The history of China's stock market is relatively short. The Shanghai and Shenzhen Stock Exchanges were established in 1990 and 1991 respectively. Since then, with the development of laws, regulations and financial services, the Chinese stock market has shown a rapid development. As of the end of 2018, more than 3,500 companies were listed on the Shanghai and Shenzhen stock exchanges. In 2017, Morgan Stanley Capital International added China A-shares to its emerging market index. Along with the Hong Kong Stock Exchange, the Chinese Stock Exchanges in Shanghai and Shenzhen belong to the most important stock exchanges worldwide.
The rapid expansion of China's IPO market has also contributed to the growth of the global stock market. In 2019, Alibaba Group Holdings' Hong Kong IPO raised around 11.2 billion U.S. dollars, becoming the world’s second largest IPO of that year. Due to the large scale of these IPOs, their performance will have an important impact on the trend of the stock market in China and overseas. At the same time, the listing of these companies can also help people understand the development of China's economy more comprehensively.
Due to different listing standards between different regions, many Chinese companies chose to go public overseas. As the world's top IPO fund raising exchange in 2018 and 2019, the Hong Kong Stock Exchange (HKEX) was chosen by many Chinese companies from the Mainland as their listing location. In 2019, several of the largest IPOs at HKEX were Chinese companies with their headquarters in the Mainland. Developed legal services and simplified listing rules in Hong Kong have also provide many small and medium-sized enterprises an access point to the stock market effectively.