The resuscitation of Shanghai as a market began with the economic reforms introduced in 1992. The city’s bourse (the Shanghai Stock Exchange, or SSE) is a no-profit organization governed directly by the “China Securities Regulatory Commission (CSRC)”.

The SSE provides all the services of a modern financial market, arranging for localization and trading services, establishing regulations, managing listings and monitoring trading and organizing and providing market news. Orders are handled electronically by a system that can do over 8,000 transactions a second (precedence of price and entry time) which are compensated by the clearing house.
After several years of full operation, the SSE has become the most important financial market in China in terms of both number of listed companies and of shares bonds and other securities traded. A great many companies have not only raised the capital needed to fund growth but have also developed their business systems by virtue of trading on a regulated market.
At the end of 2005, the SSE had 152 brokers, of which 37 foreign operators authorized to invest directly in the market. The value traded in 2005 was CNY 5.0 tr.
The biggest listed companies (by market capitalization) as of December 2005 were China Petroleum and Chemical Corp., Baoshan Iron &steel Co. Ltd, China Merchant Bank Co. Ltd., China United Telecommunications Co. Ltd., China Yangtze Co. Ltd., Huaneng Power international Inc., Pudong Development Bank, China Minsheng Banking Co. Ltd., Shanghai International Airport Co. Ltd., Jiangsu Expressway Co. Ltd.
The main indexes are the SSE 50 and the SSE 180, comprising, respectively, 50 and 180 blue chips selected from amongst “A shares” reserved exclusively for Chinese investors.
Financial products traded include shares (A e B), mutual funds, ETF, warrants, treasury bonds, financial bonds, corporate bonds, convertible bonds e bond repos. Foreign investors are excluded from trading in “A” shares, while only foreign investors are allowed to trade in “B” shares.
The market Authority recently announced that China would allow Chinese banks and institutional investors in general to buy shares abroad. So for the first time, international markets will see part of the CNY 35,000 billion (nearly €3,400 billion) saved by Chinese families. One of the first beneficiaries of this reform will be the Hong Kong market, which could become a centre for small investors, for whom H shares (securities listed in Hong Kong but issued by Chinese companies) might ensure greater trading liquidity than in the country’s other two biggest markets, Shanghai and Shenzen.

Dalian Commodity Exchange
The DCE is a no-profit organization, it too under the control of the “China Securities Regulatory Commission (CSRC)”. Founded in 1993, it is one of the country’s three futures markets, with the Shanghai Futures Exchange and the Zhengzhou Commodity Exchange.
The DCE has become the world’s biggest “non-GMO soybean futures” market, topping CNY 4.7 tr (2005) across the various types.

Shanghai Stock Exchange
528 Pudong Road South 200120
People’s Republic of China
Telephone +86 216 880 0006
Email: zgliao@sse.com.cn
Website: www.sse.com.cn