Difference between revisions of "Group12 Proporsal"
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A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange as well as those only traded privately. Examples of the latter include shares of private companies which are sold to investors through equity crowdfunding platforms. Stock exchanges list shares of common equity as well as other security types, e.g. corporate bonds and convertible bonds. | A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange as well as those only traded privately. Examples of the latter include shares of private companies which are sold to investors through equity crowdfunding platforms. Stock exchanges list shares of common equity as well as other security types, e.g. corporate bonds and convertible bonds. | ||
| − | + | === China Stock Market Overview === | |
| − | Chinese Stock Exchanges may refer to the two main stock exchanges in mainland China: | + | Chinese Stock Exchanges may refer to the two main stock exchanges in mainland China: Shanghai Stock Exchange & Shenzhen Stock Exchange |
| − | + | ==== Shanghai Stock Exchange ==== | |
The Shanghai Stock Exchange (SSE; Chinese: 上海证券交易所; pinyin: Shànghǎi zhèngquàn jiāoyì suǒ), is a stock exchange that is based in the city of Shanghai, China. It is one of the two stock exchanges operating independently in the People's Republic of China, the other being the Shenzhen Stock Exchange. Shanghai Stock Exchange is the world's 5th largest stock market by market capitalization at US$3.5 trillion as of February 2016, and 2nd largest in East Asia and Asia.[2] Unlike the Hong Kong Stock Exchange, the Shanghai Stock Exchange is still not entirely open to foreign investors[3] due to tight capital account controls exercised by the Chinese mainland authorities[4] and often manipulated by the decisions of the Central Government.[5] | The Shanghai Stock Exchange (SSE; Chinese: 上海证券交易所; pinyin: Shànghǎi zhèngquàn jiāoyì suǒ), is a stock exchange that is based in the city of Shanghai, China. It is one of the two stock exchanges operating independently in the People's Republic of China, the other being the Shenzhen Stock Exchange. Shanghai Stock Exchange is the world's 5th largest stock market by market capitalization at US$3.5 trillion as of February 2016, and 2nd largest in East Asia and Asia.[2] Unlike the Hong Kong Stock Exchange, the Shanghai Stock Exchange is still not entirely open to foreign investors[3] due to tight capital account controls exercised by the Chinese mainland authorities[4] and often manipulated by the decisions of the Central Government.[5] | ||
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| − | + | ==== Shenzhen Stock Exchange ==== | |
The Shenzhen Stock Exchange (SZSE; Chinese: 深圳证券交易所) is one of China's three stock exchanges, alongside the Shanghai Stock Exchange and Hong Kong Stock Exchange. It is based in the Futian district of Shenzhen, Guangdong.[3] With a market capitalization of its listed companies around US$2.285 trillion in 2015, it is the 8th largest stock exchange in the world, and 4th largest in East Asia and Asia. | The Shenzhen Stock Exchange (SZSE; Chinese: 深圳证券交易所) is one of China's three stock exchanges, alongside the Shanghai Stock Exchange and Hong Kong Stock Exchange. It is based in the Futian district of Shenzhen, Guangdong.[3] With a market capitalization of its listed companies around US$2.285 trillion in 2015, it is the 8th largest stock exchange in the world, and 4th largest in East Asia and Asia. | ||
| − | + | === Korea Stock Market Overview === | |
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== Objectives == | == Objectives == | ||
| + | Cross shareholding is a situation in which a corporation owns stock in another company. So, technically, corporations own securities issued by other corporations. Cross shareholding can lead to double counting, whereby the equity of each company is counted twice when determining value. When double counting occurs, the security's value is counted twice, which can result in estimating the wrong value of the two companies. | ||
| + | Cross shareholding is very common in corporate world. Sometimes, there can be more than 10 companies involved and it is very difficult for investors and regulators to track who owns how much. | ||
| + | In this project, our group choose 1 or 2 big groups of companies from Korea and China with heavy cross shareholding between each other and conduct visualization and relationship analysis on their networks using R-Shiny so that people can have better picture of these companies’ network and easier to understand relationship between companies. | ||
| − | == Data Source == | + | <big>Big text</big>== Data Source == |
== Analysis Methods == | == Analysis Methods == | ||
Revision as of 14:32, 28 November 2017
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Background
Stock Market Briefing
A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange as well as those only traded privately. Examples of the latter include shares of private companies which are sold to investors through equity crowdfunding platforms. Stock exchanges list shares of common equity as well as other security types, e.g. corporate bonds and convertible bonds.
China Stock Market Overview
Chinese Stock Exchanges may refer to the two main stock exchanges in mainland China: Shanghai Stock Exchange & Shenzhen Stock Exchange
Shanghai Stock Exchange
The Shanghai Stock Exchange (SSE; Chinese: 上海证券交易所; pinyin: Shànghǎi zhèngquàn jiāoyì suǒ), is a stock exchange that is based in the city of Shanghai, China. It is one of the two stock exchanges operating independently in the People's Republic of China, the other being the Shenzhen Stock Exchange. Shanghai Stock Exchange is the world's 5th largest stock market by market capitalization at US$3.5 trillion as of February 2016, and 2nd largest in East Asia and Asia.[2] Unlike the Hong Kong Stock Exchange, the Shanghai Stock Exchange is still not entirely open to foreign investors[3] due to tight capital account controls exercised by the Chinese mainland authorities[4] and often manipulated by the decisions of the Central Government.[5]
The current exchange was re-established on November 26, 1990 after a 41-year hiatus and was in operation on December 19 of the same year. It is a non-profit organization directly administered by the China Securities Regulatory Commission (CSRC).
The Shanghai Clearing House provides security for financial market participants, and efficient clearing services development purposes, but also conductive to international peers inter-agency communication and cooperation. It provides central counterparty clearing of foreign currency in the interbank market, including clearing, settlement, margin management, collateral management, information services, consulting services, and related management department under other business.
Shenzhen Stock Exchange
The Shenzhen Stock Exchange (SZSE; Chinese: 深圳证券交易所) is one of China's three stock exchanges, alongside the Shanghai Stock Exchange and Hong Kong Stock Exchange. It is based in the Futian district of Shenzhen, Guangdong.[3] With a market capitalization of its listed companies around US$2.285 trillion in 2015, it is the 8th largest stock exchange in the world, and 4th largest in East Asia and Asia.
Korea Stock Market Overview
Korea Exchange (KRX) is the sole securities exchange operator in South Korea. It is headquartered in Busan, and has an office for cash markets and market oversight in Seoul. The Korea Exchange was created through the integration of Korea Stock Exchange, Korea Futures Exchange and KOSDAQ Stock Market under the Korea Stock & Futures Exchange Act. The securities and derivatives markets of former exchanges are now business divisions of Korea Exchange: the Stock Market Division, KOSDAQ Market Division and Derivatives Market Division. As of January 2015, Korea Exchange had 2,030 listed companies with a combined market capitalization of $1.2 trillion.Sustainable Stock Exchanges The exchange has normal trading sessions from 09:00 am to 03:30 pm on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.[2]
Motivation
Objectives
Cross shareholding is a situation in which a corporation owns stock in another company. So, technically, corporations own securities issued by other corporations. Cross shareholding can lead to double counting, whereby the equity of each company is counted twice when determining value. When double counting occurs, the security's value is counted twice, which can result in estimating the wrong value of the two companies.
Cross shareholding is very common in corporate world. Sometimes, there can be more than 10 companies involved and it is very difficult for investors and regulators to track who owns how much.
In this project, our group choose 1 or 2 big groups of companies from Korea and China with heavy cross shareholding between each other and conduct visualization and relationship analysis on their networks using R-Shiny so that people can have better picture of these companies’ network and easier to understand relationship between companies.
Big text== Data Source ==
