An overview of the Shanghai Stock Exchange (SSE). How to invest in the Chinese stock market China Index exchange
the main index of the Shanghai Stock Exchange (China), calculated on a daily basis based on the stock prices of all companies listed on the A and B quotation lists of the exchange
Definition and concept of the SSE Composite index, history of the Shanghai Stock Exchange SSE Composite index, composition of the SSE Composite index, calculation and factors of the SSE Composite index, historical data and dynamics of the SSE Composite index
The SSE Composite Index is, the definition
The SSE Composite Index is one of the most important indices in Asia. The SSE Composite Index has been calculated by the Shanghai Stock Exchange since 1990. The SSE Composite index includes shares of all companies listed on the Shanghai Stock Exchange in lists A and B. Conventionally, all these companies can be divided into several main sectors: finance, materials, manufacturing, energy, food, healthcare and telecommunications. The undisputed leader is the financial sector, followed by companies in the manufacturing sector. The SSE Composite Index is an excellent barometer of the Chinese economy, as calculated based on daily stock prices.
The SSE Composite Index is weighted by the capitalization of the Shanghai Stock Exchange stock indices, it has been calculated since December 1990, the calculation base is 100 points. The calculation takes into account the daily values of the prices of all shares traded in quotation lists A and B of the Shanghai Stock Exchange. The SSE Composite is an important statistical indicator of the health of the Chinese stock market, widely used by both Chinese and foreign investors.
The SSE Composite Index is
The SSE Composite Index is stock index of the Shanghai Stock Exchange. Its calculation has been carried out since December 1990, the base value is 100 points. The calculation takes into account the daily values of the prices of all shares traded in quotation lists A and B of the Shanghai Stock Exchange.
Asian stock exchanges
The SSE Composite Index is the main index of the Shanghai Stock Exchange, calculated from the daily values of the prices of all shares traded in the A and B quotation lists of the exchange.
The SSE Composite Index is stock index of the Shanghai Stock Exchange. Its calculation has been carried out since December 1990, the base value is 100 points. The calculation takes into account the daily values of the prices of all shares traded in quotation lists A and B of the Shanghai Stock Exchange.
The SSE Composite Index is China's main stock index, which has been calculated since its opening in December 1990. The calculation takes into account the daily values of the prices of all shares traded in quotation lists A and B of the Shanghai Stock Exchange. The SSE Composite Index, along with the Korean KOSPI (Korea Composite Stock Price Index) and the Japanese Nikkei 225 Stock Average and Tokyo Stock Price Index, are among the four most significant stock indices in the Asian region, reflecting the current state of the Asian stock market.
The SSE Composite Index is part of the SSE Indices "family" of stock indices of the Shanghai Stock Exchange, which also includes the SSE 180 Index, SSE 50 Index, SSE Dividend Index, SSE New Composite Index, SSE Composite Index, Sector Indices, SSE Fund Index, SSE Government Bond Index and SSE Corporate Bond Index.
The SSE Composite Index is an index of all stocks traded on the Shanghai Stock Exchange. This makes it possible to assess the movements of the entire Chinese stock market. Unlike many similar indices, the SSE Composite is based solely on current stock prices, not a weighted price based on past performance.
The SSE Composite Index is a capitalization-weighted index of all stocks traded on the Shanghai Stock Exchange. The index has been calculated since July 15, 1991 with a base value of 100.
What is the SSE Composite Index?
The stock index is a composite indicator of the change in prices of a certain group of securities, the so-called "index basket". Indices are used to assess the behavior of a whole group of securities - a particular specific sector or the entire market as a whole. The dynamic values of the indices are important, since it is the change in the index over time that provides the basis for assessing the general direction of the market movement, even if in a particular selected group the share prices change in different directions. The absolute values of the indices, as a rule, are not of interest.
Analysis of stock indices
The Shanghai Stock Exchange (SSE) is one of the three stock exchanges in China, the second in terms of trading turnover after the Shenzhen Stock Exchange and the second in terms of capitalization after the Hong Kong Stock Exchange. Following the results of 9 months of 2013, with a market capitalization of $ 2.7 trillion and an average monthly turnover of about $ 0.3 trillion. dollars, the exchange ranked 7th in the world in terms of capitalization, and 5th in terms of turnover.
For the first time, trading in shares in Shanghai began in 1866, but after the communists came to power, the exchange was closed and reopened only in 1990. At present, unlike the Hong Kong exchange, the Shanghai exchange is still not fully open to foreign investors: all shares listed on the stock exchange are divided into two types, A and B, while foreigners can trade type B shares without restrictions, and type A shares from foreigners can only be bought by large institutional investors who have received a license of a "qualified foreign institutional investor", and only in within the quotas allocated to them.
The main stock indexes are SSE Composite Index and SSE 50. SSE Composite Index is an index of all stocks (A and B) that are traded on the Shanghai Stock Exchange, SSE 50 is an index of 50 blue-chip stocks. Stock index trading is becoming more and more popular among traders who operate online. And this is explained quite simply - this type of trading has a number of undeniable advantages that can be useful in the implementation of many trading strategies.
SSE Composite Index is weighted by the capitalization of the Shanghai Stock Exchange stock indices, it has been calculated since December 1990, the calculation base is 100 points. The calculation takes into account the daily values of the prices of all shares traded in quotation lists A and B of the Shanghai Stock Exchange. SSE Composite is an important statistical indicator of the state of the stock market in China, widely used by both Chinese and foreign investors.
What is an Index?
History of the SSE Composite Index
The SSE Composite (Shanghai Composite) index is the most commonly used indicator on the Shanghai Stock Exchange. It reflects the market performance of the SSE sector. Components for SSE Composite Index is all shares (B-shares) listed on the Shanghai Stock Exchange.
First SSE Composite Index Output
The index was launched on July 15, 1991. At the end of 2006 the indicator reaches 2,675.47 points. Other important indicators used by the Shanghai Stock Exchange are the SSE 50 and SSE 180 Index.
SSE Composite Index Structure
The index includes the following large-cap companies: PetroChina (RMB 3,656.20 bn), Industrial and Commercial Bank of China (RMB 1,417.93 bn), Sinopec (RMB 961.42 bn), Bank of China (RMB 894.42 bn), China Shenhua Energy Company ( 824.22 billion yuan), China Life (667.39 billion yuan), China Merchants Bank (352.74 billion yuan), Ping An Insurance (272.53 billion yuan), Bank of Communications (269.41 billion yuan), China Pacific Insurance (256.64 billion yuan).
How the stock market works
SSE Composite Index Black Tuesday
February 27, 2007 was named "Black Tuesday" for the PRC stock market. The Shanghai Composite Index lost almost 9 percent in the session, the highest in the last 10 years. The fall was due to fears that the Chinese stock market is operating on speculative measures. In early 2007, the PRC stock market became a lucrative means of earning money for the middle class. The number of registered brokers has exceeded 80 million. The market has grown in just a few years. Stocks boosted the growth of the Chinese economy.
However, on Tuesday, the words of the Vice Speaker of the PRC Parliament Zheng Xiwei became key. In January, he warned of a stock bubble. By Tuesday evening, the index closed trading at around 2771.8. The panic spawned a violent fall, after which the policy was changed. Black Tuesday had a serious impact on other global stock markets as well. Almost all of the world's major indices fell that day.
The SSE Composite Index today
Shanghai Stock Exchange and SSE Composite
The Shanghai Stock Exchange (SSE) is a stock exchange based in Shanghai, China. It is one of two independent stock exchanges in the People's Republic of China. The Shanghai Stock Exchange is the sixth largest stock exchange in the world by market capitalization of $ 2,300 billion as of December 2011. Unlike the Hong Kong Stock Exchange, the Shanghai Stock Exchange is still not fully open to foreign investors due to tight control by the PRC authorities on capital transactions from abroad.
Life in china
The exchange is a member of the Federation of Asia and Oceania Stock Exchanges. In addition to SSE, the Shenzhen Stock Exchange operates in the PRC. This exchange was re-established on November 26, 1990, and has been in operation since December 19 of that year. It is a non-profit organization directly administered by the China Securities Regulatory Commission (CSRC).
The formation of the International Settlements (foreign concession areas) in Shanghai was the result of the Nanjing Treaty of 1842, and subsequent agreements between Chinese and foreign governments played a key role in the development of foreign trade in China and the overseas public in Shanghai. The securities trading market in Shanghai began in the late 1860s. The first list of stocks appeared in June 1866, by which time Shanghai International Settlements had developed conditions conducive to the emergence of a market: multiple banks, a legal framework for joint stock companies, and an interest in diversifying among established trading houses (although the trading houses themselves remained partners).
In 1891, during the mining boom, foreign businessmen founded the Shanghai Sharebrokers Association, headquartered in Shanghai, China's first stock exchange. about companies and was renamed the "Shanghai Stock Exchange" (Shanghai Stock Exchange). Offers for placement of securities came mainly from local companies. In the early days, banks place private shares, but by 1880 the exchange went to the wide market.
After the Shimonoseki Treaty in 1895 between the Japanese Empire and the Qing Empire, after the defeat of China in the Sino-Japanese War of 1894-1895, China began to be divided territorially. Foreign enterprises were established in China. Rubber plantations became a staple of early trading in the second decade of the 20th century. Later, in 1920 and 1921, Shanghai Securities & Commodities Exchange and Shanghai Chinese Merchant Exchange began operations. The merger of sites took place in 1929, and the merged markets thereafter operated as the "Shanghai Stock Exchange".
Shanghai Stock Exchange
By 1930, Shanghai was recognized as a financial center in the Far East, where Chinese and foreign investors can trade stocks, futures, and transact. Operations on the Shanghai Stock Exchange came to an abrupt halt during World War II. On December 8, 1941, the exchange actually stopped working. " In 1946, the Shanghai Stock Exchange resumed its activities, but only for 3 years. In 1949, after the Communist Revolution, work was stopped again.
After the end of the Cultural Revolution, when Deng Xiaoping came to power, China was reopened to the outside world in 1978. In the 1980s, China's securities market developed in tandem with the country's economic reform, following the principle of opening up and developing a socialist market economy. On November 26, 1990, the Shanghai Stock Exchange was restored and began operations a few weeks later - on December 19 of the same year.
The Shanghai Stock Exchange is open for trading from Monday to Friday. The morning session starts with pre-trades, which run from 09:15 am to 9:25 am, and spills over into the main morning session from 09:30 am to 11:30 am. From 11:30 to 13:00 there is a lunch break at the stock exchange. The lunch session lasts from 1:00 p.m. to 3:00 p.m. The market is closed on Saturday, Sunday and the corresponding holidays, namely: New Year, Chinese New Year, Qingming, Labor Day, Autumn Festival, Duanwu Festival.
The securities included in the SSE are divided into three main categories of stocks, bonds, and stock indicators. The bonds traded on the SSE include Treasury bonds (T-bond), corporate bonds, convertible bonds and corporate bonds. The SSE T bond market is the most active in China. There are two types of issued shares in the Shanghai Stock Exchange: "A" shares and "B" shares. A-shares are securities that are priced in local currency (RMB), while B-shares are quoted in US dollars.
Initially, A-shares were available only to domestic investors, while Class B shares are available both for the domestic market (since 2001) and for foreign traders. However, after the reforms were implemented in December 2002, foreign investors are now allowed (with restrictions) to trade in the two classes of shares under a special program that was officially launched in 2003. Currently, a total of 98 foreign institutional investors have been approved for purchase / sale of shares under the QFII program. The quota under the QFII program is currently US $ 30 billion. In the future, the program implies a merger of two classes of shares.
The following companies are listed on the Shanghai Stock Exchange: Agricultural Bank of China, Air China, Aluminum Corporation of China, Bank of Communications, Changhong, China Communications Construction, China Railway Construction, China Southern Airlines, China Unicom, Hainan Airlines, Industrial and Commercial Bank of China, SAIC Motor, Shanghai Airlines, Yanzhou Coal Mining, Qingdao (brewery).
The work of large companies in China
Composition of the SSE Composite Index
Shanghai Stock Exchange Composite Index, abbreviated SSE Composite Index is a capitalization-weighted index of all stocks traded on the Shanghai Stock Exchange. The index has been calculated since July 15, 1991 with a base value of 100. The SSE Composite Index is a good way to get an overview of the performance of companies listed on the Shanghai Stock Exchange.
The index includes companies from 4 sectors of the economy: finance, trade and manufacturing, land ownership, utilities. Over time, it is likely that the SSE Composite Index will reflect the health of the Chinese economy as a whole, as there are still a large number of large state-owned firms that have not yet received publicity in such sectors of the economy as energy, banking and healthcare. The top 50 companies by capitalization of the Shanghai Stock Exchange, included in the SSE Composite Index, are listed below.
Features of the national economy of China
Air China
Air China Ltd. China's government-owned airline and China's second airline after China Southern Airlines. It is the flagship carrier and the only airline to carry the Chinese flag on its aircraft. The logo features a phoenix in the form of the acronym VIP and the name "Air China" in both English and Chinese, with the inscription in Chinese being signed by Deng Xiaoping. Air China's main hubs are Beijing Capital International Airport, Shuangliu International Airport and Shanghai Pudong International Airport, while the main destination airports are Xiaoshan International Airport, Chongqing Jiangbei International Airport, Binhai International Airport and Bite International Airport. Air China currently serves over 120 destinations; most of the flights go through the hub in Beijing.
The airline carried 33.97 million passengers in 2006, with a load factor of 75.9%. In the same year, the airline's profit was 2.7 billion yuan, operating income was 44.9 billion yuan, and general expenses were 42.4 billion yuan. As of June 20, 2007, Air China was ranked 461 in the list of the 500 best brands in the world. Air China operates in four segments: airline - air transportation of passengers and cargo, engineering service - aircraft modernization, repair and maintenance, terminal - ground services, including check-in, boarding, VIP-lounge services, hotel services, handling luggage, unloading and loading services, cabin cleaning, transit services, other services - catering and other services related to the operation of the airline.
Aluminum Corporation
Aluminum Corporation of China Limited is the only and largest aluminum company in the People's Republic of China. It is the second largest alumina producer and the third largest primary aluminum producer. Founded on September 10, 2001 in Beijing. Xiong Weiping is the chairman of the board of directors and chief executive officer of the company. President and CEO - Luo Jianchuan.
The company's 2009 revenue was RMB 70.268 billion, down RMB 4.643 billion or 8.42% from 2008. Despite a significant increase in prices for aluminum in 2009, the average annual prices for it were lower than in 2008, which was reflected in the total revenue of the company. As of March 31, 2010, the company had 107,831 employees.
Bank of China
Bank of China ltd is the oldest Chinese bank. The headquarters is in Beijing. The second largest bank in China, Bank of China (BoC), held an IPO on the Hong Kong Stock Exchange in June 2006, earning more than 8 billion euros. The controlling stake in the bank belongs to the government of the country. Among the major shareholders of Bank of China are the state investment fund Temasek from Singapore, Asian Development Bank, Swiss UBS and British Royal Bank of Scotland. Market capitalization of Bank of China at the end of trading on July 5, 2006 amounted to $ 87.6 billion (the largest company in this indicator in China).
At the moment, Bank of China is a commercial bank, one of the five largest state-owned banks in the country and ranks second in terms of assets after the Industrial & Commercial Bank of China. The bank is also one of the twenty largest banks in the world. It has more than 13 thousand branches in China and 550 representations in 25 other countries. The main business is corporate and retail lending; also deals with investment banking, insurance and servicing of plastic cards. Bank of China has equity capital of almost $ 40 billion. According to the results of the first half of 2007, Bank of China increased its net profit by 52%, to 29.54 billion yuan (2.9 billion euros).
Bank of Communications
Bank of Communications (BoCom) is the fifth largest commercial bank in the PRC, 18.6% of the shares are held by HSBC Holdings Plc. In 2006, BoCom's revenue was 12.27 billion yuan ($ 1.58 billion), up 32.7% from 2005. As of March 2007, the bank's assets reached 1.71 trillion yuan ($ 220 billion). The bank conducted its initial public offering in 2005 on the Hong Kong Stock Exchange. In Shanghai, 3.19 billion class A shares (6.5% of the bank's market value) were placed for 25.2 billion yuan (3.3 billion dollars).
Baoshan Iron & Steel
Baosteel Group Corporation (hereinafter referred to as Baosteel) is a typical manufacturing enterprise established and developed against the backdrop of reforms in China. Its construction began on December 23, 1978 in the Baoshan Industrial District near Shanghai, China's largest city. After more than 30 years of development, Baosteel has become the most competitive steel manufacturer in China with a high level of modernization.
The main activity of Baosteel is the production of high-quality steel at a high technological level and with high added value. Baosteel's products are primarily carbon, stainless and special steels. In 2011, the company recorded a record steel production of 44,270,000 tons, with a total profit of 18.15 billion yuan. Thus, Baosteel ranked second among the world's metallurgical enterprises.
Beijing Gehua CATV Network
Beijing Gehua CATV Network Co. Ltd. builds, operates and maintains cable television networks. The company also offers advertising and information services.
Beijing North Star
Beijing North Star Company Limited builds, rents and invests in real estate. The company operates a chain of shopping centers, hotels and restaurants. The company also provides property management services.
China Citic Bank
ChinaCITICBank is one of the ten largest banks in China, formerly CITIC Industrial Bank. This bank was founded in 1987 and today has about 400 branches in the Middle Kingdom. China CITIC Bank is a division of the CITIC Group - which is an investment company formed in 1979. CITIC Group has 44 divisions located in Hong Kong, New Zealand, USA, Australia, Canada, in addition, there are representative offices in Tokyo, New York, Kazakhstan. According to the report, at the end of 2009, the company's assets amounted to 2.154 trillion. yuan, profit for the same year was 28.2 billion yuan.
ChinaCITICBank is an industrial bank headquartered in Beijing. In 2006, Banco Bilbao Vizcaya Argentaria SA acquired a 5% stake in ChinaCITICBank. The deal amounted to 501 million euros. There are more than a dozen joint-stock banks in China, the largest of which is China CITIC Bank. The controlling stake in this bank is held by the state.
China Life Insurance
China Life Insurance is is a Chinese insurance company whose business is focused on individual and group life and health insurance.
China Merchants Bank
China Merchants Group is a Chinese government diversified conglomerate based in Hong Kong (headquartered in Central County). In 1872, the Chinese government founded the China Merchants Steam Navigation Company, the country's first modern transportation company that did not attract foreign capital. The main interests of China Merchants Group are port facilities, logistics, shipping, real estate, financial services, containers, transport equipment and paints.
China Merchants Energy
China Merchants Energy Shipping Co. Ltd. is engaged in the shipping of crude oil, iron ore, liquefied gas and coal.
China Minsheng Banking
China Minsheng Bank is China's first commercial bank, founded in 1996 in Beijing and owned by non-government agencies. To reach operations around the world with its cash flows, China Minsheng Banking Corporation (CMBC) needed a banking solution that would integrate ATMs, user terminals and specialized applications. The bank deployed an end-to-end solution based on Windows Embedded operating systems that connected 30,000 terminals and 4,000 ATMs to the Beijing data center. The smart system gave CMBC more flexibility, improved system manageability, increased customer satisfaction, and also reduced total cost of ownership.
China Minsheng Banking Corporation plays an important role in the movement of the country's financial flows. Recently, the corporation has been actively seeking reforms in the banking sector. Today, the rapidly growing bank has 200 offices in China and over 700 in various countries around the world. Like most financial institutions, CMBC serves customers through ATMs and terminals. In addition, CMBC would also like to introduce self-service kiosks.
China Petroleum & Chemical
China Petroleum & Chemical is China Petroleum and Chemical Corporation, an integrated energy and chemical company of the PRC. The country's second largest oil and gas company (after PetroChina). The main activities of Sinopec: exploration and development of oil and gas fields, sale of oil and natural gas; oil refining, sale of oil products; production and sale of petrochemical products. Registered on February 25, 2000. The assets of the China Petrochemical Corporation were transferred to the company in order to carry out borrowings on the public market.
The original owner of 100% of the shares (67.12 billion shares) was the state-owned China Petrochemical Corporation. Sinopec is China's largest oil importer. Its production is estimated at 38 million tons of oil per year. The main owner of Sinopec is China Petrochemical Corporation, founded in 1998, owned by the state. Its shares were not listed on the stock exchange due to the established restrictions, but during 2007-2009 (by October 12, 2009) all restrictions on the sale of these shares were lifted.
China Shipping Development
China Shipping Development Company is Chinese shipping company. Founded on July 1, 1997 in Shanghai (PRC). The company is one of the central state enterprises (Central SOE) of China and is managed by the State Property Control and Administration Committee of China (SASAC). The company is a super-large conglomerate of transport companies operating on different continents. Under the auspices of China Shipping, there are five specialized commercial fleets - tankers, bulk carriers, container ships, passenger ships and special cargo ships. In total, there are over 440 vessels with a total deadweight of over 15 million tons and an annual traffic volume of over 270 million tons.
China Shipping operates in various areas of integrated logistics, transport and terminal operations, finance and investment, labor management, procurement and commerce, information technology. The company includes: head office; 24 subsidiaries with 100% participation; 3 listed subsidiaries; 3 joint ventures. Outside of China, more than 260 branches and subsidiaries have been established.
China United Telecommunications Corp
China United Telecommunications Corporation is a large Chinese company specializing in the construction of transport infrastructure. In the rating of the largest companies in the world Fortune Global 500 (2009), the company took 341 place, moving up 81 positions compared to 2008. The company was founded in 2005 through the merger of China Harbor Engineering and China Road and Bridge Group.
China Yangtze Power
China Yangtze Power Co., Ltd. - it China's largest publicly owned hydropower corporation. It produces energy that is supplied to Central China, East China, Guangdong Province and Chongqing City. It operates a cascade of hydropower plants on the Yangtze River, including the world's largest hydroelectric power station, the Three Gorges. The company is controlled by the state-owned Three Gorges Corporation and is listed on the Shanghai Stock Exchange. In October 2010, she signed an agreement with the largest Russian energy company EuroSibEnergo on cooperation in the field of hydropower.
Citic Securities
CITIC Securities Co. Ltd. provides brokerage, underwriting, investment banking, asset management and investment consulting.
Daqin Railway
Daqin Railway Co. Ltd. provides coal transportation services in North China. She also works in the passenger transportation business.
Founder Technology
Founder Technology Group Company Limited (Founder Technology) is one of the most influential high-tech companies in China. On May 11, 1998, the Founder Group was founded, which, thanks to its professionalism and high production rates, has won the trust and support of investors. In 2002, Founder Group was ranked in the “Shanghai 180 index” and in 2004 in the “Shanghai 50 index”, becoming a model company in the market. The company continued to maintain a healthy trend in business development, expanded its boundaries and grew confidently. In 2007, having retained its position in the market, took the leadership in the IT market of the country.
Founder Technology strives to be the leading integrator of IT services in China, its main activities are distribution and sale of goods, support and development. Already, Founder Technology has many years of experience in the development of components for IT equipment, has the most advanced production technologies and the latest equipment, impeccable quality management and warranty system, great potential in research and development. Founder Technology has its own production lines for the production of digital technology and accessories for personal computers.
GD Power Development
GD Power Development is power generating company of China (Godian province). The company is engaged in the production and sale of electricity and heat, as well as the operation of power systems. The company also invests in the development and creation of new energy and environmental projects.
Guangshen Railway
Guangshen Railway Company Limited provides rail passenger, freight, railway construction and technical services. The company also sells food, beverages and merchandise on trains and at train stations.
Handan Iron & Steel
The company is one of the ten largest metallurgical companies in China. It produces steel and iron products, coke and chemical products. Handan Steel is a state-owned company that produces more than 8 million tons of products per year. In 2006. the company produced about 5.14 million tons of iron, 6.4 million tons of steel and 5.47 million tons of steel products.
Hua Xia Bank
Huaxia Bank Co. Ltd. provides a full range of commercial banking services, including deposits, loans, international and domestic settlements, settlements by letters of credit, bank guarantees.
Huaneng Power
Huaneng Power International Inc. builds and operates coal-fired power plants throughout China. A corporation called Huaneng Power International, based in the Middle Kingdom, and which is an autonomous and independent division of China's largest energy producer, showed an increase in its own net income in the last 2012 more than 4 times due to the increase in the cost of electricity tariffs, as well as a decrease some expenses.
Interestingly, despite the seemingly large income, the business results of the Chinese company Huaneng Power International still turned out to be much worse than the indicators that stock market experts and economic analysts expected. For example, the corporation's revenue increased from 1.3 billion yuan to 5.72 billion yuan, but at the same time failed to meet the average expectations of financial analysts expecting an income of 6.2 billion. yuan.
Industrial and Commercial Bank of China
Industrial and Commercial Bank of China is the largest Chinese commercial bank. It is included in the "Big Four" of the largest state-owned banks in China (along with Bank of China, Agricultural Bank of China and China Construction Bank). Created in 1984. The bank's shares are held by the Chinese government. At the end of October 2006, the bank conducted an initial public offering and raised a record $ 22 billion (the largest IPO in world history), placing 48.4 billion shares (18% of the total). Of these, 12% on the Hong Kong Stock Exchange and 6% on the Shanghai Stock Exchange. The bank's capitalization as of October 20, 2007 was $ 319 billion. The chairman of the board of directors and chief executive officer of the bank is Jiang Jianqing.
ICBC controls a fifth of China's banking sector. As of the end of 2009, 387 thousand people worked in 16 394 branches of the bank. The bank provided financial services to more than 3.61 million corporate and 216 million individual clients. The bank also conducts operations in Hong Kong under the ICBC Asia brand. The bank's assets at the end of 2005 amounted to $ 799.8 billion (21st place in the world in the rating of The Banker magazine). ICBC's 2005 revenue was $ 21.8 billion, pre-tax profit was $ 7.36 billion, and net income was $ 4.24 billion.
Industrial Bank (Industrial Bank)
Industrial Bank Company Ltd. provides a wide range of banking services. The bank's business includes residential mortgages, loans, deposits, asset management, debit and credit cards.
Inner Mongolia BaoTou Steel Union
Inner Mongolian Baotou Steel Union Co. Ltd. smelts ferrous metals and manufactures products from them. The company's products include slabs, seamless metal pipes, heavy-wall pipes, wire rod, steel pipes and other related products.
Inner Mongolia Yili Industrial Group
Inner Mongolia Yili Industrial Group Co., Ltd. was founded in 1992 in the city of Hohhot. The company employs over 1000 workers and specialists. Now it is a modern company with extensive experience that we have accumulated over the years. The company produces vacuum-packed milk, fruit yoghurts, breakfast cereals, flour, grain, dairy drinks with fruit juice, and children's dairy products.
Jiangxi Copper
Jiangxi Copper Company Ltd. works in the field of copper mining and processing. The company is engaged in the production of piprite concentrates, sulfuric acid, gold and silver. Jiangxi Copper, China's largest copper producer, doubled its 1Q08 net income in the wake of rising sales and price levels. Net income rose 127.6% from a year earlier to 1.59 billion yuan ($ 235 million) in the March quarter. Copper prices on the LME rose to $ 10,190 per tonne in February. Last year, the company produced 900,000 tonnes of copper cathodes, with no production reported for the current quarter.
Jiangxi Ganyue
Jiangxi Ganyue Expressway Co. Ltd. operates toll roads, bridges and other transport facilities.
Kweichow moutai
Kweichow Moutai, the largest alcohol producer in China, has the best result in the last 10 years on the Shanghai Stock Exchange. Now the company's capitalization has already reached $ 41 billion. This result is explained by both economic growth in the country and the huge popularity of products, in particular, strong Maotai liqueur. The market for such liqueurs in China should reach $ 34 billion by 2016.
It is worth noting that companies that produce goods for consumer demand over the past 10 years have shown growth rates twice better than the Chinese market on average.
Long March Launch Vehicle Technology
Long March Launch Vehicle Technology is China's largest aerospace company. Based in Beijing.
Offshore Oil
Offshore Oil Engineering Co. Ltd. provides a range of engineering services, including design, construction, installation, repair and maintenance of offshore oil platforms. The main activities of the company include oil and gas exploration, subsea pipelines, equipment installation, testing and maintenance, and steel construction.
Orient Group
Orient Group Incorporation sells building materials and furnishings. The company also supplies alloys and contacts for electrical appliances, as well as invests in port operations and real estate development.
Ping An Insurance
Ping An Insurance is Chinese insurance company. The core of the company's business is life insurance, including individual and group insurance, health insurance, accident insurance and bank insurance. The company also provides property insurance services, which primarily include auto insurance. The company also provides other financial services such as brokerage services, asset management, etc.
Poly Real Estate (Poly Real Estate)
Poly Real Estate Group Co. Ltd. builds and sells residential buildings. In addition, the company provides real estate rental and property management services.
SAIC Motor
Shanghai Automotive Industry Corporation - it Chinese state-owned automobile company. The largest Chinese car manufacturer. The company was renamed SAIC Motor Corporation Limited. Chairman of the Board of Directors - Hu Maoyuan. SAIC began producing Phoenix executive-class tractors, buses and sedans for the PRC's party leadership.
In the mid-1980s, the company abandoned the production of its own car brand, and began producing cars through joint ventures. The SAIC factories produce cars, tractors, motorcycles, trucks, buses, as well as components for automotive equipment. SAIC includes more than 50 enterprises in the Shanghai economic zone. Among them: Shanghai-Sunwin Bus Corporation, Shanghai-Huizhong Automotive Manufacturing, Shanghai-Xingfu Motorcycle, Shanghai-New Holland Agricultural Machinary, Shanghai-Pengpu Machinary.
Shanghai Airport
Shanghai International Airport Co., Ltd. operates Pudong and Hongquiao airports in Shanghai. The company provides a full range of services including air traffic control, terminal management, cargo handling, advertising, space leasing and other related services.
Shanghai Port (Shanghai Port)
Shanghai International Port is deep-water sea and river port. Located in close proximity to a large metropolis of the People's Republic of China - Shanghai. Since 2005 it has been the world's largest port in terms of cargo turnover. Shanghai International Port (Group) Co., Ltd is a holding company that holds stakes in container shipping and port service companies.
Shanghai Oriental Pearl
Shanghai Oriental Pearl (Group) Co. Ltd. owns and operates the Oriental Pearl Tower in Shanghai and offers related tourism and advertising services. The Company also offers television broadcasting services through its branches.
Oriental Pearl Tower is Shanghai TV Tower, built in 1995, is one of the tallest towers in China. The "Oriental Pearl", as it is often called in Russia, is located in the Pudong area and plays the role of a modern business center. Its height is 468 meters. Weight - over 120,000 tons. The base is made up of three vertical reinforced concrete cylinders with a diameter of 9 meters.
Shanghai Petrochemical
Sinopec Shanghai Petrochemical Co., Ltd. refines crude oil into a wide range of synthetic fibers, resins and plastics, petrochemical intermediates and petroleum products.
Shanghai Pudong Development Bank
Shanghai Pudong Development Bank (SPDB) is a large joint stock commercial bank that was established in 1993. SPDB is headquartered in Shanghai. On September 23, 1993, Shanghai Pudong Development Bank issued 400 million shares for trading on the Shanghai Stock Exchange. Thus, the registered capital reached RMB 2,410 million. On November 10, 1999, another 320 million shares were listed on the Shanghai Stock Exchange. The SPDB's goal is to provide financial services and contribute to the development of the national economy and social progress.
As of the end of 2004, the bank's total assets reached 455.530 billion yuan. The outstanding balance of all deposits was 395.38 billion yuan and outstanding loans were 310.9 billion yuan. Profit after tax was RMB 1.930 billion. The company employs 31,000 people. The bank tries not to advertise its income, but you can find out their net profit (2006) - it amounted to 418.75 million dollars.
Shanghai Zhenhua Port Machinery
Today, the association "Shanghai Zhenhua Port Machinery Co. Ltd." (ZPMC), which is engaged in the design, manufacture and delivery of modern port handling machines to the customer. The production volumes of container handlers in China, their technical level and world popularity are amazing. On the Internet, you can immediately find about fifty countries where ZPMC has supplied container handlers over the past 17 years. And this is hardly a complete list.
According to our information, ZPMC started shipping container handlers in 1990. For ten years, up to 1999 inclusive, 31 cranes were manufactured, and over the next seven years, from 2000 to the present, - 510 cranes! A particularly large number of material handlers were delivered in 2006 - 169 units. A modern container handler can have a height of over 100 m, a lifting console towards a vessel over 70 m long, a lifting capacity of up to 120 tons and a weight of 2000 tons. Handlers are usually connected to a port AC power grid with a voltage of 4000-12000 V. USD 10 million.
Shenergy Company
Shenergy Group Company Limited is a state-owned enterprise owned by the Shanghai government in China. This company is engaged in investments in electricity, oil and natural gas in the Shanghai region and the East China region.
Sichuan Hongda
Sichuan Hongda Chemical Co., Ltd. manufactures zinc ingots and zinc oxide products, and processes and manufactures chemical products. The Company's chemical products include phosphamidone, premium conventional phosphates, calcium phosphates, potash fertilizers, and compound fertilizers.
Tianjin Port
Tianjin is the fourth largest city in China. It is located near the Haihe River. Major ports are located on the coast of the Bohai Bay of the Pacific Ocean. Tianjin is the center of the historical and cultural heritage of China, famous sights are located here. Active cooperation with Russia ensures export to neighboring territories. The Chinese government is aimed at attracting Russian investment, and therefore, tax incentives are in effect for entrepreneurs from the Russian Federation.
Covered warehouses occupy about 189 thousand square meters, the container site occupies 840 thousand square meters. The port equipment includes two floating cranes with lifting capacities of 120 and 200 tons. The main imports are: rolled metal and equipment, grain. They export general cargo, corn. This municipality in China has an urban population of about 6 million. Today the city is one of the largest industrial centers in a country with a highly developed economy. Today, it is one of the most important international ports in China, linking Asia and Europe. It has trade relations with ports in 180 countries around the world, and includes a duty-free zone.
Tsinghua Tongfang (Tsinghua Tongfang)
Tsinghua Tongfang Co., Ltd. manufactures personal computers, develops application software, offers training programs and a range of services in the field of computer networking and system integration. The company also produces electricity and environmental technical equipment, develops and sells real estate.
Wuhan Iron and Steel
Starting operations on September 13, 1958, WISCO (WUHAN IRON AND STEEL (GROUP) CORP.) Is the main factory for the production of quality sheet products in China. After the joint consolidation and reorganization of WISCO with the metallurgical plants E-gang, Liu-gang, Kunming-gang, WISCO became a large group - an enterprise with a steel production capacity of 40 million tons - and is ranked 5th in the world in ferrous metallurgy according to WORLDSTEEL ASSOCIATION 2011. ... In 2011, Wisco generated annual revenues of $ 34.3 billion and was ranked 321st on the Fortune 500 list of the world's largest enterprises. At the moment, WISCO has already opened its representative office in Moscow and is developing on the Russian market, entering the CIS market.
WISCO now specializes in three main areas; metallurgical production, high-tech industry and international trade. Metallurgical products include hot rolled steel, hot rolled heavy railroad slabs, cold rolled coil, galvanized and painted polymer coated coil, sheet metal, cold rolled grains, silicon, steel, pipes, high speed wires and other products.
Yantai Wanhua Poly
The company "Yantai Wanhua Polyurethanes Co., Ltd" is the largest manufacturer of polyurethane foam materials and raw materials for spraying polyurethane foam in China, and is one of the recognized leaders in the world market for polyurethane foam systems. Yantai Wanhua Polyurethanes is rapidly introducing polyurethane foam systems and covers the market for the production of polyurethane foams in the territory of the Russian Federation, producing only high-quality and time-tested systems for spraying polyurethane foam. The StroyTeploMir company, as an official distributor, represents a number of manufactured PPU components.
Youngor Group (Yongjor Group)
Youngor Group Co., Ltd. manufactures and sells shirts, suits, casual wear, ties and other accessories. The company also offers import and export services, invests in real estate and operates hotels.
Stock selection for the SSE Composite Index
In accordance with the Securities Regulations of the Law of the People's Republic of China, a limited liability company, when applying for a listing of shares, must meet the following criteria: the shares must have been publicly issued after approval by the State Council of the Securities Management Department. The total capital of the company must be at least RMB 30 million. The company must have been involved in the business for more than three years and have demonstrated profits for the last three years. This requirement also applies to former state-owned enterprises that have been re-registered as private or state-owned enterprises.
The number of shareholders in a holding that has reached a value of over 1,000 RMB should not be less than 1,000. Publicly placed shares must be more than 25 percent of the total share capital of the company. For a company whose total share capital exceeds RMB 400 million, the publicly listed share ratio must be more than 15 percent. The company must not have carried out illegal transactions for the past three years.
Currently, China prefers domestic firms, but the PRC's stock market is open to foreign investors as well. The conditions for filing applications for listing shares for closed companies participating in high and new technologies are set out separately in a document of the State Council. Experts highly appreciate the capabilities of the Shanghai Stock Exchange. The Chinese market has been developing very actively lately. New enterprises are emerging and existing ones are developing, which wish to place their shares on the stock exchange.
Life in the People's Republic of China
Calculation of the SSE Composite Index
The index is calculated using the following formula:
Factors Affecting the SSE Composite Index
The SSE Composite Index “sagged” only in December 2008. The Shanghai Composite has lost more than 20% since February 6, when the index recorded its highest reading this year. The downturn in the Chinese market was caused by fears of a crisis in the money market and its consequences for the rates of economic growth of the PRC.
China's economic growth engine
“The recent economic situation in China raises concerns among investors. Overheating of the country's economy, combined with growing “bubbles” in certain sectors, puts pressure on both Chinese and world stock exchanges, ”Svetlana Korzeneva, a leading analyst of ALOR Group, commented on the situation to the BUSINESS Online newspaper. - At the same time, the weak statistics on the country's economy released recently contributed to the lowering of forecasts for the GDP of the Celestial Empire on the part of the world's leading banks, which acted as an additional negative driver. It should be noted that one of the problematic sectors in China is the lending sector. In January-April, according to the Economist Intelligence Unit, lending in China grew by 60% over the same period a year earlier.
Cheap loans are actively used, however, against the background of overstocking, it can be difficult to pay off on them. In turn, the increase in debt, coupled with a slowdown in growth rates, threatens the country with big problems. To maintain a precarious balance, the Chinese are forced to "inflate" the real estate and manufacturing sectors: a significant amount of housing is unoccupied, and much more goods are produced than required. As a result, such negative preconditions negatively affect the mood of stock investors. As a result, the SSEC index is trading at 2008 levels. "
“In June, there were very weak statistics on exports, imports and industrial production in China, indicating a continuing decline in external and domestic demand for Chinese goods and foreshadowing a further decline in China's GDP growth this year,” says Anton Soroko, an analyst at the FINAM investment holding ... - In addition, there were reports of a liquidity crisis in the interbank market in China. Considering that the PRC government still refuses to expand measures to support the economy, believing that the deterioration of economic indicators is a temporary cost of the structural reforms carried out in the country, the situation in the Chinese economy in the coming quarters may become a significant risk for world markets, especially developing ones.
The American bank Morgan Stanley, following several other financial institutions, lowered its forecast for the growth of the Chinese economy in 2013. Let me remind you that earlier the expected increase in the PRC's GDP by 8.2%, while the updated estimate assumes an increase of only 7.5%. The revision was mainly due to weak data on exports, imports and industrial production of the country. The Chinese leadership believes that the slowdown in GDP growth is a price to pay for structural reforms in the country's economy. Thus, the Chinese government has chosen another way to solve the problem of overheating of some segments of the economy - a gradual cooling due to squeezing liquidity at the level of KB.
Overall, the slowdown in China's growth is hitting the entire global economy, not just Russia. At the moment, the PRC is both a production site and a promising consumer market. Western companies (and Russian ones as well) have reoriented their production capacities in order to supply most of their products (or raw materials, if we are talking about raw material countries) to China.
China export
As a general rule: national stock indexes fall - the national currency falls. This is the "classic" reaction of the Forex market - as they say, "according to the textbook". It works well during periods of growth in the global economy. But there is still another type of dependence ... Rule number 2: when the global financial markets are seized by panic and "risk aversion", all stock indices fall, and gold and the so-called "safe haven" currencies rise in price. Such a reaction is typical for periods of crisis when uncertainty reigns in the prospects for the world economy and in the future in general. For the world financial and economic crisis we are observing, this pattern is highly characteristic, therefore, in real trading today we have to forget about the "classic" reaction ... However, the crisis is by no means a hindrance for making money on FOREX! Rather the opposite is true. In its muddy water, you can very much even catch your "goldfish".
Historical graph of the dynamics of the SSE Composite index for 20122013 SSE Composite Index Chart
Sources and links
Sources of texts, pictures and videos
ru.wikipedia.org - the free encyclopedia Wikipedia
stocks.investfunds.ru - private equity investment
dengopad.ru - information and financial portal
tour-systems.ru - travel portal about China
sse.com.cn - the official website of the Shanghai Stock Exchange
mfd.ru - economic statistics of the stock market
minprom.ua - economic information agency
quarta-embedded.ru - site about embedded IT systems
asiareport.ru - information portal Asian reporter
founder.kz - website of a Chinese IT-technology company
supergu.ru - forecasts on the stock exchange
bloomberg.com - financial and economic news
business-gazeta.ru - online business newspaper of Tatarstan
1prime.ru - economic information agency Prime
finget.ru - overview of world financial markets
querywords.ru - financial encyclopedia
forex-x.ru - site about the forex market
sberbank.biz - site dedicated to Sberbank of Russia
old.zerich.com - internet trading, stock trading on the stock market
profi-forex.org - news, analytics and stock market forecasts
smart-lab.ru - sMart-Lab traders club
wffw.info - news, analytics, financial rating of companies in the world
finam.ru - website of the Finam dealing center
abforex.ru - website of AB Forex Company dealing center
Sources of internet services
forexaw.com - information and analytical portal for financial markets
wordstat.yandex.ru - a service that allows you to analyze search queries
Google.ru is a popular search engine
translate.google.ru - translator from Google search engine
maps.google.ru - Google search engine maps
yandex.ru is the largest search engine in the Russian Federation
ru.tradingeconomics.com - site of economic indicators
google.com/finance - Statistical financial and economic indicators
Links to application programs
getpaint.net - Free imaging software
windows.microsoft.com - the site of the Microsoft corporation that created the Windows OS
office.microsoft.com - site of the corporation that created Microsoft Office
chrome.google.ru - a frequently used browser for working with sites
FT Announces First Foreign Bank Listed on Shanghai Stock Exchange The first foreign bank to issue depositary receipts for companies trading on Shanghai exchange, may become the British HSBC, reports the Financial Times. A mechanism to enable this ... by a bank that issues depositary receipts for companies whose shares are traded on Shanghai exchange, according to the Finacial Times. According to the newspaper, this could happen already ... Shanghai exchange Shanghai stock exchange Shanghai futures exchanges(SFE) and Shanghai exchanges Russia invited China to participate in the determination of prices for Urals oil ... using futures to hedge risks. He believes that the agreements with Shanghai exchange can be achieved in the fourth quarter of 2017. Representatives of SHPGX ... China's securities regulator did not respond to inquiries from RBC. Shanghai stock exchange should become a point of access for Chinese investors to trade futures on ... and reforms (NDRC), the People's Bank of China (PBC), Shanghai futures exchanges(SFE) and Shanghai international energy exchanges(INE), the FAS press service reported. Futures of a difficult fate ... ... both exchanges exchanges Shanghai exchanges Shanghai stock exchange exchanges Shanghai stock exchange Shanghai, and... Shanghai Stock Exchange began to lose its status as the largest stock market in China ... both exchanges were almost equal. The last five days turnover on both exchanges amounted to approximately $ 27.1 billion. Over the past 12 months, turnover Shanghai exchanges... Jingtao, although in the coming months SME Board and Shanghai stock exchange can compete for the status of the largest exchanges by volume of traded shares, SME Board personifies .... Shanghai stock exchange- the fifth in the world in terms of capitalization [¥ 25 trillion, or $ 3.8 trillion as of June 28] and the second in Asia. AND Shanghai, and... shanghai exchanges Shanghai exchanges Chinese Markets Freeze Awaiting UK Referendum Results ... the first minutes of trading in both the Hong Kong Hang Seng Index and shanghai The SSE Composite was down 0.4% each. Subsequently it became known ... at 4:55 Moscow time, the Hong Kong index exchanges adds 0.1% to yesterday's close, and the index Shanghai exchanges decreases slightly - by 0.06 ... Shanghai exchanges exchanges exchanges Broker Checks Collapse China Stock Indices ... China stock indicators - index Shanghai exchanges The Shanghai Composite hit a three-month low, down 5.5%. Shenzhen Index exchanges The Shenzhen Composite, which fell during ... the stock market, triggering its subsequent crash. In November, the two largest exchanges Mainland China tightened credit requirements, doubling the volume of ... Shanghai exchanges Shanghai China went from supporting the market to arresting "pests" ..., 3 trillion yuan ($ 200 billion). Despite an unprecedented amount, the index Shanghai exchanges Shanghai Com posite fell 38% after 12 ... from stock exchanges. On Black Monday, August 24th, when the fall Shanghai the index provoked sales on global markets, the main stories in Chinese ... Shanghai exchanges exchanges exchanges fell 2.32%. The Chinese market resumed its decline ... the actions of the PRC authorities. According to Bloomberg, the index became the leader of the fall Shanghai exchanges, which dropped to a minimum of 3.7% (around 8:13 ... 7%. On Monday, other Asian exchanges... Thus, the Japanese Nikkei 225 sank 1.28%. The fall closed ... / ASX 200 dropped 1.07%. China Shenzhen Stock Index exchanges fell 2.32%. Elizaveta Focht Index of the largest in China Shanghai stock exchanges exchanges exchanges Shanghai Stock Exchange Index fell 8% in a week Index of the largest in China Shanghai stock exchanges The Shanghai Composite fell 7.9% over the week, Bloomberg reported. ... for the week, follows from the stock market data. Shenzhen Stock Index exchanges(Shenzhen Composite) ended the week with growth of 5.4%, to 1846 ... amounted to 9.4%, the BBC notes. Hong Kong Stock Index exchanges(Hang Seng Index) closed on August 28 with a noticeable fall ... Shanghai exchanges exchanges Shanghai Composite Index Closes 5.4% Increase ... by the close of trading grew by 5.4%, follows from the data Shanghai exchanges... As noted by Bloomberg, following the results of the previous five trading sessions, the ... Composite index reached 3085.42 (+158.13). Shenzhen Stock Index exchanges(Shenzhen Composite) by the close of trading rose 3.3%. How... exchange Shanghai exchanges Chinese intelligence agencies launch an investigation into stock market manipulation China's Ministry of Public Security Launches Investigation of Stock Manipulation exchange in Shanghai, suspecting a number of companies of foul play. The investigation is being led ... to the fact that following the trading results on July 9, the main index Shanghai exchanges Shanghai Composite rose 5.8% to 3709.33 ... Index Shanghai exchanges Shanghai exchanges Shanghai exchange Shanghai Stock Exchange Index makes a record leap since 2009 Index Shanghai exchanges The Shanghai Composite in trading on July 9 rose by 5.8% ... in the month its capitalization fell by $ 3.9 trillion. Main index Shanghai exchanges The Shanghai Composite rose by 5 on July 9 ... before the prohibitive measures of the Chinese government, many companies with Shanghai exchange suspended trading in their shares under various pretexts. According to Reuters ... Shanghai stock exchanges exchanges exchanges China imposed a moratorium on the sale of shares due to the stock market crisis ... The Composite lost over 35%. Today is no exception for Shanghai stock exchanges: the index fell 5.9% to the opening, to 3507 ... the authorities imposed a temporary ban on state-owned companies on the sale of shares on exchanges... The limitation will remain in effect until the end of the current period of volatility in the stock ... has been blocked. More than 1.3 thousand companies have suspended trading at exchanges and this contributed to the $ 2.6 trillion share freeze, or ...One of the important symbols of the rapidly growing Chinese economy is quite rightly considered (上海 証交所, English - Shanghai Stock Exchange - SSE).
Established relatively recently, in 1990, today it is confidently among the ten largest trading floors in the world, occupying, according to various sources, the 4th-7th place. This is logical and easily explained by the fact that the GDP of the People's Republic of China, according to many analysts, already exceeds the indices of the indisputable leader of recent decades - the United States.
It is important to note that the PRC government is pursuing a tough financial policy aimed at severely limiting the flow of funds from foreign investors. Otherwise, the position of the Shanghai Stock Exchange in the world market would be even more impressive.
The Shanghai Stock Exchange is the largest platform in the People's Republic of China (PRC) for trading stocks and other types of securities. The English name of the organization is as follows - Shanghai Stock Exchange or SSE for short. The Shanghai Stock Exchange, along with the Shenzhen ( SZSE) are two independent exchanges located in mainland China.
The main financial instruments used on the largest Chinese stock exchange are stocks and bonds, as well as various stock indices. It is important to note that stocks fall into two categories, one of which is priced and traded in RMB and the other in USD.
The Chinese Stock Exchange is located in the largest city in the country, and according to some sources, in the whole world, Shanghai. The official address in English looks like this: 528 South Pudong RD., Shanghai, 200120, PR China.
Official site
Official website of the Shanghai Stock Exchange: http://english.sse.com.cn/.
Shanghai Stock Exchange opening hours
Trading on SSE takes place from Monday to Friday. The Shanghai Stock Exchange is open for two trading sessions:
- the first one lasts from 9.00 to 11.00 Shanghai time (it is 5 hours ahead of Moscow time);
- the second starts at 13.00 and continues until 15.00.
Between sessions there is an hour and a half break, traditionally called lunchtime. Preparation for trading is carried out from 9.15 to 9.25.
SSE owners
The Shanghai Stock Exchange is a non-profit organization. It is under the direct and direct control of the PRC government agency called the Securities Commission.
Bidders
The Chinese stock market is tightly controlled by government agencies. Therefore, until 2002, access to the Shanghai Stock Exchange was closed to the vast majority of foreign investors. Even after most of the restrictions were lifted, the division into shares traded in dollars and yuan remained.
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History of creation
Despite the fact that the Shanghai Stock Exchange was officially established only in 1990, namely on November 26, the securities market in China appeared much earlier, which is quite natural, given the size and population of this far from the smallest country. However, before describing the stages of the formation of the stock market, one should pay attention to some state features of its formation, which are reflected in the modern work of both SSE and China's second trading floor, SZSE.
For a long time, the stock market in China was formed along a similar path to other Asian countries, which are close in terms of the level of development of the financial sector of the economy. However, first for the period of occupation by Japan during the Second World War, and then after the Communist Party came to power in 1949, all stock exchanges operating at that time were closed. This situation continued until the first half of the 80s of the last century, when there was a serious lack of financial resources necessary for the further development of the country's rapidly growing economy.
The result of this situation was the issuance of bonds by the Government of the PRC, which became a kind of signal for the revival of the state's stock market. Over the next few years, the proven fundraising scheme was put in place several times. Together with the rapid economic growth, this has become one of the main reasons for the emergence of the Shanghai Stock Exchange in its modern form.
Shanghai Exchange from the inside
The main stages of development of the Chinese stock market
- 1842 year. The signing of the Nanjing Treaty following the first Opium War, which allowed foreigners to take part in the Chinese economy.
- 1866 year. The first securities transaction registrar is launched in China.
- 1891 year. Opening of the first trading floor, the Shanghai Stockbrokers Association, where mining shares were traded.
- 1904 year. Official registration of the site as the first Shanghai Stock Exchange in China.
- The year is 1929. Takeover by the Shanghai Stock Exchange of several smaller trading floors.
- 1930 year. Leading positions of SSE in the financial market of the Far East.
- 1941 year. On December 5, the exchange was closed due to the events of the Second World War and the occupation of a significant part of the country, including Shanghai, by Japan.
- 1946 year. The resumption of the work of the Chinese stock market and the activities of exchanges after the end of the Japanese occupation.
- 1949 year. The closure of exchanges and the stock market as a whole by the decision of the Chinese Communist Party, which came to power.
- 1981 year. Resumption of trading in government bonds.
- 1984 year. Opening of trading in securities of various Chinese companies in several major cities, including Shanghai.
- 1986 year. It opens in April, and it only affects the Chinese market in 1997, when Hong Kong officially becomes part of the PRC.
- 1990 year. On November 26, the Shanghai Stock Exchange is created, which begins operations in three weeks, that is, on December 19.
- 1991 year. The second China Stock Exchange opens in Shenzhen in December - SZSE.
An interesting fact. The Shanghai Stock Exchange is one of the few and only large similar organizations that did not stop working for a single day, even during the global financial and economic crisis of 2008-2009.
Current SSE position
Today, the Shanghai Stock Exchange is considered one of the undisputed market leaders, occupying, according to various estimates, the 4th-7th place among the world's largest securities trading floors. This was a consequence of the rapid development of the Chinese economy in the past 4 decades, which led to a logical and no less rapid growth of the country's stock market.
Development of SSE in recent years
However, the beginning of the 21st century was quite problematic. Between 2001 and 2005, there was a fairly serious market decline, which came as a surprise after many years of growth. As a result, in April 2005, a ban was imposed on new IPOs, which made it possible to somewhat reduce the tension on the market and resolve existing problems at the expense of securities already put into circulation. As a result, in May 2006 SSE resumed full-fledged activity, and the ban on IPO was lifted.
However, already at the beginning of 2007, namely on February 27, on Tuesday, later nicknamed “ black", One of the main indices collapses SSE Shanghai Composite by 9% in one trading session. Such a serious fall in the Chinese stock market was reflected in many trading floors around the world. This resulted in significant adjustments in the operation of the Shanghai Stock Exchange and the Chinese stock market and other types of securities in general.
Curious fact... According to financial analysts, one of the main reasons for the collapse that occurred on February 27 was the words of the deputy speaker of the country's parliament Zheng Xiwei about how dangerous the further inflation of the "stock bubble" is.
As a result, in 2007-2008, the country's market is going through a period of so-called stock frenzy associated with another period of rapid growth, and SSE at some time becomes the second largest trading floor in the world, second only to the undisputed leader - the New York Stock Exchange.
The number of brokers' clients officially registered in China at the beginning of 2007 exceeded 80 million. In other words, more than half of Russia's population traded on the Chinese stock market.
Even after the onset of the global economic crisis, China in general and the Shanghai Stock Exchange in particular did not lose their positions. To confirm these words, it is enough to give the following figures:
- in 2006 at SSE he carried out an IPO worth $ 21.9 billion. Industrial and Commercial Bank of the People's Republic of China;
- In 2010, the IPO of the Agricultural Bank of the PRC took place on SSE, the value of which exceeded $ 22.1 billion.
Before another giant from China listed its $ 25 billion worth of shares on the NYSE in 2014, these were the largest IPOs in the history of the global stock market.
Of the three largest IPOs to date, all three were carried out by Chinese companies, two of them on the Shanghai Stock Exchange.
However, even an economy as powerful and advanced as China's can face serious problems. Another proof of this thesis was the recent collapse at SSE, which occurred on February 25, 2016. On this day Shanghai Composite Index dropped immediately by 6.4%, which, of course, immediately affected the world stock market as a whole.
Exchange functions
The peculiarities of the functioning of the Chinese financial and economic system have led to the fact that the Shanghai Stock Exchange performs, in addition to traditional, and not quite usual functions for such an organization. These include:
- retention of capital within the country through the development of the country's stock market;
- regulation of relations between participants in securities trading;
- effective redistribution of financial resources available within the state and coming from outside;
- restricting access to the Chinese stock market and, as a result, the ownership of Chinese enterprises by foreign investors.
Obviously, taking into account all of the above, it is rather difficult to call the stock market that has developed in China as fully market-based due to serious government control and existing restrictions on capital inflows from abroad. However, this does not prevent the country's economy from developing successfully, despite the periodically occurring market collapses, which not a single state, even the most financially developed, has escaped.
Key financial performance indicators and positions of the exchange in the world
One of the features of the Chinese stock market, which is equally relevant to other spheres of the economy, is the rather serious secrecy of a significant part of the information. Therefore, in various sources, data on the performance of SSE and, as a consequence, its place on the world stock market, seriously differ.
So, on the official website of the exchange itself, the following figures are given:
- the number of companies that have passed the listing procedure - 1334;
- place in the rating of stock exchanges by market capitalization - 4;
- place in terms of trading turnover - 4.
According to information from other sources, it follows that the number of companies that successfully passed the listing procedure increased to 1182. At the same time, the capitalization of the exchange amounted to ¥ 28.5 trillion. (approximately $ 4 trillion.), and the daily trading turnover reaches ¥ 205.6 billion. (approximately $ 29.54 billion)
In any case, it is safe to say that the Shanghai Stock Exchange is one of the 5-6 largest trading floors in the world, while its position is likely to strengthen even more in the coming years.
Based on Wikipedia data and official information posted on the websites of the largest exchanges, the following picture emerges. The New York Stock Exchange ($ 19.2 trillion) is in the lead in terms of total capitalization by a fairly large margin, NASDAQ and the London Stock Exchange ($ 6.8 and $ 6.2 trillion, respectively) are in 2nd place, and On the 6th place are the three largest Asian trading floors - Tokyo, Shanghai and Hong Kong stock exchanges (respectively, $ 4.4 trillion, $ 4.0 trillion and $ 3.3 trillion).
Shanghai Stock Exchange Indices
The main indicator of the activity of SSE is. Another common name for this one of the indicators important for the entire world stock market is Shanghai Composite.
It was developed about six months after the modern opening of the exchange, that is, on July 15, 1991. The calculation is based on the dynamics of prices of all shares of companies traded on the stock exchange. Less popular and known is another index - SSE 50... It is calculated on the basis of data on the value of shares of 50 companies with the largest capitalization.
Listing on SSE
Company | Industry |
Sinopec | Oil & gas |
China Southern Airlines | Airline |
China United Network Communications | Telecommunication |
Sinolink Securities | Financial services |
Kangmei Pharmaceutical | Pharmaceutical |
AVIC Aviation Engine | Aerospace |
Daqin Railway | Rail transport |
China Shenhua Energy | Energy |
Industrial bank | Banking |
Bank of Beijing | Banking |
China Railway Construction | Construction |
Ping An Insurance | Insurance |
New China Life Insurance | Insurance |
PetroChina | Oil & gas |
SSE imposes extremely stringent requirements on companies wishing to go through the listing procedure, which are rightly considered one of the most difficult to fulfill in comparison with other major trading floors in the world. In particular, in order to list shares or other securities for trading, the applicant company must:
- working profitably for the last three years;
- have a capitalization of ¥ 30 million (almost $ 4.6 million);
- have 1000 shareholders;
- with a share capital of ¥ 400 million or more, at least a quarter of this amount must be placed on SSE.
The most active listing on the Shanghai Stock Exchange, which is quite natural, are Chinese companies. It is important to note that about 80% of them are fully or partially state-owned.
Such indicators once again clearly demonstrate how specific the Chinese economy is and how different it is from other developed economies in the world.
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The Shanghai Stock Exchange (SHSE) is one of the leading in the Asian region and the largest platform in China for free trading of various financial assets, primarily shares.
The Shanghai Stock Exchange is a non-profit association run by the State Securities Commission of the People's Republic of China. In 2018, the capitalization of the exchange exceeded $ 4 trillion. Stocks of more than 1,300 companies and about 8,000 bonds are available for brokers on the CFB. The modern history of the exchange has been going on since 1990 and at the moment it is one of the five largest trading floors in the world.
The history of development
Stock trading in Shanghai first began in the 1860s, when the formation of the Chinese stock market began. The trading floor itself was opened in 1891 with the active assistance of foreign businessmen with business interests in China. At the same time, the exchange was officially registered only in 1904, and by 1930 the CFB had become the center of China's financial activities.The further growth of the CFB's influence was prevented by the war with Japan, due to which the work of the exchange was completely stopped. In 1946, trade resumed and the CFB began to regain its former influence on the financial world of China, but already in 1949 trade was stopped again due to the Communist revolution that took place in the country.
The revival of the CFB was facilitated by the economic reforms of Deng Xiaoping, which created the preconditions for the next start of trading in Shanghai. At the very beginning of the 1980s, China issued government bonds, the sale of which was organized on the basis of the CFB. Later, they were joined by bonds, and then by shares of local Shanghai companies.
All this happened against the background of the rapid economic growth of the PRC, and in 1990, the CFB began work in its current form, no longer stopping for a single day, even despite various crisis situations, such as "Black Tuesday" (February 27, 2007), when within just one trading session, the exchange index lost 9%.
Features of work
Like all leading exchanges in the world, the CFB is open from Monday to Friday and does not stop trading even on holidays. One trading session is divided into two periods: morning (from 9:30 to 11:30) and afternoon (from 13:00 to 15:00). The main assets traded on the CFB include stocks, stock indices and various types of bonds. The shares are divided into two types: A and B. A-type shares are quoted only in Chinese yuan, and B-type shares are traded in US dollars. To assess the performance of the exchange, the SSE Composite indices (calculated on the basis of all traded assets), SSE 50 (top 50 blue chips), as well as SSE 180 and SSE 380 are used.Since reopening in 1990, CFB has focused exclusively on electronic commerce through its own computer system. It is capable of carrying out up to 16,000 transactions every second, which makes it one of the most powerful trading systems in the world. At the same time, to control speculative price fluctuations, the CFB trading system is equipped with a special limiter module that automatically stops trading if the value of a traded instrument changes by more than 10% during the day.
Placement procedure
To list shares on the CFB, a company must meet the following requirements:- term of work with profit - at least 3 years;
- total capital - at least RMB 30 million;
- the volume of the placed shares is not less than 25% of the total capital or 15% for companies with a turnover of more than 400 million yuan.
Greetings! Have you noticed that the world financial markets have been in a bit of a fever since last summer? And few people remember that it all began with China ...
Today the "hero" of my post is an index of the Chinese stock market called the Shanghai Composite. What is happening to it now, and what are the prospects for the index for the near future?
In terms of age, the Asian market is quite young if you compare it with the European and American ones. It began to actively form only after the Second World War. Until that moment, China and Japan were almost completely isolated from the West.
Today in China there are about fifteen. Hong Kong and Shanghai are considered the centers of the securities market. Therefore, the state of the Chinese stock market is usually assessed by two main ones: Hang Seng (Hong Kong Stock Exchange) and Shanghai Composite (Shanghai Stock Exchange). In the screenshot below, I will give a graph with history:
And here's how both indices trade today, online:
Let's consider one of the indices in more detail - the one that is called the indicator of the Chinese economy.
Shanghai Composite (SSEC)
The Shanghai index has been calculated since 1990 (the base value was taken at 100 points). The Shanghai Composite calculates all shares from the A and B quotation lists of the Shanghai Stock Exchange. All foreign and domestic traders have access to list B shares. List "A" - only qualified foreign investors who are authorized on the exchange.
Interestingly, the Shanghai Stock Exchange is a non-profit organization and is administered by the PRC Securities Commission.
The SSE Composite Index (this is the abbreviated name for the Shanghai Composite) is called the main indicator of the Chinese stock market. It is calculated based on the daily prices that are included in it.
The index covers several sectors at once: manufacturing, energy, finance, raw materials, food products, telecommunications and healthcare. Large banks have the greatest weight in the index (both in terms of quantity and capitalization).
The online chart below is the Shanghai Composite Index:
Which companies are included in the SSE Composite Index?
The requirements for legal entities applying for participation in the index are quite strict.
- First, the shares must be issued only after approval by the Securities Management Department of the PRC State Council.
- Secondly, the authorized capital of the company must be at least $ 4.5 million, and the number of shareholders must exceed 1,000 people.
- Thirdly, the company must operate on the market for at least three years. Moreover, for three years she cannot engage in illegal activities.
Today, the index includes shares of Air China, banks (Bank of China, Bank of Communications, Hua Xia Bank), metallurgy enterprises (Aluminum Corporation of China and Baosteel), online sectors (CHINA UNICOM and Beijing Gehua CATV Network), oil industry (SINOPEC Shanghai Petrochemical Company), transport and railway companies (China Merchants Energy Shipping and Jiangxi Ganyue Expressway), energy and others.
China's blue chips form the SSE 50 index (shares of the fifty largest companies).
What's happening with the Shanghai Composite Index?
In recent years, China's economy has slowed due to the country's transition from production and investment to services and consumption. On the main Chinese index (and not only on it), this "restructuring" is reflected catastrophically. The main reason for the collapse of the Chinese securities market: China's overheated economy. At some point, the growth of investment in stocks exceeded the rate of economic growth and corporate profits. From November 2014 to July 2015, the Shanghai Composite index almost doubled (from 2507 to 5046 points).
The maximum was recorded on July 6 last year - 5166.35 points. On July 8, the index collapsed by 6.4%, which caused a real panic in the market. The next day, 500 large companies immediately suspended trading in securities due to the high risk of bankruptcy. On July 18, the Shanghai Composite fell another 6.15%. At the end of August, after a month of stabilization, the Chinese stock market crash resumed. This caused a chain reaction - the chart of stock indices around the world plunged down by 6-8%.
On August 22, 2015, the Shanghai Composite reached 3509.98 points. And by the end of summer, it dropped below 3000 points altogether (for the first time since the beginning of the crisis). Stocks traded in the Chinese stock market lost $ 5 trillion. capitalization - an absolute record since 1992.
The Committee of the State Council of China for the Control and Management of State Property intervened in the situation and banned the sale of shares of state-owned companies on the stock exchange. The People's Bank of China started the yuan against the dollar and stopped financial injections to support the exchange due to their inefficiency.
The collapse of the Chinese stock market continued in 2016. Since the beginning of the year, the Shanghai Composite has lost 23%. On February 29, the value of the index was 2 688 points. In March, the international Moody's downgraded the outlook on China's credit rating from "stable" to "negative". Standard & Poor’s agency did the same.
To remedy the situation, the Chinese government promises to accelerate the reform of the regulation of the PRC's financial sector. Everyone is waiting for new regulations, which can be promulgated this summer ...
In conclusion, to all of the above "pessimism" I can only add that investments in the Chinese economy are still relevant and promising for me. In the long term, it still promises profit, which cannot be said, for example, about the Japanese stock market ... By the way, I want to tell you about this economic phenomenon (NIKKEI) next time!
What are your forecasts for the Shanghai Composite Index? How quickly can he play back his fall? And should we expect its growth in the near future? Subscribe to updates and do not forget to share links to the most interesting posts with your friends!