A Look at the Shanghai Stock Exchange

A Look at the Shanghai Stock Exchange

The Shanghai Stock Exchange (SSE) was founded on Nov. 26th, 1990 and commenced operation on Dec.19th of the same year. It is a non-profit organization directly governed by the China Securities Regulatory Commission (CSRC). SSE bases its development on the principles of legitimacy, regulation, self-discipline, and compliance in order to create a transparent, open, reliable and efficient marketplace. SSE endeavors to perform a variety of functions such as providing marketplace and facilities for the securities trading, formulating business rules, accepting and arranging listings, organizing and monitoring securities trading, regulating members and listed companies, and managing and disseminating market information.

SSE has 31 departments or affiliated organizations. They are Executive Office, Offering and Listing Department, Listed Company Supervision Department, Listed Company Supervision Department Ⅱ, Trading Management Department, Market Surveillance Department, Membership Department, Bond Market Department, Global Business Development Department, Fund Market Department, Derivative Market Department (preparatory), System Operation Department, Technology Development Department, Technology Planning and Service Department, Information Center, Legal Affairs Department, Investor Education Department, Finance Department, Executive Office, CPC Committee Office & Disciplinary Inspection Office, Human Resources Department, Administrative Service Center, FTZ Trading Platform Preparation Team, and SSE New Building Construction Project Team. Additionally, SSE has three wholly owned subsidiaries: the Shanghai Securities Telecommunication Co. Ltd, SSE InfoNet Co. Ltd and SSE Financial Service Co. Ltd. All of them operate efficiently to ensure that SSE fulfills its role as an organizer in the securities market. Meanwhile, SSE also expanded its businesses by investing in the shares of 16 other companies.

After a quarter century of development,SSE has made laudable efforts in pushing forward reforms. With the introduction of “Shanghai-Hong Kong Stock Connect” and the “Equity Option”, SSE broke new ground and became into a more open, comprehensive, and modern exchange. Today SSE has evolved into an exchange with a sound market structure and four major securities categories: equities, bonds, funds and derivatives. It has put into operation the world’s leading exchange system and infrastructure communication facilities that can contribute to the efficient running of the Shanghai securities market. Besides, a self-regulatory framework has been put into place regulating listed companies, SSE members and the securities market. By the end of 2015, SSE altogether had 1081 listed companies with the total market capitalization hitting 29.5 trillion RMB. Its total annual turnover in 2015 stands at 132.6 trillion RMB and the average daily turnover reached 543.3 billion RMB. The total capital raised in the equities market in 2015 was a staggering 871.3 billion RMB. The bond market consists of 4,489 listed bonds with the outstanding value totaling 3.44 trillion RMB, the annual turnover standing at 122.8 trillion RMB. Stock options contracts traded hit 510, with the average daily volume of 106,000 contracts, the average daily premium amounting to 110 million yuan. 135 funds have been listed in the fund market with a market value reaching 454.3 billion RMB, the annual turnover hitting 10.4 trillion RMB. The registered account of investors has reached 136.99 million by the end of 2015.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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