As the British place has structural strengths

The City is inclined to the gleaming economic capital of China. For the third consecutive month, the market capitalization of companies listed in Shanghai all weighs more heavily than London. Figures issued by the World Federation of Exchanges (WFE) are without appeal. At the end of April, the Shanghai Stock Exchange (SSE) has posted a total market capitalization of about 1.949 billion, against the 1.946 billion announced by the London Stock Exchange (LSE). The gap is thin, but it was still $ 187 billion in March. The same month, the SSE even offered fourth place in the world classification of stock operators, before the European branch of Nyse Euronext. "There is a true movement to Asian markets, notes Axel Pierron, senior vice-president at Celent and capital markets specialist." Seen from an economic point of view; seen today of a stock view.

No foreign company

The advance of Shanghai is based in particular on the activity that the place has in recent months. The value of the volumes traded on SSE proves it. As early as February, they totalled $ 384 million, or stack three times the volume recorded by Euronext and approximately 80 more than those won by the LSE on the period. Shanghai is still far to London in April, with a total value of securities traded almost one third greater than $ 440 million. The same month, the activity of the Chinese place has exceeded the Tokyo Stock Exchange (TSE), considered one of the three major global financial centres with London and New York.

"The emergence of Shanghai is worn by the resumption of activity on the front of the raw materials, in a country which is one of the main consumers, said Axel Pierron." Chinese scholarship course record strong growth in volumes, but their products are generally fairly simple, because of a restrictive regulatory. The variety of financial instruments is much smaller than that of the American places and European. "This is not all.

Find other opportunities

The Shanghai Stock Exchange has yet to make much progress before as world reference. Many observers have lamented the lack of transparency in the Chinese financial market. Worse, the information that emanate is not a reliability. What instilled fear among the foreigners who wish to build on the platforms of the SES. Shanghai rating the illustrates better than any other the lack of opening: there are no foreign company.

Finally, the SSE still receives the poor situation of Western markets. Although that noticed the decline in London could remain temporary. As the British place has structural strengths. "The City has a huge geographical advantage, explains Axel Pierron." It is the only place to have common opening hours with all the other major global exchanges. "Most of the battle between the seats could still be played elsewhere. The collapse of the course grows market companies to find other opportunities, at the forefront of which are derivatives, and, more importantly, the derived from credit. These complex financial instruments, accused of being at the origin of the crisis, are covered by the world's authorities who want stricter supervision of their trade. One by one, the stock market operators are trying to position themselves in this market. In this field as the issues of transparency, the Shanghai page remains blank.