The Shanghai Stock Exchange ( Chinese : 上海证券交易所 , SSE ) is a stock exchange based in the city of Shanghai , China. It is one of the three stock exchanges operating independently in mainland China , the others being the Beijing Stock Exchange and the Shenzhen Stock Exchange . The Shanghai Stock Exchange is the world's third largest stock market by market capitalization . It is also Asia's biggest stock exchange. Unlike the Hong Kong Stock Exchange , the Shanghai Stock Exchange is still not entirely open to foreign investors and often affected by the decisions of the central government, due to capital account controls exercised by the Chinese mainland authorities.
20-623: In 1891, Shanghai founded China's first exchange system. The current stock 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). The formation of the International Settlement (foreign concession areas) in Shanghai was the result of
40-550: A centralized and unified regulation of the nationwide securities market in order to ensure their lawful operation". The CSRC oversees China's nationwide centralized securities supervisory system, with the power to regulate and supervise securities issuers, as well as to investigate, and impose penalties for "illegal activities related to securities and futures". The CSRC is empowered to issue opinions or "Guideline Opinions", which are not legally binding, as guidelines for publicly traded corporations. SSE 50 Index SSE 50 Index
60-532: A few weeks later on 19 December. The Shanghai Stock Exchange was under municipal control and termed an "experimental point" until 1997. In 1997, the central government brought the exchange (as well as the Shenzhen stock exchange) under central government control and affirmed that the exchanges had a legitimate role in the socialist market economy. In 2019, the Shanghai Stock Exchange launched
80-767: Is a government agency directly under the State Council of the People's Republic of China . It is the main regulator of the securities industry in China . Indicative of the role of the CSRC, China's highest court, the Supreme People's Court –at least as of 2004–has declined to handle securities-related litigation directly, instead deferring such judgments to the CSRC. In November 2022, it stated its role to build "a capital market with Chinese characteristics". In 2023,
100-531: Is closed on Saturday and Sunday and other holidays announced by the SSE. The SSE Composite Index (also known as Shanghai 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
120-439: Is open for trading every Monday to Friday from 09:15 to 15:00. 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 14:57. The centralized competitive pricing starts again from 14:57 to 15:00 and continues with block trading from 15:00 to 15:30. The market
140-410: Is the stock index of Shanghai Stock Exchange , representing the top 50 companies by "float-adjusted" capitalization and other criteria. In order to qualify as a constituent of SSE 50 Index, it must be a constituent of SSE 180 Index , thus SSE 50 is a subindex of SSE 180 Index. SSE 50 Index is also a subset of SSE Composite Index , which included all stock. SSE 50 was regarded as a blue-chip index of
160-621: 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 . Source: Shanghai Stock Exchange (market values in RMB/Chinese Yuan). Data arranged by market value. Updated on Aug 27 2020. According to
180-541: The Communist revolution took place. 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, the Shanghai Stock Exchange was re-established and operations began
200-748: The Treaty of Nanking of 1842 (which ended the First Opium War ) and subsequent agreements between the Chinese and foreign governments were 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 shares list appeared in June 1866 and by then Shanghai's International Settlement had developed
220-762: The Association applied for registration in Hong Kong under the provision of the Companies ordinance and was renamed as the "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. 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
SECTION 10
#1732765755010240-672: The CSRC was upgraded to a government agency directly under the State Council. Additionally, it was granted responsibility auditing corporate bond issuances from the National Development and Reform Commission . In late 2023 and early 2024, the CSRC instructed some institutional investors not to sell stocks in order to stabilize share prices. China's first Securities Law was passed December 1998, and became effective July 1, 1999. The nation's first comprehensive securities legislation, it grants CSRC "authority to implement
260-563: The Qualified Foreign Institutional Investor (QFII) program which was officially launched in 2003. Currently, a total of 98 foreign institutional investors have been approved to buy and sell A shares under the QFII program. Quotas under the QFII program were US$ 30 billion and increased to US$ 80 billion as of April, 2012. There has been a plan to eventually merge the two types of shares in the future. The SSE
280-517: The STAR Market, featuring only technology-related companies, as a rival to the NASDAQ . 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
300-583: 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 is 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
320-878: The State Council. The SSE is housed at the Shanghai Securities Exchange Building since 1997. The Shanghai Stock Exchange owns a 40% stake in the Pakistan Stock Exchange (PSX) . PSX is integrated with China's stock market through the China Connect Interface, allowing Chinese investors to more easily enter Pakistan's stock markets. The Shanghai Stock Exchange is a part owner of the Astana International Financial Centre . China Securities Regulatory Commission The China Securities Regulatory Commission ( CSRC )
340-423: 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 which had treaties with China, to establish factories in Shanghai and other treaty ports. Rubber plantations became the staple of stock trading beginning in
360-455: 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). In the 1880s and 1890s, during the boom in mining shares, foreign businessmen founded the "Shanghai Sharebrokers' Association" headquartered in Shanghai as China's first stock exchange. In 1904,
380-464: 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: 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
400-636: The second decade of the 20th century. 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, the Shanghai Stock Exchange resumed its operations before closing again 3 years later in 1949, after
#9990