents: Introduction; Part One: The Shanghai Stock Exchange: Founding the rising emporium; The commercial framework; The supply of securities; Fixed interest stocks; The demand for securities; Share market and Stock Exchange; Market fluctuations 1860-1909; Shanghai's rubber boom; From revolution to 1929; The final years; Part Two: Chinese stock exchanges: Chinese stock markets 1911-1949; Emerging markets; Bibliography; Index.
'...Thomas provides glimpses of life in the International Concession and sketches of its foreign residents.' EH.NET '... a wealth of detail...' Business History '... a valuable contribution to the literature on China's long-term economic development... meticulously assembled and detailed account... an extremely useful source... Thomas has advanced our understanding of an important component of Western capitalism in China... It will no longer be possible to construct an account of China's economic development, or write a history of Western capitalism in China (...) without drawing on the material contained in this book.' Bulletin of SOAS '... a careful, quite detailed study...meticulously documented...' Financial History Review