China Market Glossary: Key terms one should know about Chinese economy, latest market selloff
Global investors have raised concerns about China's economy as a confluence of recent events has darkened its economic outlook. To understand the China market sell-off in a better way, here is a glossary of terms one should know around Chinese markets: Beijing Stock Exchange: The stock exchange was established in September 2021 in Beijing, China. It is one of the three main stock exchanges operating in mainland China.
PBOC: The People’s Bank of China(PBOC) is China’s central bank and is in charge of China’s monetary policy. OEM: Original equipment manufacturer (OEM) refers to a company that manufactures a product following its client’s design and request, which ultimately will be branded by its client. A-Share: A-share refers to the stock shares of Chinese companies, that are denominated in Renminbi(RMB) and traded on the stock exchanges in mainland China.
Red chip: Red Chip refers to the stocks of mainland China-based companies incorporated outside mainland China and listed on the Hong Kong Stock Exchange. Usually, the majority shares of the companies are controlled directly or indirectly by a government body in mainland China. Foreign-invested enterprises (FIEs): Foreign-invested enterprises are business entities registered in mainland China wholly or partially owned by foreign shareholders.
Shanghai Stock Exchange (SSE): Shanghai Stock Exchange, or SSE, is a stock exchange based in Shanghai, China, and is one of the three major stock exchanges operating in mainland China. Negative List: The Negative List refers to the negative list for Foreign Direct Investment (FDI) in China, which is a special administrative measure for access to foreign investments. It is issued and updated by National Development and Reform
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