Lagging Growth: Chinese Stock Market Trading Volume

Despite the regulators’ effort in boosting investor’s confidence in post-hiatus IPOs, growth in Chinese stock market growth in trading volume is still sluggish.

While January IPOs brought a tangible uptick, Chinese stock market trading volume dropped significantly after the issuance tide. During the January, February and June A-share IPOs Chinese companies have raised a total of RMB24.07 billion, while the amount for companies going public in Hong Kong was RMB21.31 billion in 1H2014.

Futures markets show a sluggish growth as well: futures trading at China Financial Futures Exchange and Shanghai Futures Exchange is down 3.8% and 3.2% since June 2013, respectively. However, some markets are growing in terms of activity: commodities futures exchanges in Dalian and Zhengzhou have seen a slight increase in trading volume since June last year.