There are still many differences between China stock market and European and American stock markets. There are mainly the following points:
1. The scale of western stock markets is much larger than that of China, and the financial industry is an extremely important industry and plays a decisive role in their country. After hundreds of years of development, the scale of western stock markets has been quite large, and it is difficult to promote the stock market to rise simply by relying on funds, which is also the reason for the great price differentiation of American stock markets. Some stocks are only a dime, and some can reach the price of several hundred dollars. China is small in scale, which can generate a bull market driven by capital. This is one of the reasons why the stock price in China is very high.
2. It is easier for enterprises in western countries to go public. Enterprises listed in China have strict restrictions on profitability, asset size and asset structure, while there are few restrictions in western countries. This is also the reason why many China enterprises go public on NASDAQ.
3. After hundreds of years of development, investors in western countries are quite mature, forming a situation in which institutional investors are the main body and a large number of retail investors participate. There are many retail investors in the American stock market. I forgot the specific data. There seem to be tens of millions. Believing in value investment and long-term investment are the market characteristics of western countries. But it doesn't mean that they are all value investments, and there are many speculators. The Internet bubble in 2000 was the result of their speculation. But their market scale is too large, and there are too many listed companies. It is difficult to promote the stock market by relying solely on speculation and capital. The reason why they like long-term investment is also forced.
4. There are many differences between China and the stock market in terms of supervision methods and market systems, and their laws and regulations are much more mature and strict than those of China. In this respect, I can only rely on my own online inquiry because there are too many contents.
The financial markets in western countries are quite mature, and the trading varieties are also quite rich. The stock market is not separated, it is closely connected with other markets such as futures market and money market, and the domestic market is connected with foreign markets. For example, stock index futures and options link the stock market with the futures market, and some financial derivatives link the stock market with the money market, and then link it with other countries through the money market. This is why this financial crisis, just a crisis in the credit market, can almost lead to the collapse of the financial system of the whole western countries. China's financial market did not collapse, because China's capital market, China and foreign markets are separated from each other.
6. Their investment theories are quite rich and mature. The investment methods that China people learn, such as Gann theory, wave theory, moving average theory and value investment, almost all come from western countries, and their investors are famous. China people must be modest in this respect, and we will learn from them for a long time to come.
Therefore, by studying the history of American stock market, we can see that the current level of stock market development in China is equivalent to that of the United States in the 1930s and 1940s. However, smart people should not feel inferior because China's stock market is backward. Don't forget, it is precisely because of backwardness that the China stock market has experienced such a sharp rise and fall, which provides a huge opportunity for smart people to earn excess profits. In the big bull market in 2007, many people can make their accounts more than 20 times profitable in just two years, which is almost impossible in mature markets. Buffett's annual profit of 25% is already quite attractive in the United States. We should feel lucky.
Of course, in the long run, China's stock market will develop into that of western countries one day. Maturity is inevitable.
The above is just a summary of my research and investment experience, which is very unsystematic and just my own opinion. Please correct me more.