1, stock issuance and withdrawal mechanisms are different.
In terms of stock issuance mechanism, China's stock IPO implements the approval system, and the CSRC controls the stock supply, while foreign IPOs implement the registration system, which has a high degree of marketization; With regard to the stock delisting mechanism, the China stock market does not implement the mandatory delisting system for listed companies that fail to meet the listing requirements due to continuous losses. Many stocks facing delisting have changed their faces through backdoor listing, and continue to be listed and traded. However, foreign mature securities markets have imposed mandatory delisting on companies with continuous losses that do not meet the listing conditions.
2. The investor structure is different.
The market value of funds held in China accounts for less than 10% of the total stock market value, while institutional investors such as insurance companies, securities companies and fund companies account for less than 30% of the total market value, while institutional investors in foreign mature markets account for more than 50% of the total market value. As a result of this difference, institutional investors in China do not have enough voice in the stock market, while foreign institutional investors are absolutely dominant in the stock market.
Due to the lack of institutional investors' right to speak, the domestic stock market has obvious characteristics of "retail market": one of the typical characteristics is that the domestic stock market is active and the turnover rate is high. Most stocks have a large turnover and are active, while many foreign stocks are deserted and the trading volume is not large for several days.
Another typical feature is that retail investors have a great right to speak, and their preference for stocks affects the stock price. For example, domestic retail investors prefer small-cap stocks, which leads to obvious difference in P/E ratio between large-cap stocks and small-cap stocks in domestic stock market. Most small-cap stocks are more than 30 times, while the P/E ratio of large-cap stocks such as PetroChina, real estate and banks is only 10, while most small-cap stocks in foreign mature markets are very low, and many P/E ratios are only single digits, while the P/E ratio of large-cap stocks is quite even higher.
: internationalization of the securities market
The internationalization of the securities market is the internationalization of the securities industry, that is, allowing foreign securities market intermediaries to participate in domestic securities business. Specifically, overseas service providers enter the domestic securities market to provide intermediary services for residents and non-residents to invest in the domestic securities market in local and foreign currencies, and at the same time allow overseas investors to buy and sell domestic securities freely, and allow overseas fund-raisers to use the domestic securities market to raise funds. The internationalization of securities market involves not only the service trade of WTO, but also the cross-border flow of capital.