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Shanghai Stock Exchange

The Shanghai Stock Exchange (SSE) is the largest in mainland China. The market trades stocks, funds, bonds and derivatives from a large number of listed companies. This page will break down how the SSE works, along with its various indices, rules and requirements. It will also detail how you can start trading on the SSE, with tips to help you get going. A list of the top brokers for trading on the Shanghai Stock Exchange is provided below.To get more shanghai stock news, you can visit shine news official website.

What Is The Shanghai Stock Exchange?
The Shanghai Stock Exchange (SSE) is a stock exchange based in the city of Shanghai, China. It is the largest stock exchange in mainland China and the 4th largest in the world, with a market capitalisation of USD 6.98 trillion in 2020 and a daily trading volume of around USD 17.86 trillion. The SSE is a non-profit organisation that is managed and administered by the China Securities Regulatory Commission (CSRC).

The Shanghai Stock Exchange Composite (also known as the SSE Composite or Shanghai Composite) Index is the most common indicator used to reflect the performance of the SSE market. This is an index of all the stocks that are traded on the Shanghai Stock Exchange, of which there were over 1,800 in January 2021.
The market for shares and securities first appeared in Shanghai in June of 1866. At this point, Shanghai's International Settlement developed everything required for a thriving stock market: several banks, legal frameworks for joint-stock companies and interest in diversification.

The following years were rocky for the market, there were several crashes caused by credit and banking crises. In 1891, during a boom in mining shares, the "Shanghai Sharebrokers' Association" was founded by foreign businessmen, headquartered in Shanghai. In 1904, the association applied for the market to be renamed the Shanghai Stock Exchange.

1920 and 1921 saw the formation of the Shanghai Securities and Commodities Exchange and the Shanghai Chinese Merchant Exchange, both of which were merged into the Shanghai Stock Exchange in 1929.

The market closed on 5th December 1941 when Japanese forces occupied Shanghai. The exchange was briefly reopened in 1946, although it only remained this way for 3 years until the communist revolution in 1949 shut it down.

Recent History
The Shanghai Stock Exchange as we know it today was re-established on 26th November 1990 following years of cultural and economic revolution within the People's Republic of China. Trading operations began a few weeks after this, on 19th December.

In 1997, it was decided by the State Council of China that the Shanghai Stock Exchange would be managed directly by the China Securities Regulatory Commission (CSRC). A rough period from 2001-2005 saw the market's value halve, after peaking in 2001. This saw new rules put in place as well as a ban on new initial public offerings (IPOs). Full operation was resumed in 2006 after the ban was lifted.

2007 and 2008 saw a period of frenzy as China's stock exchange temporarily became the world's second-largest stock exchange. This culminated in the Shanghai Composite Index reaching an all-time high of 6,124.044 points on 16th October 2007. However, the annual report at the end of 2008 had the index down a massive 65%, largely because of the impact of the global economic crisis.

In 2019, the Shanghai Stock Exchange launched the STAR Market (officially the Shanghai Stock Exchange Science and Technology Innovation Board). The STAR market featured only technology-related companies and was touted as a direct rival to the US' NASDAQ market.

There are two main classes of stocks on the Shanghai Stock Exchange, A shares and B shares. These differ both in the currency they are quoted in and their accessibility for investment.

B-shares are quoted in US Dollars (USD) and are open to foreign investment. On the other hand, A-shares are quoted in the Chinese Yuan (CNY) and are only available to foreign investment through a qualified program known as QFII.

A QFII is a Qualified Foreign Institutional Investor. This is a program that allows international investors, with the correct license, to invest in major Chinese companies. Before the program was introduced in 2002, investors from other nations were not permitted to buy or sell stocks on any of the Chinese exchanges.

Much of the market cap of the Shanghai Stock Exchange is made up of former state-run companies like the major Chinese banks and insurance companies and you won't find popular foreign stocks like GameStop on there. In fact, many of the companies have only been trading on the SSE since 2001 following reforms to companies.

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Wolff Temple

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Wolff Temple
Joined: April 21st, 2021
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