In China's stock market, investors often hear the terms "internal market" and "external market". Although these two concepts appear frequently, not everyone can fully understand themlimitholdemmeaning. In this articlelimitholdemWe will discuss in depth what "inner market" and "outer market" refer to in stock trading.
defined
First, let's define "inner disk" and "outer disk". The so-called "internal market" refers to the part that investors trade within the exchange, that is, the company's shares listed on the domestic stock exchange. These exchanges usually include the Shanghai Stock Exchange and the Shenzhen Stock Exchange. "External trading" refers to investors 'participation in stock trading in overseas markets through financial instruments such as QDII (Qualified Domestic Institutional Investor) and Shanghai-Hong Kong Stock Connect.
market characteristics
The inner market and the outer market have their own unique characteristics. The in-market market is dominated by domestic investors and regulated by the China Securities Regulatory Commission. Listed companies must also comply with domestic laws and regulations and exchange listing requirements. In contrast, external markets are usually more international, investors have access to more foreign companies and markets, and have higher diversity and investment options.
Investment risks and returns
In terms of risks and returns, there are also differences between inner and outer markets. Due to the great influence of domestic policies and economic conditions, the internal market may face more obvious risk fluctuations. However, this also provides investors with the opportunity to gain an in-depth understanding and grasp of the domestic market. Relatively speaking, external markets may be more stable because they are influenced by the global economy and policies of multiple countries, spreading risks in the single market.
selection basis
Investors should consider the following factors when choosing whether to invest in the internal market or in the external market:
Factors inside and outside regulatory environment regulated by the China Securities Regulatory Commission, international regulatory bodies regulated market volatility may be higher, may be lower, investment threshold is lower, and usually requires channels such as QDII or Shanghai-Hong Kong Stock Connect Market Range Domestic companies Global companiesThrough the above table, we can see the main differences between the inner market and the outer market in terms of supervision, risk, investment threshold and market scope.
investor strategy
Taking into account personal investment goals, risk tolerance and market knowledge, investors can formulate corresponding strategies. For example, investors with in-depth understanding of the domestic market may be more inclined to invest in the in-market; while investors who want to diversify risks and pursue long-term stable returns may prefer the external market.
In short, whether it is internal or external, it is an important part of stock trading. Investors should reasonably choose the investment market based on their actual situation and investment philosophy to achieve the best investment results. After understanding these two concepts, investors can make smarter decisions and realize the appreciation of assets.