
2
The Efficiency o f China s Stock Market
float market capitalization to Gross Domestic Product (GDP) was less than 37.43
percent, much smaller than the ratios for the U.S., Japan, Germany, Taiwan and
Thailand.3 China’s comparatively small stock market promises potentially huge
expansion as China continually implements economic reform. In particular,
China’s Stock Market will soon be fully opened to the world, which is a
commitment when China joined the World Trade Organization (WTO) in 2002.
Currently, China’s economy is a hybrid with both government intervention and
market adjustment, due to the persi