1. Shadow banks: Simply understood, they are financial institutions that can provide credit but are not banks. China’s shadow banking mainly includes off-balance sheet businesses such as trust companies, guarantee companies, pawn shops, money market funds, various private equity funds, small loan companies, and financial management by various financial institutions. Characteristics: There are many institutions, small scale, low leverage level and rapid development.

2. Capital market: The capital market refers to the market for the issuance and trading of securities such as stocks and bonds, as well as the market for long-term capital deposits and loans, corporate mergers and acquisitions, and asset restructuring.

3. Hot money: Also known as hot money or speculative short-term capital, it usually refers to short-term capital that flows quickly for the purpose of speculative profit. Its entry and exit often easily induce market and even financial turmoil. The investment objects of hot money are mainly foreign exchange, stocks, precious metals and their derivatives markets, etc. It has the characteristics of strong speculative nature, fast liquidity and strong concealment.

4. Roadshow: (Roadshou) is a widely used method of promoting securities issuance in the world. It refers to the promotion activities of securities issuers to institutional investors before issuing securities. The purpose of roadshows is to promote communication and exchange between investors and stock issuers to ensure the smooth issuance of stocks. Through roadshows, stock issuers and underwriters can more objectively determine the issuance volume, issue price and issuance timing.

5. Blue chip stocks: Blue chip stocks refer to the stocks issued by large companies that occupy a dominant position in their respective industries, have excellent performance, active transactions, and generous dividends. The word “blue chip” originated from Western casinos. Blue chips are the most valuable chips, so investors applied it to stocks and formed the term “blue chip stocks”.

6. Policy banks: Policy banks generally refer to financial institutions established by the government for the purpose of implementing national industrial policies and regional development policies and not for profit. In 1994, my country established three policy banks – China Development Bank, Export-Import Bank of China and Agricultural Development Bank of China. China Development Bank was converted into a commercial bank on December 16, 2008.

7. Price-to-earnings ratio: The price-to-earnings ratio refers to the ratio of a stock’s price to its earnings per share during an examination period (usually 12 months). Investors usually use this ratio to estimate the investment value of a stock. Generally speaking, the lower the P/E ratio of a stock, the shorter the investment payback period, the smaller the investment risk, and the greater the investment value of the stock.

8. Offshore finance: refers to the provision of settlement, lending, capital flow, insurance, trust, securities and Financial services such as derivatives trading, and financial activities that are not restricted by the general financial laws and regulations of the country where the market is located and the country where the currency is issued. The main business of offshore finance is to absorb funds from non-residents and serve the financing needs of non-residents. Therefore, it is vividly described as a financial business with “both ends outside”, and the market formed is called the offshore financial market.

9. Financial disintermediation: refers to the supply of funds bypassing the intermediary system such as commercial banks and directly flowing into the hands of demanders and financiers, resulting in extracorporeal circulation of funds. For example, when a company needs funds, it directly issues bonds, stocks or short-term commercial papers in the market instead of directly obtaining loans from commercial banks. From the perspective of financing methods, financial disintermediation is a process in which social financing gradually changes from indirect financing to direct financing.

10. “First board”, “Second board” and “Third board”
First board market: also known as the main board market, refers to the securities market in the traditional sense and is the main place for the issuance, listing and trading of securities in a country or region. The main board market is the most important part of the capital market. It can reflect economic development to a large extent and is known as the “barometer of the national economy.” Most of its listed companies are large and mature companies with large capital scale and stable profitability.

The second board market: It is mainly established for small and medium-sized emerging companies. Its listing requirements are generally wider than those of the “first board”. Compared with the main board market, the second board market has the characteristics of forward-looking, high-risk, strict regulatory requirements, and obvious high-tech industry orientation. The GEM of Shenzhen Stock Exchange belongs to the second board market.
The third board market: the agency share transfer business refers to the special transfer business provided by securities companies with the qualification to handle unlisted company share transfer business for unlisted companies through electronic transactions approved by the Securities Association of China. Its services The targets are small and medium-sized high-tech enterprises. The New Third Board that we often talk about now is the quotation and transfer system of Zhongguancun Science and Technology Park Unlisted Co., Ltd.