&gt; <i>For a fully functioning stock market you need...stoggy [</i>sic<i>] old buy&#x2F;hold&#x2F;long only investors</i><p>I&#x27;d qualify this with value orientation. To have a successful stock market you need the factors you mentioned plus long-term holding <i>value</i> investors.<p>To illustrate the difference, consider what would happen if the Warren Buffetts and David Teppers of the American capital markets put all their money into ETFs. You&#x27;d have no price discovery. Someone needs to be wiling to do their own research, reach conclusions with conviction, and trust in those conclusions through short- and medium-term wobbles.<p>Long-term value investors require capital. They also need transparent, liquid markets. China has capital and liquidity. It lacks (along with India, Russia, and a number of other &quot;emerging&quot; equity markets) reliable data and&#x2F;or trustworthy institutions. This deters long-term value investors [1].<p>[1] <a href="https:&#x2F;&#x2F;www.scribd.com&#x2F;embeds&#x2F;294654490&#x2F;content?start_page=1&amp;view_mode=scroll&amp;access_key=key-xfqKH8QC2LsXN87EW4uk&amp;show_recommendations=false" rel="nofollow">https:&#x2F;&#x2F;www.scribd.com&#x2F;embeds&#x2F;294654490&#x2F;content?start_page=1...</a>