Ever since the policy decision of Deng Xiaoping in 92 concerning the economic restructuring of China, the Chinese economy has become a prominent player in the global economy. The opening of the domestic market to foreign investors has created a tremendous rise in GDP (average annual growth of 9.5%). The People's Republic has made significant progress towards integration with the world economy over the past decade. China is characterised by its fixed exchange rates, keeping their currency undervalued involving a major annual increase in exports and thereby creating current account surpluses (export led growth). Due to their financial restructuring of the nineties the Chinese financial markets have become more integrated into the global financial market. These developments are anticipated to have crucial implications for the behaviour of the Chinese stock markets (Hang Seng). Meanwhile, the US remains the most prominent player in the global financial economy. Therefore it is......
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Approximate Word Count: 678
Approximate Pages: 3 (260 words per double-spaced page) |