Sunday, July 13, 2014

China Stocks


    The Chinese stock market; the good...

    and the bad...


The Shanghai Stock Exchange (SSE) was founded on Nov. 26th,1990 and in operation on Dec.19th the same year. It is a membership institution directly governed by the China Securities Regulatory Commission(CSRC). The SSE bases its development on the principle of "legislation, supervision, self-regulation and standardization" to create a transparent, open, safe and efficient marketplace. The SSE endeavors to realize a variety of functions: 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; managing and disseminating market information.

After several years' operation, the SSE has become the most preeminent stock market in Mainland China in terms of number of listed companies, number of shares listed, total market value, tradable market value, securities turnover in value, stock turnover in value and the T-bond turnover in value. As at the end of 2012, there were 954 listed companies on SSE, with 26 new listings in 2012. By the end of the year, there were 998 listed stocks on SSE with a total market capitalization of RMB 15,869.844 billion, decreasing by 6.96% year-on-year, and free-float market capitalization of RMB 13,429.445 billion, up 9.31% from the previous year. The year-end total share capital of all the listed companies reached 2,461.76 billion shares, of which 1,952.13 billion shares or 79.30% were tradable. A large number of companies from key industries, infrastructure and high-tech sectors have not only raised capital, but also improved their operation mechanism through listing on Shanghai stock market. 


Constituent Periodical Review of SSE Corporate Bond 30 Index and others

SSE and CSI Grand Agriculture Index to be launched 2014-06-30

SSE Culture and Sport Leisure Index to be launched 2014-06-27

SSE Pledgable Urban Construction Investment Bond index to be launched 2014-05-25

SSE Mobile Internet Index CSI Transforming Growth Index to be launched 2014-06-19

Entering the new century, SSE is faced with great opportunities as well as challenges to further boost the market construction and regulation. Combining the cutting-edge hardware facilities,favorable policy conditions in Pudong, exemplary role of Shanghai economy, SSE is fully committed to the goal of State-owned industrial enterprises reform and developing Shanghai into an international financial center with great confidence.

In 2012, the total turnover on SSE was RMB 54753.523 billion, up 20.43% year-on-year. Stock transactions were RMB 16454.501 billion, representing 30.05% of the total turnover. Bond transactions hit RMB 37981.885 billion, accounting for 69.37% of the total turnover. Fund transactions reached RMB 317.136 billion, making up 0.58% of the total. The average daily stock transactions were RMB 67.714 billion, down 30.45% year-on-year; daily bond transactions stood at RMB 156.304 billion, 80.99% higher than a year earlier; daily fund transactions hit RMB 1.305 billion, up 9.76% from the previous year.

SSE 50 Index opened the year at 1628.17 points and gained 14.84% to close the year at 1857.68 points after touching a yearly high of 1877.43 points and a yearly low of 1528.28 points. SSE 180 Index opened the year at 5043.26 points and gained 10.80% to close the year at 5550.09 points after touching a yearly high of 5808.99 points and a yearly low of 4596.73 points. SSE Composite Index opened the year at 2211.99 points and fell 21.68% to finish the year at 2269.13 points after making a yearly high of 2478.38 points and a yearly low of 1949.46 points, with a volatility of 3.17%.

By the end of 2012, SSE recorded a total of 109.7 million trading accounts.



Speech by Song Liping, President and CEO of SZSE, at the Jinjialing Fortune Forum 2014 in Qingdao[2014-07-08]
SZSE Market Bulletin 7 July, 2014 (Issue 22)[2014-07-08]
SZSE Market Bulletin 30 June, 2014 (Issue 21)[2014-07-04]
Activate Existing Assets, Facilitate the Region Development[2014-06-26]
SZSE Market Bulletin 23 June, 2014 (Issue 20)[2014-06-24]
SZSE Issued Implementation Rules on Preferred Share Pilot Business[2014-06-20]
Companies Listed on the ChiNext Board Utilize in Micro-and-quick Refinancing Mechanism[2014-06-19]
ChiNext 50 Index Issued[2014-06-19]
SZSE Market Bulletin 16 June, 2014 (Issue 19)[2014-06-18]
Sample Adjustment of SZSE Component Index, SZSE SME Index and SZSE ChiNext Index[2014-06-16]
Power of Reform and Innovation: the New Economic Growth Point[2014-06-16]
SZSE Market Bulletin 9 June, 2014 (Issue 18)[2014-06-10]
SZSE Holds 5th “Trading Rules Day”, Focusing on Two-way Opening-up of the Capital Market and Pushing...[2014-06-10]
Serve the Innovative Enterprises, Push Forward the Transformation and Upgrading of Sponsor Business[2014-06-10]
Speech by Song Liping, President and CEO of SZSE, at the Forum on Promoting the Integration of Techn...[2014-06-05]
SZSE Select Index Issued[2014-05-30]
Speech by Song Liping, SZSE President & CEO, at the 4th Western China Hi-Tech Industry & Fin...[2014-05-29]
Quality of 2013 Information Disclosure of Companies Listed in SZSE Escalated as the ‘Express’ Advanc...[2014-05-28]
SZSE Market Bulletin 26 May, 2014 (Issue 17)[2014-05-28]
Stock Market Performance Report of Shenzhen Stock Exchange in 2013[2014-05-22]
SZSE Launched the First Exchange Traded REITs[2014-05-22]
SZSE Implement Pricing Block Trading after Trading Hour[2014-05-22]
SZSE Market Bulletin 19 May, 2014 (Issue 16)[2014-05-20]
Speech by Song Liping, SZSE President & CEO, at the Tsinghua PBCSF Global Finance Forum[2014-05-19]
SZSE Releases the Empirical Analysis of 2013 Annual Reports of Listed Companies[2014-05-12]
Supporting SMEs through Long-term Market-based Financing[2014-04-29]
SZSE Issued Rules on Securities Trading of QFII and RQFII[2014-04-25]
SZSE Market Bulletin 28 April, 2014 (Issue 14)[2014-04-29]
SZSE Market Bulletin 21 April, 2014 (Issue 13)[2014-04-23]
SZSE Held the 4th Session of Public Company Open House Program for Foreign Investors[2014-04-17]


1. What are the offering criteria for SZSE?
Under the Securities Law, a company applying for public offering of new shares shall meet the following requirements:
(1) It shall have a proper and well-operating organizational structure;
(2) It shall have sustainable profitability and sound financial position;
(3) In the past three years, there have been no falsehoods in its financial statements, and it has not committed any other serious illegal acts; and
(4) Other requirements prescribed by the securities regulatory authority approved by the State Council.

Apart from the above, enterprises seeking IPO should also meet other requirements prescribed by the CSRC. Those seeking IPO and listing on the Main Board (including the SME Board) should meet the relevant provisions of the Measures on the Administration of Initial Public Offerings and Listings of Shares issued by the CSRC on May 17, 2006, and those seeking IPO and listing on the ChiNext should meet the relevant provisions of the Interim Measures on the Ad



Chinese renminbi (Yuan) has become a powerful international currency