Shanghai Stock Exchange
August 5, 2023
Shanghai Stock Exchange
Let’s find everything about the Shanghai Stock Exchange (SSE) in one place. Here At Aron Groups Broker, we have decided to look closely into the largest Stock Exchange in China by market capitalization to help you get familiar with popular exchanges worldwide.
So far, we have talked about different exchanges in London, Hong Kong, and New York City, and now we are going to China to meet the great rival of the Shenzhen Stock Exchange Closed it. Stay tuned to learn more about this huge exchange.
Table of Contents
What is Shanghai Stock Exchange?
The Shanghai Stock Exchange (SSE) Is the largest in mainland China and is known as a non-profit organization owned by the China Securities Regulatory Commission (CSRC). The exchange is designed to trade stocks, funds, bonds, and derivatives. A huge part of the total market cap of the Shanghai stock exchange is made up of state-run companies like Banks and insurance companies which made the Shanghai Stock Exchange rank fourth in the world in terms of total market capitalization. Companies share or are divided into two main stock classes, A-shares and B-shares.
There are a number of products available on the Shanghai stock exchange, including A-Shares, B-Shares, securities investment funds, spot T-bond, T-bond repos, convertible bonds, the SSE Composite Index, the performance benchmark SSE 180 Index, and the large-cap SSE 50 Index.
The history of the Shanghai stock exchange
The SSE was created on November 1990 as a subdivision of the China Security Regulatory Commission and soon managed to become the dominant stock trading market in the whole of China And has grown rapidly in past decades. From 2004 to 2007, the Shanghai stock exchange market capitalization rose from $314 billion to $3.7 trillion, and the value of shares traded on this exchange in the same period rose from $322 billion to $4.07 trillion. In 2008 the Shanghai stock exchange experienced a sharp slide but soon was able to recover and raise some 81% in the next 12 months. The Shanghai Stock Exchange, and Latin America’s biggest exchange operator BM&F Bovespa signed an agreement in 2011 that resulted in Cross listings of stocks.
Following the trade war between the US and China, the Chinese president announced a new Technology Innovation board in 2018 which made it easier for high-tech companies to access funding for IPOs.
How does the Shanghai stock exchange work?
There are two main categories of stock for every company listed on the SSE:
A-shares Are stocks quoted in Yuan, and only foreign investors have access to this type of stock through a qualified program called QFII.
The second class of stocks is quoted In US dollars, and generally, foreign investors use this class of stocks.
Trading Chinese equities is available on the Hong Kong Exchange, which is also referred to as H-shares. As previously noted, most of the total market capitalization of the Shanghai stock exchange is made up of state-run companies trading on the exchange since 2001.
Top companies listed in an SSE
Here we are going to mention some of the big names of companies listed in the Shanghai stock:
- The Bank of China
- CITIC Securities
- Industrial and Commercial Bank of China
- China Citic Bank
- Qingdao Haier
Listing in the Shanghai stock exchange
for every company to be listed on the Shanghai stock exchange, the following requirements should be met:
- The company must be CSRC approved.
- The company’s total share capital should be more than 50 million renminbi (RMB).
- T more than 25% of total issued shares must be publicly offered unless the company’s total share capital is more than RMB 400 million. In that case, the total number of publicly offered a stock should be higher than 10%.
- The company should have a clear report of its past 3 years’ performance to guarantee it didn’t involve any major illegal acts.
The Star Market
the Star Market began to work in July 2019. the share belongs to the Shanghai Stock Exchanges Science and Technology Innovation Board, announced by China president in 2018 and has been called China’s answer to NASDAQ. The price of shares of the Star Market rises two 520% on the first day. Since day one, software robotic and biotech companies applied to list on the Star Market.
Working hours of Shanghai stock exchange
the Shanghai stock exchange opens at 9:15 a.m. and closes at 3:30 p.m. from Monday to Friday. According to your time zone, you need to find the best action from different locations of the four to trade Forex.
How to trade on the Shanghai stock exchange
buying stocks of Chinese companies is a perfect way to make a profit, but it involves risks due to price fluctuations. Before investing in Chinese companies, you need to learn more about the market’s volatility because China’s Market is volatile. If you are interested in the Shanghai stock exchange is better to consult with Aron Groups’ advisors before making a serious decision. Our advisor helps you make a diverse portfolio, sign up, and create a trading account in no time,
In the end
The Shanghai Stock Exchange is the largest Exchange in China that arrivals New York City exchange and provide different products for local and international investors. Trading on Forex, you will need every piece of information you can find about Forex and the international currency Market. At Aron Groups Broker, we provide the best Financial Solutions and trading platforms to help you become a professional Trader.