Stock Market of China, Taiwan, Hong Kong and the US in One Chart

30 July 2022

This article is making an attempt to find how the various stock markets in China,  Taiwan,  Hong Kong, and the US interacted with each other after Mr. Xi JinPing became the President of the People's Republic of China (PRC) in March 2013.  

For clarity,  this article compares the main indexes of the 4 markets all in one single chart.

What Chart?

This chart was drawn using the performance chart inside stockchart.com. 

The chart started by saying Mr,  Xi Jin Ping took office in March 2013.  He succeeded Mr. Hu JinTao,  becoming the 7th President of PRC.

The Achievement of Mr. Xi JinPing

Xi is well known for his anti-corruption practice and the one Belt One Road(OBOR) initiative. Economically, the PRC people see him as a successful President who is behind China's export-driven growth.  Xi's achievement must be the reason behind the super growth of the Chinese stock market in mid-2014.

The Chinese Stock Market Bubble in 2015/16

During Xi's term in 2014, the Chinese Yuan or RMB became one of the world's top five payment currencies, overtaking the Canadian dollar and the Australian dollar.  

The Chinese traders/investors could have seen it as an opportunity to make some quick money.  They were reported to often use borrowed money to buy stock.  This unfortunately caused China's stock market bubble to burst on 12 June 2015.  

The Chinese stock market bubble eventually ended around February 2016.  The Chinese markets have not quite recovered since.

The Hong Kong Stock Market

While the Chinese markets were flourishing to form the bubble,   the Hong Kong market remained quite steady, trailing behind the rest of the stock market until the Hong Kong Street Protest broke out in March 2019.  

The Hong Kong market dropped about 35% during the Hong Kong Street Protest but gained back about 25% after the introduction of the Basic Security Law on 30 June 2020.  But this gain was quickly erased when the Hong Kong Exodus started after the UK government introduced a new visa scheme for holders of the British National (Overseas) passport.

The Taiwan Stock Market

As shown in the chart,   the Taiwan stock market had a better time compared to Shanghai and Hong Kong markets.  It appears to trace closely behind the US market after 2020.