Authors: Alfaro, J., Artaza, G., Freites, A., Rehner, J., & González, T. (2025)
Abstract: The Chinese stock market is the second largest in the world, with a combined market capitalization of the Shanghai and Shenzhen exchanges of approximately 11.7 trillion dollars at the beginning of 2025, representing 11.3% of the global stock market. China is the second most important foreign investment destination for Chilean pension funds, with 6.598 billion dollars as of June 2025, equivalent to 6.18% of funds invested abroad.
In Chile, knowledge of the financial markets of the Asian giant is limited, and media coverage of its domestic economic and financial affairs is scarce. This case report partially addresses this gap as a starting point for more detailed analyses of specific aspects of the Chinese financial system. It proposes a review of Chilean pension funds' exposure to Chinese financial instruments, as well as an introduction to the particular structure of the Chinese financial system, its strengths and weaknesses, and the Chinese government's intentions to further reform and liberalize the stock market.