Definition
The Shanghai Stock Exchange (SSE) is the primary stock market in China, officially founded on November 26, 1990. It operates under the supervision of the China Securities Regulatory Commission (CSRC) and is located in the Pudong district of Shanghai. The SSE is renowned for being one of the largest stock exchanges in the world by market capitalization, and its main tracking index is the SSE Composite Index, which reflects the performance of all A-shares and B-shares listed on the SSE.
Examples
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SSE Composite Index:
- The SSE Composite Index is a major indicator of overall market performance, incorporating all A-shares and B-shares listed on the Shanghai Stock Exchange. It is a market value-weighted index.
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Industrial and Commercial Bank of China (ICBC):
- ICBC is one of the largest companies listed on the SSE, which showcases the type of large financial institutions that are traded on this stock exchange.
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China Petroleum & Chemical Corp (Sinopec):
- Another notable company listed on the SSE, emphasizing the diversity of sectors represented in the market, including energy.
Frequently Asked Questions (FAQs)
What is the main indicator of the Shanghai Stock Exchange?
The main indicator is the SSE Composite Index, which includes all listed stocks (A-shares and B-shares) in the Shanghai Stock Exchange and reflects the overall performance of the SSE.
When was the Shanghai Stock Exchange formally established?
The SSE was formally established on November 26, 1990.
How is the SSE regulated?
The SSE is regulated by the China Securities Regulatory Commission (CSRC).
What types of shares are traded on the SSE?
The SSE trades A-shares (which are denominated in RMB and are available to domestic investors and foreign investors under “Qualified Foreign Institutional Investor” schemes) and B-shares (which are denominated in foreign currencies and available to both domestic and foreign investors).
Where is the Shanghai Stock Exchange located?
The SSE is located in the Pudong district of Shanghai, China.
How does the SSE Composite Index reflect market trends?
The SSE Composite Index uses a market capitalization-weighted method to calculate the market performance of listed companies, providing an overview of the market trend.
Related Terms
A-shares
A-shares are shares of Chinese companies traded in Renminbi (RMB) on the SSE and Shenzhen Stock Exchange, accessible to domestic investors and qualified foreign investors.
B-shares
B-shares are shares of Chinese companies traded in foreign currencies (like USD) on the SSE and Shenzhen Stock Exchange, accessible to both domestic and international investors.
China Securities Regulatory Commission (CSRC)
The CSRC is the government agency responsible for overseeing securities and futures markets in China, including supervisory and regulatory functions regarding exchanges like SSE.
Market Capitalization
Market capitalization refers to the total market value of a company’s outstanding shares, calculated by multiplying the share price by the number of outstanding shares. It indicates the size and value of a stock exchange.
Online References
- Shanghai Stock Exchange Official Website: The official site of the SSE offers comprehensive information on market data, regulations, and recent updates.
- Investopedia - Shanghai Stock Exchange Definition: Detailed definition and information about the SSE.
- China Securities Regulatory Commission (CSRC) Official Website: Information about the regulatory framework governing Chinese stock exchanges.
Suggested Books for Further Studies
- “Red Capitalism: The Fragile Financial Foundation of China’s Extraordinary Rise” by Carl E. Walter and Fraser J. T. Howie: An insightful book on the financial evolution in China, including stock exchanges like the SSE.
- “The Chinese Stock Market Volume I: A Retrospective of China’s Bourses Pre-WWII” by Mike Sturlese: Provides historical background on Chinese stock exchanges.
- “China’s Stockmarkets: A Guide to the World’s Hottest Markets” by Daryl Guppy: A comprehensive guide to understanding the structure and functioning of the Chinese stock markets.
Accounting Basics: “Shanghai Stock Exchange (SSE)” Fundamentals Quiz
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