Nasdaq US stock data is the most widely adopted market data source for brokers and investors in China, offering broad market coverage and high trade-volume share across all major US exchanges.
1. Nasdaq US stock data is widely recognized as the standard data source by brokers and investors in China.
- The US stock market has 16 exchanges, each of which can quote different prices for the same stock. While this is standard practice in the US, investors in China expect a single unified price for each stock.
All 10 major stock trading apps in China use Nasdaq US stock data, which has become the industry benchmark for brokers exploring opportunities in the US stock market.
- Since May 17, 2021, Nasdaq has designated its daily closing data as the US composite closing data for the China market.
2. Nasdaq US stock data has become an industry benchmark due to its high quality and broad market coverage:
- All 16 US stock exchanges can trade stocks listed on any of the other exchanges. Each exchange considers its trade-volume market share a key indicator of data quality.
More than 40% of stock trades occur outside the listing exchange through the FINRA/Nasdaq Trade Reporting Facility. These off-exchange transactions are also factored into market share calculations.
Public data shows that 43.5% of NYSE-listed stocks are traded on Nasdaq, nearly 60% of Nasdaq-listed stocks are traded on Nasdaq, and Nasdaq captures 70% of US IPOs.
Even for China Concept Stocks not listed on Nasdaq, approximately 50% of their US trade volume occurs on Nasdaq, reinforcing its position as the industry benchmark.
(Source: www.nasdaq.com)