The purpose of this chapter is to provide an overview of the Chinese equity market. It is of particular importance because it sets the context for a more complete examination later in the book of the key issues for equity return predictability，such as market timing activity and trading strategies. For example，the large movements in the Chinese equity market as shown in Section 2.2.2.1 indicates that market timing may add value to the investment management process，which is corroborated by the empirical evidence in Chapter 6. Further discussion on the importance of this chapter to the overall research will be made in later sections.