Shanghai Stock Exchange

Shanghai Stock Exchange, listed on September 10, 2005

The Shanghai Stock Exchange ( Ch.上海證券交易所/上海证券交易所Pinyin Shànghǎi Zhengquan Jiāoyìsuǒ, short or上交所上證所/上证所; . Tightly Shanghai Stock Exchange ) was founded on 26. November 1990 as a stock exchange in Shanghai in the Special Economic Zone Pudong and went into operation on December 19, 1990. Today it is the most important market on the Chinese mainland . In February 2006, 833 public companies and 877 shares were listed, by July 2013 the number of companies had risen to 954 and the number of shares to 2,519.

In August 2017, the total market capitalization of all companies listed on the Shanghai Stock Exchange was $ 4.7 trillion , making it the world's fourth largest exchange by market capitalization.

history

The birthplace of securities trading in China is Shanghai, with roots tracing back to 1860. In 1891 the "Shanghai Stock Traders Association" was founded, which is considered to be the origin of Chinese stock trading. In the 1930s, the Shanghai financial center had established itself as the largest financial center in the Far East. At that time, Chinese and foreign investors could trade stocks, government bonds and derivatives. The soaring of the Shanghai Stock Exchange was abruptly interrupted by the takeover of Mao Zedong, who banned all stock trading. Only under the leadership of Deng Xiaoping could work on the stock exchange be resumed. In 1981, trading in government bonds resumed, and in 1984 trading in stocks and corporate bonds. The trading centers were mainly Shanghai and a few other Chinese cities. On November 26, 1990, the Shanghai Stock Exchange (SSE) made its debut on the international financial markets.

Course development

The SSE is a not-for-profit organization and is subject to the China Securities Regulatory Commission (CSRC).

After only a few years, the financial center in Shanghai has developed into the leading stock exchange in “Mainland China”. Most of the companies and stocks are listed in Shanghai, the SSE has the largest market capitalization, is the leader in stock turnover, market value and turnover in government bonds, etc.

The year 2007 ended very successfully for the Shanghai Stock Exchange with over 71.3 million investors, 860 listed companies and a market capitalization of over 26.98 trillion RMB. In the same year, over RMB 661.6 billion was raised through new issues. A large number of companies from various key industries, such as construction and the high-tech sectors, have not only raised capital for themselves, but have also been able to significantly improve their reputation and operations by listing on the SSE.

The SSE Composite Index reached on 26 February 2007 for the first time more than 3,000 points. The following day it fell by 8.84 percent to 2,771.79 points. On August 23, 2007, the index passed the 5000 mark for the first time.

The rapid development of the Shanghai Composite Index since 2006 is already the signal of overheating for many stock market experts. The "bubble" is z. Partly driven by many private investors who invest even the smallest amounts (often financed by loans) in the hope of getting into big business in time. In the streets of the cities you can see the crowd in front of the banks' price boards. In the real economy, only a small part of the price surge is justified, but the tight market for many securities is what creates the surge. State authorities warn small investors against carelessness, so far without effect.

On October 16, 2007, the Composite Index reached 6,092 points, the highest level in its history. By mid-June 2008, the index had since fallen by more than 50% to below 3,000 points, and by mid-September 2008 to below 2000 points.

The market values of Chinese companies can only be read with reservations, however, as the shares are predominantly in domestic hands and the Shanghai stock exchange, on the basis of which the Chinese market values are calculated, is largely closed to foreign investors. Foreigners currently mainly trade Chinese stocks on the Hong Kong stock exchange. The People's Republic of China will open shares trading on the Shanghai Stock Exchange to foreign investors on November 17, 2014.

Stock indices

The SSE Composite Index started on July 15, 1991 and comprises all stocks on the Shanghai Stock Exchange. In addition, there are numerous stock indices, similar to other stock exchanges, such as the SSE 50 for the 50 largest companies, the SSE 180 for the 180 largest, and for various industries.