On paper, China’s stock market looks huge. But in reality, most of it isn’t available to ordinary investors. According to MSCI, only 36% of yuan-denominated A-shares can actually be traded. The rest is tightly held by the state, showing just how much control the government has. For the biggest companies, the numbers are even smaller:
Agricultural Bank of China (~$350bn market cap) – 7.5%
Bank of China – 5.1%
PetroChina – 4.8%
And even this small portion of tradable shares is split in unusual ways:
46% held by the companies themselves
27% by retail investors
23% by local institutions like pension funds and insurers (often linked to the state)
Only 4% by foreign investors
The takeaway: there isn’t much real, independent demand driving the market. So when Beijing launches stock-buying programs, it’s less a show of confidence and more a sign that without government support, there wouldn’t be enough buyers to keep prices up.
