The Chinese capital market has experienced dramatic development over the past twenty years. We can read the stories in the candlestick charts of every rise and fall. By recalling past market performance, we are able to understand the theme that ran through the history of the A-shares.
A turn of peaks and dipsAccording to the large cycles that comprise both the bull and bear markets that the A-share market has experienced over the past twenty years, we can divide the history of Chinese A-share market into three stages.
The first stage was from 1990 to 1999, during which time the A-shares experienced the swapping of bull and bear markets four times. The Shanghai Composite Index started at 100 points, making 1,000 points its average value and 1,500 points its peak over those ten years. The Chinese A-share market had just gotten started during this period, and the swapping of bull and bear markets usually happened very quickly, resulting in rapid surges and sudden slumps.
The...
