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Encyclopedia > Shanghai Stock Exchange
Shanghai Stock Exchange
上海证券交易所
Type Non-profit institution
(administered by CSRC)
Founded 1891 as Shanghai Sharebrokers' Association
1904 renamed as Shanghai Stock Exchange
1990 re-established after being suspended in 1949
Headquarters Flag of the People's Republic of China Shanghai, China
Key people Geng Liang, Chairman
Zhu Congjiu, President
Industry Financial
Products Securities exchange
Website www.sse.com.cn

The Shanghai Stock Exchange (SSE) (Simplified Chinese: 上海证券交易所; Traditional Chinese: 上海證券交易所; pinyin: Shànghǎi Zhèngquàn Jiāoyìsuǒ) is a Chinese stock exchange based in the city of Shanghai, with a market capitalization of nearly US$2.38 trillion making it the largest in mainland China and fifth largest in the world. The current exchange was re-established on November 26, 1990 and was in operation on December 19 of the same year. It is a non-profit organization directly administered by the China Securities Regulatory Commission (CSRC). Image File history File links No higher resolution available. ... The China Securities Regulatory Commission (zh: 中国证券监督管理委员会) is an institution of the State Council of the Peoples Republic of China (PRC). ... Year 1891 (MDCCCXCI) was a common year starting on Thursday (link will display the full calendar) of the Gregorian calendar (or a common year starting on Saturday of the 12-day slower Julian calendar). ... 1904 (MCMIV) was a leap year starting on a Friday (see link for calendar). ... Year 1990 (MCMXC) was a common year starting on Monday (link displays the 1990 Gregorian calendar). ... Image File history File links Flag_of_the_Peoples_Republic_of_China. ... For other uses, see Shanghai (disambiguation). ... A Chairman is the presiding officer of a meeting, organization, committee, or other deliberative body. ... President is a title held by many leaders of nothing, companies, trade unions, universities, and countries. ... FINANCIAL is the weekly English-language newspaper with offices in Tbilisi, Georgia and Kiev, Ukraine. ... A stock exchange, share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and traders, to trade company stocks and other securities. ... A website (alternatively, Web site or web site) is a collection of Web pages, images, videos and other digital assets that is hosted on one or several Web server(s), usually accessible via the Internet, cell phone or a LAN. A Web page is a document, typically written in HTML... This article does not cite any references or sources. ... Traditional Chinese characters refers to one of two standard sets of printed Chinese characters. ... Pinyin, more formally called Hanyu Pinyin (Simplified Chinese: ; Traditional Chinese: ; Pinyin: ), is the most common variant of Standard Mandarin romanization system in use. ... For other uses, see Shanghai (disambiguation). ... Market capitalization, or market cap, is a measurement of corporate or economic size equal to the stock price times the number of shares outstanding of a public company. ... ... This is a list of stock exchanges. ... is the 330th day of the year (331st in leap years) in the Gregorian calendar. ... Year 1990 (MCMXC) was a common year starting on Monday (link displays the 1990 Gregorian calendar). ... is the 353rd day of the year (354th in leap years) in the Gregorian calendar. ... The China Securities Regulatory Commission (zh: 中国证券监督管理委员会) is an institution of the State Council of the Peoples Republic of China (PRC). ...


Mainland China has a second, smaller, stock exchange: the Shenzhen Stock Exchange, located in the city of Shenzhen. The distinction is made for Mainland China because the Hong Kong Stock Exchange, located in the special administrative region of Hong Kong, is the largest stock exchange in China, and has a separate history. Shenzhen Stock Exchange building Shenzhen Stock Exchange building Shenzhen Stock Exchange (深圳交易所) is one of the Peoples Republic of Chinas three stock exchanges. ... Shenzhen is a sub-provincial city of Guangdong province in southern China. ... The Hong Kong Stock Exchange (Traditional Chinese: , also 港交所; abbreviated as HKEX ; SEHK: 0388) is the stock exchange of Hong Kong. ... A Special Administrative Region (SAR) of the Peoples Republic of China is an administrative division of the Peoples Republic of China (PRC). ...

Contents

History

Shanghai Stock Exchange building (in 2005) at Shanghai's new Pudong financial district.

The formation of the International Settlement (foreign concession areas) in Shanghai as a result of the Treaty of Nanking of 1842 (which ended the First Opium War) and subsequent agreements between the Chinese and foreign governments are crucial to the development of foreign trade in China and of the foreign community in Shanghai. The market for securities trading in Shanghai begins in the late 1860s. The first share list appeared in June 1866 and by then Shanghai's International Settlement had developed the conditions conducive to the emergence of a share market: several banks, a legal framework for joint-stock companies, and an interest in diversification among the established trading houses (although the trading houses themselves remained partnerships). Image File history File links No higher resolution available. ... Image File history File links No higher resolution available. ... For other uses, see Shanghai (disambiguation). ... Pudong seen from the Bund Pudong (Simplified Chinese: ; Traditional Chinese: ; Hanyu Pinyin: ), officially known as Pudong New Area (浦東新區, pinyin: Pǔdōng Xīn Qū), is a district of Shanghai, China. ... This article or section needs to be wikified. ... For other uses, see Shanghai (disambiguation). ... The Treaty of Nanjing (Chinese: 南京條約, Nánjīng Tiáoyuē) is the agreement which marked the end of the First Opium War between the United Kingdom and China. ... 1842 was a common year starting on Saturday (see link for calendar). ... Combatants Qing China British East India Company Commanders Daoguang Emperor Charles Elliot, Anthony Blaxland Stransham The First Opium War or the First Anglo-Chinese War was fought between the United Kingdom and the Qing Empire in China from 1839 to 1842 with the aim of forcing China to import British... Securities are tradeable interests representing financial value. ... // The First Transcontinental Railroad in the USA was built in the six year period between 1863 and 1869. ... 1866 (MDCCCLXVI) is a common year starting on Monday of the Gregorian calendar or a common year starting on Wednesday of the 12-day-slower Julian calendar. ... A joint stock company is a special kind of partnership. ...


In 1891 during the boom in mining shares, foreign businessmen founded the "Shanghai Sharebrokers' Association" headquartered in Shanghai as China's first stock exchange. In 1904 the Association applied for registration in Hong Kong under the provision of the Companies ordinance and was renamed as "Shanghai Stock Exchange". The supply of securities came primarily from local companies. In the early days, banks dominated private shares but, by 1880, only the Hong Kong and Shanghai local banks remained. Year 1891 (MDCCCXCI) was a common year starting on Thursday (link will display the full calendar) of the Gregorian calendar (or a common year starting on Saturday of the 12-day slower Julian calendar). ... 1904 (MCMIV) was a leap year starting on a Friday (see link for calendar). ... Year 1880 (MDCCCLXXX) was a leap year starting on Thursday (link will display the full calendar) of the Gregorian calendar (or a leap year starting on Tuesday of the 12-day slower Julian calendar). ...


Later in 1920 and 1921, "Shanghai Securities & Commodities Exchange" and "Shanghai Chinese Merchant Exchange" started operation respectively. An amalgamation eventually took place in 1929, and the combined markets operated thereafter as the "Shanghai Stock Exchange". Shipping, insurance, and docks persisted to 1940 but were overshadowed by industrial shares after the Treaty of Shimonoseki of 1895, which permitted Japan, and by extension other nations who had treaties with China, to establish factories in Shanghai and other treaty ports. Rubber plantations became the staple of stock trading beginning in the second decade of the 20th century. 1920 (MCMXX) was a leap year starting on Thursday. ... Year 1921 (MCMXXI) was a common year starting on Saturday (link will display the full calendar). ... Year 1929 (MCMXXIX) was a common year starting on Tuesday (link will display the full calendar) of the Gregorian calendar. ... Year 1940 (MCMXL) was a leap year starting on Monday (link will display the full 1940 calendar) of the Gregorian calendar. ... The Shunpanrō hall where the Treaty of Shimonoseki was signed The Treaty of Shimonoseki (Japanese: 下関条約, Shimonoseki Jōyaku), known as the Treaty of Maguan (T. Chinese: 馬關條約, S. Chinese: 马关条约;) in China, was signed at the Shunpanrō hall on April 17, 1895 between the Empire of Japan and the Qing Empire. ...


By the 1930s, Shanghai had emerged as the financial center of the Far East, where both Chinese and foreign investors could trade stocks, debentures, government bonds, and futures. The operation of Shanghai Stock Exchange came to an abrupt halt after Japanese troops occupied the Shanghai International Settlement on December 8, 1941. In 1946, Shanghai Stock Exchange resumed its operations before closing again 3 years later in 1949, after the Communist revolution took place. The 1930s (years from 1930–1939) were described as an abrupt shift to more radical and conservative lifestyles, as countries were struggling to find a solution to the Great Depression, also known as the World Depression. ... The far east as a cultural block includes East Asia, Southeast Asia, Northeast Asia and South Asia. ... In finance, a debenture is a long-term debt instrument used by governments and large companies to obtain funds. ... In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a specified price. ... is the 342nd day of the year (343rd in leap years) in the Gregorian calendar. ... For other uses, see 1941 (disambiguation). ... Year 1946 (MCMXLVI) was a common year starting on Tuesday (link will display full 1946 calendar) of the Gregorian calendar. ... Year 1949 (MCMXLIX) was a common year starting on Saturday (link will display the full calendar) of the Gregorian calendar. ... Combatants Nationalist Party of China Communist Party of China Commanders Chiang Kai-shek Mao Zedong Strength 4,300,000 (July 1946) 3,650,000 (June 1948) 1,490,000 (June 1949) 1,200,000 (July 1946) 2,800,000 (June 1948) 4,000,000 (June 1949) The Chinese Civil War...


After the Cultural Revolution ended and Deng Xiaoping rose to power, China was re-opened to the outside world in 1978. During the 1980s, China's securities market evolved in tandem with the country's economic reform and opening up and the development of socialist market economy. On 26 November 1990, Shanghai Stock Exchange was established again and began operation a few weeks later on 19 December. The Great Proletarian Cultural Revolution [1] in the Peoples Republic of China was a struggle for power within the Communist Party of China that manifested into wide-scale social, political, and economic chaos, which grew to include large sections of Chinese society and eventually brought the entire country to... Deng Xiaoping   (Simplified Chinese: ; Traditional Chinese: ; Pinyin: ; Wade-Giles: Teng Hsiao-ping; August 22, 1904 – February 19, 1997) was a prominent Chinese politician and reformer, and the late leader of the Communist Party of China (CCP). ... Year 1978 (MCMLXXVIII) was a common year starting on Sunday (link displays the 1978 Gregorian calendar). ... The 1980s refers to the years from 1980 to 1989. ... is the 330th day of the year (331st in leap years) in the Gregorian calendar. ... Year 1990 (MCMXC) was a common year starting on Monday (link displays the 1990 Gregorian calendar). ... is the 353rd day of the year (354th in leap years) in the Gregorian calendar. ...


Chronology

  • 1866 - The first share list appeared in June.
  • 1871 - Speculative bubble burst triggered by monetary panic.
  • 1883 - Credit crisis resulted speculation in Chinese companies.
  • 1890 - Bank crisis started from Hong Kong.
  • 1891 - "Shanghai Sharebrokers Association" established.
  • 1895 - Treaty of Shimonoseki opened Chinese market to foreign investors.
  • 1904 - Renamed to "Shanghai Stock Exchange".
  • 1909-1910 - Rubber boom.
  • 1911 - Revolution and the abdication of the Qing Dynasty. Founding of the Republic of China.
  • 1914 - Market closed for a few months due to the Great War (World War I).
  • 1919 - Speculation in cotton shares.
  • 1925 - Second rubber boom.
  • 1929 - "Shanghai Securities & Commodities Exchange" and "Shanghai Chinese Merchant Exchange" were merged into the existing Shanghai Stock Exchange.
  • 1931 - Incursion of Japanese forces into northern China.
Yang Kaisheng (right), vice chairman and president of ICBC, celebrates after striking the trade-starting gong during the ceremony of ICBC's IPO on 10/27/2006 at SSE.
  • 1930s - The market was dominated by the rubber share price movements.
  • 1941 - The market closed on Friday 5 December. Japanese troops occupied Shanghai.
  • 1946-1949 - Temporary resumption of the Shanghai Stock Exchange until the Communist takeover. Founding of the People's Republic of China in 1949.
  • 1978 - Deng Xiaoping re-opened China to the rest of the world.
  • 1981 - Trading in treasury bonds were resumed.
  • 1984 - Company stocks and corporate bonds emerged in Shanghai and a few other cities.
  • 1990 - The present Shanghai Stock Exchange re-opened in November 26 and began operation on December 19.
  • 2001-2005 - A four-year market slump which saw Shanghai's market value halved (after reaching a peak in 2001). A ban on new IPOs was put in April 2005 to curb the slump and allow more than US$200 billion of mostly state-owned equity to be converted to tradable shares.
  • 2006 - The SSE resumed full operation as the yearlong ban on IPOs was lifted in May. The world's largest ever (US$21.9 billion) IPO by the Industrial and Commercial Bank of China (ICBC) was launched in both Shanghai and Hong Kong stock markets.[1]
  • 2007 - A "stock market frenzy" as speculative traders rush into the market, making China's stock exchange temporarily the world's second largest in terms of turnover.[2] Fears of a market bubble and intervention by authorities caused large fluctuation not seen since the past decade.[3] [4]

Flag (1890-1912) Anthem Gong Jinou (1911) Territory of Qing China in 1892 Capital Shengjing (1636-1644) Beijing (1644-1912) Language(s) Chinese Manchu Mongolian Government Monarchy Emperor  - 1636-1643 Huang Taiji  - 1908-1912 Xuantong Emperor Prime Minister  - 1911 Yikuang  - 1911-1912 Yuan Shikai History  - Establishment of the Late... For the Chinese civilization, see China. ... Ypres, 1917, in the vicinity of the Battle of Passchendaele. ... Image File history File links No higher resolution available. ... Image File history File links No higher resolution available. ... Industrial and Commercial Bank of China (ICBC) (Simplified Chinese: ; Traditional Chinese: ; Pinyin: , more commonly just 工行 Gōngháng) is the largest of Chinas Big Four state-owned commercial banks, the other 3 banks being the Bank of China, Agricultural Bank of China, and China Construction Bank, and one of... A gong is any one of a wide variety of metal percussion instruments. ... “IPO” redirects here. ... is the 300th day of the year (301st in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... Deng Xiaoping   (Simplified Chinese: ; Traditional Chinese: ; Pinyin: ; Wade-Giles: Teng Hsiao-ping; August 22, 1904 – February 19, 1997) was a prominent Chinese politician and reformer, and the late leader of the Communist Party of China (CCP). ... “IPO” redirects here. ... Industrial and Commercial Bank of China (ICBC) (Simplified Chinese: ; Traditional Chinese: ; Pinyin: , more commonly just 工行 Gōngháng) is the largest of Chinas Big Four state-owned commercial banks, the other 3 banks being the Bank of China, Agricultural Bank of China, and China Construction Bank, and one of... Look up Turnover in Wiktionary, the free dictionary. ...

Structure

The securities listed at the SSE include the three main categories of stocks, bonds, and funds. Bonds traded on SSE include treasury bonds (T-bond), corporate bonds, and convertible corporate bonds. SSE T-bond market is the most active of its kind in China. There are two types of stocks being issued in the Shanghai Stock Exchange: A shares and B shares. A shares are priced in the local Renminbi yuan currency, while B shares are quoted in U.S. dollars. Initially, trading in A shares are restricted to domestic investors only while B shares are available to both domestic (since 2001) and foreign investors. However, after reforms were implemented in December 2002, foreign investors are now allowed (with limitations) to trade in A shares under the Qualified Foreign Institutional Investor (QFII) system. There is a plan to eventually merge the two types of shares. This article does not cite any references or sources. ... For alternative meanings, see bond (a disambiguation page). ... Fund may refer to Funding, or providing capital. ... Treasury Securities are bonds issued by the U.S. Treasury. ... A corporate bond is a bond issued by a corporation. ... ISO 4217 Code CNY User(s) Mainland of the Peoples Republic of China Inflation 1. ... The United States dollar is the official currency of the United States. ...


The SSE is open for trading every Monday to Friday. The morning session begins with centralized competitive pricing from 09:15 to 09:25, and continues with consecutive bidding from 09:30 to 11:30. This is followed by the afternoon consecutive bidding session, which starts from 13:00 to 15:00. The market is closed on Saturday and Sunday and other holidays announced by the SSE.


Market Data

As of end of 2006, 842 companies were listed on the SSE and the total market capitalization of SSE reached RMB 7.1612 trillion (US$915 billion). Market capitalization, or market cap, is a measurement of corporate or economic size equal to the stock price times the number of shares outstanding of a public company. ...


Trading Summary for 2006

Data updated on 29 December 2006
Stock listings Market value
(billion yuan)
Annual turnover value
(billion yuan)
A shares 832 7,111.8 5,724.5
B shares 54 49.4 57.1
Total 886 7,161.2 5,781.6

is the 363rd day of the year (364th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... ISO 4217 Code CNY User(s) Mainland of the Peoples Republic of China Inflation 1. ... Look up Turnover in Wiktionary, the free dictionary. ... ISO 4217 Code CNY User(s) Mainland of the Peoples Republic of China Inflation 1. ...

SSE's top ten largest stocks

Source: Shanghai Stock Exchange (market values in RMB/Chinese Yuan). Data arranged by market value. Updated on 15 January 2007 is the 15th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st Century. ...

  1. Industrial and Commercial Bank of China (1,397.86 billion)
  2. China Life Insurance (904.78 billion)
  3. Bank of China (887.31 billion)
  4. Sinopec (692.22 billion)
  5. China Merchants Bank (201.09 billion)
  6. Shanghai International Port (Group) (164.56 billion)
  7. Baosteel (161.81 billion)
  8. Daqin Railway (114.71 billion)
  9. CITIC Securities (107.99 billion)
  10. Shanghai Pudong Development Bank (104.30 billion)

Industrial and Commercial Bank of China (ICBC) (Simplified Chinese: ; Traditional Chinese: ; Pinyin: , more commonly just 工行 Gōngháng) is the largest of Chinas Big Four state-owned commercial banks, the other 3 banks being the Bank of China, Agricultural Bank of China, and China Construction Bank, and one of... The China Life Insurance Company Limited SEHK: 2628, NYSE: LFC, 601628. ... Bank of China Limited (BOC) SEHK: 3988 (Simplified Chinese: ; Traditional Chinese: ; pinyin: ; often abbreviated as 中行) is one of the big four state-owned commercial banks of the Peoples Republic of China. ... Sinopec, the China Petroleum and Chemical Corporation (Chinese: 中国石化, HKEX: 386; NYSE: SNP; LSE: SNP), is one of the major petroleum companies in China. ... China Merchants Bank (SEHK: 3968),(SSE: 600036),is a bank headquartered in Shenzhen, China. ... Shanghai International Port (Group) Co. ... Shanghai Baosteel Group Corporation ( SSE:600019 Chinese: ; pinyin: ), commonly referred to as Baosteel (Chinese: ; pinyin: ) is the largest Chinese iron and steel conglomerate. ... Daqin Railway is a 653km coal-transport railway in north China built during 1985 - 1992. ... China International Trust Investment Company (中國國際信托投資公司) or commonly known as CITIC is a state-owned investment company of the Peoples Republic of China, established by Rong Yiren in 1979 with the approval from Deng Xiaoping. ... Shanghai Pudong Development Bank is a bank based in Shanghai, China. ...

Indexes

Main article: SSE Composite

The SSE Composite Index is the most commonly used indicator to reflect SSE's market performance. Constituents for the SSE Composite Index are all listed stocks (A shares and B shares) at the Shanghai Stock Exchange. The Base Day for the SSE Composite Index is December 19, 1990. The Base Period is the total market capitalization of all stocks of that day. The Base Value is 100. The index was launched on July 15, 1991. At the end of 2006, the index reaches 2,675.47. Other important indexes used in the Shanghai Stock Exchanges include the SSE 50 Index and SSE 180 Index. The SSE composite is an index of all stock that trade on the Shanghai Stock Exchange. ... is the 353rd day of the year (354th in leap years) in the Gregorian calendar. ... Year 1990 (MCMXC) was a common year starting on Monday (link displays the 1990 Gregorian calendar). ... is the 196th day of the year (197th in leap years) in the Gregorian calendar. ... Year 1991 (MCMXCI) was a common year starting on Tuesday (link will display the 1991 Gregorian calendar). ...

Listing Requirements

According to the regulations of Securities Law of the People’s Republic of China and Company Law of the People’s Republic of China, limited companies applying for the listing of shares must meet the following criteria:

  • The shares must have been publicly issued following approval of the State Council Securities Management Department.
  • The company’s total share capital must not be less than RMB 50 million.
  • The company must have been in business for more than 3 years and have made profits over the last three consecutive years. This requirement also applies to former state-owned enterprises reincorporating as private or public enterprises. In the case of former state-owned enterprises re-established according to the law or founded after implementation of the law and if their issuers are large and medium state owned enterprises, it can be calculated consecutively. The number of shareholders with holdings of values reaching in excess of RMB 1,000 must not be less than 1,000 persons. Publicly offered shares must be more than 25% of the company’s total share capital. For company whose total share capital exceeds RMB 400 million, the ratio of publicly offered shares must be more than 15%.
  • The company must not have committed any major illegal activities or false accounting records in the last three years.

Other conditions stipulated by the State Council. The conditions for applications for the listing of shares by limited companies involved in high and new technology are set out separately by the State Council.


See also

The China Securities Regulatory Commission (zh: 中国证券监督管理委员会) is an institution of the State Council of the Peoples Republic of China (PRC). ... The economies of the special administrative regions of Hong Kong and Macau are separate from the rest of the Peoples Republic of China. ... The Hong Kong Stock Exchange (Traditional Chinese: , also 港交所; abbreviated as HKEX ; SEHK: 0388) is the stock exchange of Hong Kong. ... Shenzhen Stock Exchange building Shenzhen Stock Exchange building Shenzhen Stock Exchange (深圳交易所) is one of the Peoples Republic of Chinas three stock exchanges. ... Shanghai Metal Exchange (SHME), one of the national level stock exchanges of China, was established on 28 May 1992. ... The SSE composite is an index of all stock that trade on the Shanghai Stock Exchange. ...

Lists

Chinese owned companies can be defined as enterprises within mainland China, Hong Kong, Macau and the Republic of China (Taiwan): List of companies in the Peoples Republic of China List of companies in Hong Kong List of companies in Macau See also: Newspapers of China Shanghai Stock Exchange Shenzhen... This is a list of prominent companies from the Peoples Republic of China. ... This is a list of stock exchanges. ...

References

  1. ^ BusinessWeek - China's ICBC: The World's Largest IPO Ever - retrieved on March 2, 2007.
  2. ^ Thisismoney - China share turnover exceeds UK - retrieved on June 5, 2007.
  3. ^ BBC News - Share sale knocks Chinese market - retrieved on March 2, 2007.
  4. ^ MSNBC - China shares tumble as panic spreads - retrieved on June 4, 2007.

External link

  • Shanghai Stock Exchange (English)

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