STOCK MARKETS IN CHINA
Shanghai Stock Exchange (SSE) was founded on November 26th, 1990 and in operation on December 19th of the same year. It is a membership institution directly governed by the China Securities Regulatory Commission(CSRC). The SSE bases its development on the principle of “legislation, supervision, self-regulation and standardization” to create a transparent, open,safe and efficient marketplace. The SSE endeavors to realize a variety of functions: providing a marketplace and facilities forsecurities trading; formulating business rules; accepting and arranging listings; organizing and monitoring securities trading; regulating members and listed companies and managing and disseminating market information.After several years of operation, the SSE has become the most preeminent stock market in Mainland China in terms of the number of listed companies, number of shares listed, total market value, tradable market value, securities turnover in value, stock turnover in value, and the T-bond turnover in value. December 2007 ended with over 71.30 million investors and 860 listed companies. The total market capitalization of the SSE hit RMB 26.98 trillion. In 2007, capital raised from the SSE market surpassed RMB 661.6 billion. A large number of companies from key industries, infrastructure and high-tech sectors have not only raised capital, but also improved their operation mechanisms through listing on the Shanghai stock market.
Entering the new century, SSE is faced with great opportunities as well as challenges to further boost market construction and regulation. Combining the cutting-edge hardware facilities, favorable policy conditions in Pudong, and the exemplary role of the Shanghai economy, the SSE is fully committed to the goal of State-owned industrial enterprises reform and developing Shanghai into an International financial center with great confidence.
Shenzhen Stock Exchange (SZSE), established on December 1st, 1990, the SZSE is a self-regulated legal entity under the supervision of the China Securities Regulatory Commission (CSRC). It provides the venue and facilities for centralized securities trading. It also organizes, supervises securities trading and performs duties prescribed by laws, regulations, rules and policies. Its main functions include providing the venue and facilities for securities trading; formulating operational rules; receiving listing applications and arranging securities listing; organizing and supervising securities trading; supervising its members; regulating listed companies; managing and disseminating market information; and other functions as approved by the CSRC.
The SZSE is committed to developing China’s multi-tier capital market system, serving national economic development and transformation and supporting the national strategy of independent innovation. The SME Board was launched in May 2004. The non-listed shares quotation and transfer system (OTC market) began its pilot operation in Zhongguancun Science Park in January 2006. The ChiNext market was inaugurated in October 2009. Thus the SZSE has basically put in place a framework of multi-tier capital market comprising the Main Board, SME Board, ChiNext and the OTC market. The Shenzhen Stock Exchange has become an emerging market that attracts worldwide attention. By 30 June 2011, the SZSE had 1,312 listed companies, with 484 on the Main Board, 592 on the SME Board and 236 on the ChiNext. Their total market capitalization amounted to RMB 8.3 trillion (USD 1.3 trillion). In addition, 88 companies from Zhongguancun Science Park were quoted on the OTC market. In the first half of 2011, the SZSE raised RMB 119.5 billion (USD 18.7 billion) in IPO proceeds and recorded a total trading value of RMB 10.2 trillion (USD 1.6 trillion). The SZSE’s products cover equities, mutual funds and bonds. The product lines include A-shares, B-shares, indices, mutual funds (including ETFs and LOFs), fixed income products (including SME collective bonds and asset-backed securities), and diversified derivative financial products (including warrants and repurchases). The SZSE plays an increasingly important role in supporting the real economy and transforming the nation’s economic growth model.
Since 2000, the SZSE has signed MOUs with 28 major stock exchanges in the world and enhanced cross-border cooperation and communications. It has also taken an active part in International securities organizations. The SZSE is a member of both the World Federation of Exchanges (WFE) and the Asian and Oceanian Stock Exchanges Federation (AOSEF). It is also an affiliate member of the International Organization of Securities Commissions (IOSCO).
Fill out the form below to signup to our blog newsletter and we'll drop you a line when new articles come up.