All About Shanghai Stock Exchange…
Unlike the US stock market, the Chinese stock market does not indicate the health of the Chinese economy. The stake is small, with only a few wealthy investors owning 80 percent of the tradable shares. A healthy stock market finances innovative small businesses that can boost China’s economic growth.
The Shanghai Stock Exchange has a market capitalization of $6.5 trillion and is the largest exchange in the world. However, the total value of shares traded on the Chinese stock exchange is less than one-third of China’s economic output in terms of gross domestic product.
As a result, Chinese funds focus on small-cap stocks, income-producing securities, and other specialties. The Shanghai Stock Exchange lists companies that are among the largest in the world, and it also lists stocks, bonds, indices, and derivatives. The SHANGHAI Stock Exchange Composite Index is composed of all stocks traded on the stock exchange and is used as an indicator of Chinese market development.
There are various types of SSE and SZSE listed securities (shares) of mainland Chinese companies traded on the Chinese stock exchange, including the Shanghai-Shenzhen Stock Connect. The Shanghai-Shenzhen Stock Connect comprises the components of SSE 180 Index, SSE 380 Index and the SSE Shares corresponding to H Shares on the H Stock List of the Chinese Stock Exchange. It also includes the component indices of the SzSE Small and MidCap Innovation Index, which have a market capitalization of no less than RMB 6 billion as well as H-shares.
Hong Kong China Stock Connect (China Connect) is a reciprocal market access programme through which Hong Kong international investors can trade Hong Kong shares listed on the Shanghai Stock Exchange (SSE), the Shenzhen Stock Exchange (SZSE) and the Hong Kong Stock Exchange (SEHK) through their existing clearing house. We will give a brief background, explain how to trade on any stock exchange and provide advice on how to access Shanghai, Shenzhen and Hong Kong exchanges.
Stocks, bonds, warrants, REITs, mutual funds, ETFs and shares traded are traded on both exchanges. Stock Connect was introduced in 2014, allowing Chinese mainland investors to buy companies listed in Hong Kong and foreigners to buy shares listed on mainland mainland.
There are currently more than 400 shares listed in Hong Kong associated with China, mainly H-shares and red-chip shares. Companies operating in various industries on the mainland are not covered by the Hong Kong stock market. SSE maintains a database on the sustainability activities of exchange members and is a member of the World Federation of Stock Exchanges.
SSE was re-established on 26 November 1990 and has been in operation since 19 December 1990. SSE is the fourth largest stock market in the world with a market capitalisation of $trillion as of November 2018. The SSE index series includes the Shanghai SSE 180 Index, Shanghai SSE 50 Index, Shanghai Composite Index, A-Share Index, B-Share Index, Classified Index, Bond Index, Fund Index and others.
On November 26, 1990 the Shanghai Stock Exchange was re-established and operation started a few weeks later, on 19 December. Stock splits have been a historic problem since the founding of the Shanghai stock market. In 2019, SSE launched Star Market, which includes technology-related companies and is a rival to Nasdaq.
The distinction between tradable and non-tradable shares led to evasion of interests among shareholders, distorted the price mechanism of the capital market and restricted the standardisation of listed companies on the market. Faced with the changing situation, SSE, under the leadership of CSR, initiated the share-splitting reform in May 2005 in order to standardise the shares of all listed companies under a reasonable plan. By February 27, 2006 a total of 365 SSE companies had completed or participated in the reform, representing 44.68% of listed companies and 52.53% of the total market value.
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https://www.thatsmags.com/china/post/31781/explainer-what-to-know-about-china-s-major-stock-exchanges
https://www.thebalance.com/china-stock-market-shanghai-shenzhen-hong-kong-3305480
https://sseinitiative.org/stock-exchange/sse/
https://smartasset.com/investing/shanghai-stock-exchange
https://tradingeconomics.com/china/stock-market
https://www.ifec.org.hk/web/en/investment/investment-products/stock/stockconnect/all-about-the-shanghai-and-shenzhen-stock-markets.page
https://www.encyclopedia.com/books/international-magazines/shanghai-securities-market
https://ibkr.info/article/2267
https://en.wikipedia.org/wiki/Shanghai_Stock_Exchange
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