China Exchange for Cryptocurrency, Stocks, Metals, Rare Earths, Commodities. Chinese currency exchange. China Stock Exchange

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

It is difficult to surprise anyone with electronic money today. Webmoney, "Yandex. Money", PayPal and other services are used to pay for goods and services via the Internet. Not so long ago, a new type of digital currency appeared - cryptocurrency. The very first was Bitcoin. Cryptographic services are engaged in its emission. Scope of application - computer networks. Read more about what a cryptocurrency is and how it is used, read later in this article.

History

For the first time, the term "cryptocurrency" was used in relation to the Bitcoin payment system, which was created by Satoshi Nikamoto in 2009. He and a group of programmers developed a system of virtual money that can be used on the Internet without commissions or intermediaries. Virtual currency is created through mathematical algorithms, it is valid only on the network, but all over the world. Its main advantage is decentralization. No institution in the world controls the issuance of cryptocurrencies. The samethe fact imposes restrictions on the maximum volume of signs in circulation. In theory, the national unit of any country should be provided with internal resources. But cryptocurrency belongs to fiat money, that is, its circulation is not backed by government reserves.

The idea of conducting transactions that are not controlled by the state looked very tempting, and especially for representatives of the shadow business. Later, participants in the financial market saw the benefits of using cryptocurrencies. For them, virtual money, and then forks (copies) became tools with huge profitability and income. The Chinese cryptocurrency exchange, Bitstamp, BTC, MtGox and four dozen other markets offer everyone who wants to trade digital money.

Benefits

Until 2013, almost all cryptocurrencies operated on the Bitcoin code. Then platforms began to appear that supported not only exchange trading, but also purchases in stores, instant messengers, etc. By default, cryptocurrencies do not provide for refunds, forced freezing or blocking of accounts. But participants in transactions can voluntarily block access to their funds.

Most Popular Cryptocurrencies

Bitcoin (BTC) is considered to be electronic gold. According to the calculations of the founders, by 2040 21 million bitcoins will be issued. The 12 million "produced" to date has already been distributed among all participants. All transactions are irreversible, it is almost impossible to trace the path of the movement of funds. All operations are carried out directly betweenparticipants, that is, without a common server.

Litecoin (LTC) is the best analogue of Bitcoin from a technical point of view. It is emitted at a rate of up to 25 pieces per minute. The speed of currency exchange between participants is 4 times less.

Peercoin (PPC) is a copy (fork), which is not limited in emission. The exchange rate is adjusted by annual 1% inflation. The income from the use of the currency is distributed not only among the owners of the site, but also among the owners. Thanks to this approach, the capitalization of the currency for the first 6 months after the appearance amounted to $135 million.

Chinese exchange gives everyone the opportunity to buy and sell less popular cryptocurrencies. Namecoin (NMC) is most often used by website owners to pay for a domain name in the.bit zone. Quarkcoin (QRK) differs from all others in a high degree of protection. All transactions go through nine stages of encryption with six different types of codes. Also in circulation is Feathercoin (an improved copy of LTC), Protoshare, Worldcoin and Megacoin. Each of them has its own characteristics, but in general they somehow copy bitcoin.

The Chinese Currency Exchange allows participants to conduct two types of trading. On some, virtual money is exchanged, on others, digital currencies are exchanged for world ones.

Stock market

In June 2015, the Chinese stock exchange suffered its biggest drop in 10 years. The main stock index, the Shanghai Composite, fell 12.1% in just one week. The situation is also exacerbated by the slowdown in the industrialsector, the crisis in the construction industry. For a long time, the market has been developing, moving the country's economy forward. Rising share prices allowed the state and banks to replenish the treasury. A significant role in this was played by advertising in the state media with a call to invest in shares. The Chinese Stock Exchange showed an average daily turnover of 200 billion yuan in 2014. By April 2015, it was already 1 trillion. As a result of the rapid growth, Chinese stocks were heavily overvalued.

Bubble burst

July 7, 2015 173 companies stopped trading stocks due to a sharp collapse in prices. The main problem is margin trading. Investors used debt to buy securities. Shares of companies listed on China lost a total of $3 trillion. In just one month, the growth of the stock market fell from 122% to 36%. The last time such a picture was observed in 1992.

Desperate measures

Investors who bought shares yesterday have now begun to sell them. Prices are falling, people are going bankrupt. The situation is aggravated by the fact that new market participants are ordinary consumers who really do not know anything about stocks. Thanks to active advertising in the media, the process of investing has become fashionable among the population. As you know, lack of knowledge is the main cause of fear. This primarily concerns the stock market.

The state, represented by the People's Bank and the Central Bank Regulatory Commission, took measures to stabilize the situation in the country. First, a ban was placed on initial public offeringson the market. The bank began to buy securities with high capitalization. Then the agency China Securities Finance Corp. was financed, where investors can now apply for new loans to buy shares. Theoretically, these measures should improve the market situation, but not for long.

China Commodity Exchange

PRC is the leader in gold mining and the world's largest importer. Since 2009, the country's government has been hiding the national reserves of the precious metal. For a long time, gold was mined in alluvial deposits until they were recognized as harmful to the environment. Initially, only the state had the right to trade in precious metals. The Chinese Exchange opened access to the purchase of gold to the jewelry industry only in 1982. For a long time, this metal was treated as a symbol of prosperity. Therefore, when the Chinese gold exchange in Shanghai was founded in 2002, banks, factories, enterprises and individuals began to buy up the precious metal. In 2014, a free trade zone was created, investors gained access to world markets. Goods that go on sale in China are first tested for compliance with weight and purity standards.

Since 1919, the price of gold has been formed according to the London Gold Fix standards. Twice a day it was installed by representatives of four major banks in the world. Since March 2015, six financial institutions have been participating in the new ICE auction (in the future this figure will increase).

ChineseShanghai Metal Exchange

SHFE (English abbreviation) was founded in 1999, after the merger of the food, commodity and metal exchanges into one structure. It is under the control of the RZB Regulatory Commission. SHFE trades futures for rebar, zinc, rubber, lead, fuel oil, aluminum, copper.

Today, the Chinese metal exchange is one of the main price-setting platforms. The cost of contracts on it is attractive to all parties to the transaction. SHFE is managed by a CEO who has 17 departments. The main oversight body is the board, to which the committees report:

• information technology;
• metals;
• gold and steel;
• trading;
• match;
• qualification of participants;
• arbitrage;
• finance;
• industry and energy.

A powerful electronic system with two-way satellite communication was created especially for bidding. She quickly accepts orders and processes data online.

China Rare Earth Exchange is open from 9 am to 11.30 am. After a two-hour break, the trading results are summed up. All transactions are conducted electronically. Banks are responsible for daily clearing. All 200 participants of the exchange are divided into two groups. The first half are brokers, the second half are proprietary members. Each order is processed by a SHFE member.

Improve security

The panic that formed in the market this summer led to serious financiallosses. To prevent such a situation from occurring in the future, a crisis prevention mechanism was introduced. Its essence lies in the fact that the futures and two stock exchanges will suspend trading for 30 minutes if the index changes by 5% during the day. If fluctuations exceed 7%, trading will be closed until the next business day.

New platform

Bohai Commodity Exchange was the first to receive permission to conduct transnational trading in RMB in 2013. It began functioning in 2009 with the sale of oil and coking coal. Today, 70 positions are traded on the exchange, including metals and raw materials.

In 2013, China announced a development strategy aimed at establishing relationships with the countries of Eurasia. It includes two directions: the economic belt and the sea route. The goal of the program is to open access to international trade to local investors. As part of this project, the Chinese electronic platform Bohai will launch the platform by the end of 2015. It will give investors access to trade with the countries of the sea route belt.