This gives it the role of Africa's representative and it is of particular interest to China as a bridgehead to access this resource-rich continent. Second, South Africa is the newest member of the BRICS grouping. Similarly, the techniques highlighted in the book for dealing with volatility are applicable to similar markets elsewhere. Understanding the South African market provides insight into the paths that these markets will follow in future. Global emerging markets are evolving into developed markets, while frontier markets are becoming the new emerging markets. It is an integral part of the world-class financial infrastructure of the country, and South Africa was ranked first of 139 countries for its regulation of securities exchanges by the World Economic Forum in 2010. It is by far the largest of Africa's 29 exchanges and accounts for over a third of the stocks listed on the continent. It is one of the oldest stock exchanges in the world and is the eighteenth largest in the world in terms of market capitalisation and trade.
However, while the country shows emerging characteristics, its stock market is highly developed. Why is the South African stock market important? First, it is classified as an emerging market.
