Chinese stock market participation low, long-term investment planning needed
In the past two decades, the Chinese economy has undergone drastic reforms in an effort to compete more effectively on the international market. These reforms included the creation and proliferation of a Chinese stock market. Since China is largest creditor for the U.S., the two nations' economies are tightly intertwined, with positive or negative effects from either economy affecting the other. Now, a researcher from the University of Missouri has found that only 32 percent of Chinese households have any kind of stocks, bonds or mutual funds, and only about half have a long-term financial plan. Rui Yao, an associate professor of personal financial planning at MU, says this number is concerning for Chinese' long-term economic outlook because it shows the lack of long-term financial planning among Chinese citizens.