Our partner, XM, lets you access a free demo account to apply your knowledge.
No hidden costs, no tricks.
The Shanghai Stock Exchange is the largest securities exchange in Mainland China and one of the largest stock exchanges in Asia. The exchange is home to a wide range of companies, chiefly from the financial services, construction, and industrial sectors.
Here are some quick facts about the Shanghai Stock Exchange:
While the Shanghai Stock Exchange has become one of the largest exchanges in the world in terms of market capitalization, the exchange has been of lesser strategic importance to the Chinese economy over the years than the Hong-Kong Stock Exchange, which had allowed companies from Mainland China, including tech giants and financial institutions, to make their shares available to an international pool of investors. The Shanghai Stock Exchange is still heavily regulated by the state - with strict capital account controls. The exchange is also not fully open to the international investing public, which limits access to foreign capital for companies that list their shares on the SSE.
The SSE has four different categories of criteria companies need to meet in order to list their shares on the exchange, which are:
Reliable accounting and internal controls:
Compliance with laws and regulations:
As for the specific financial requirements directed at companies, the SSE allows IPOs for companies that:
While the Shanghai Stock Exchange is a non-profit directly administered by the CSRC, the exchange still needs to generate revenue to continue operating unobstructed. Some of the ways the SSE generates revenues are:
The SSE charges different fees based on the securities being exchanged. However, the fees charged for stock trades are fairly straightforward:
The SSE 50 is one of the most followed indexes on the Shanghai Stock Exchange and consists of the top 50 companies listed on the exchange. It is one of the most popular equity indexes in Asia.
The SSE 50 is a float-adjusted market capitalization-weighted index, which means that the largest constituents have an outsized influence on the performance of the index. The SSE 50 was first published in 2004 and has since become one of the most popular stock indexes in Asia. The index includes some of the largest financial institutions and industrial corporations in Mainland China. The ticker code for the SSE 50 is 000016.
Here’s how much weight individual sectors have in the SSE 50:
The 10 largest constituents of the SSE 50 are weighted as follows:
|Ping An Insurance||601318||7.62%|
|China Merchants Bank||600036||6.91%|
|Longi Green Energy Technology||601012||3.84%|
|China Yangtze Power||600900||3.58%|
|China Tourism Group Duty Free||601888||3.16%|
|Inner Mongolia Yili Industrial Group||600887||2.97%|
|Wanhua Chemical Group||600309||2.61%|
The Kweichow Moutai Company is a partially-public corporation that is the largest beverage company in the world and the dominant producer of the baijiu spirit.
Overall, the index is primarily dominated by financial and industrial companies - a sizable portion of which are partially owned by the government.
The SSE Composite is the benchmark index of the Shanghai Stock Exchange and tracks all A and B shares listed on the exchange. The SSE Composite is one of the most followed equity indexes in Asia and is often used to evaluate the financial health of the Chinese economy.
However, many analysts and public officials around the world have raised concerns over the reliability of the data provided by the companies, as the Chinese government owns a controlling interest and views many of them as of strategic importance.
The SSE Composite is a float-adjusted market capitalization-weighted index that tracks all A and B shares listed on the SSE. The index was first launched in 1991 with a base value of 100 and has since reached above the 3,000 mark. The index is currently home to over 1,600 listed equities in China, including private enterprises and state-owned businesses. The ticker code for the SSE 50 is 000001.
The index is weighted using the following formula:
Current Index = Current Total Market-Cap / Divisor × Base Level.
Here’s how each sector is weighted in the SSE Composite Index:
|Financials & Real Estate||24.2%|
The two industries that have an outsized impact on the SSE Composite Index are financials and industrials, which contribute to a combined weight of almost 45% of the index.
The Shanghai Stock Exchange is home to a total of over 2,000 listed equities, out of which, 1,600 make up the SSE Composite - the benchmark index of the exchange.
The beverage company Kweichow Moutai is the largest company listed on the Shanghai Stock Exchange, with a total market capitalization of $335 billion. The stock is part of the SSE 50 index.
No. The Shanghai Stock Exchange is one of two exchanges in Mainland China - the other being the Shenzhen Stock Exchange.