Shanghai Stock Exchange: An Overview
The two major current stock exchanges in mainland China include Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE). The Shanghai Stock Exchange is the 4th largest stock market by market capitalization in the world as of April 2018. Different from Hong Kong Stock Exchange, it is not entirely open to foreign investors and often manipulated by the decisions of the central government. As a non-profit organization it is directly administered by the China Securities Regulatory Commission (CSRC).
There are two types of stocks being issued in the Shanghai Stock Exchange: “A” shares and “B” shares. A shares are priced in the local RMB yuan currency while B shares are quoted in U.S. dollars. Initially, trading in A shares is restricted to domestic investors only while B shares are available to both domestic (since 2001) and foreign investors. However, after December 2002, foreign investors are now allowed with limitations to trade in A shares under the Qualified Foreign Institutional Investor (QFII) program officially launched in 2003.
The SSE is open for trading every Monday to Friday. The morning session begins with centralized competitive pricing from 9:15 to 9:25, and continues with consecutive bidding from 9:30 to 11:30. This is followed by the afternoon consecutive bidding session, which starts from 13:00 to 15:00. The market is closed on Saturday and Sunday and other holidays announced by the SSE. The SSE is housed at the Shanghai Securities Exchange Building since 1997.
Shenzhen Stock Exchange: Features and Operations
The Shenzhen Stock Exchange is another one of two stock exchanges operating independently in the People’s Republic of China. It is the 8th largest stock exchange in the world, and the 4th largest in East Asia. Its building is a skyscraper with a height of 245.8 metres and 49 floors, which was designed by Rem Koolhaas’s firm.
The SZSE has pre-market sessions from 9:15 to 9:25 and normal trading sessions from 9:30 to 12:30 and 13:00 to 15:00 on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.
