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Latest News About China Stock Market

written by: Jason C. Chavis•edited by: Michele McDonough•updated: 4/21/2010

The China Stock Market is divided into three different exchanges, located in Shanghai, Shenzhen and Hong Kong. The latest news about China Stock Market performance and regulations detail changes to combat the global financial crisis.

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    Shanghai Stock Exchange

    Shanghai Stock Exchange Building 

    The Shanghai Stock Exchange (SSE) was created on November 26, 1990 and launched the following month. It is directly governed by the China Securities Regulatory Commission and represents the largest stock market in Mainland China, specializing in a variety of different securities, most notably treasury bonds. The SSE lists 1,184 different securities, representing 864 companies. Its full capitalization is RMB 9,725.191 billion, comprised from 79.7287 million different accounts. The overall purpose of the SSE is to raise capital for major industries and the high-tech sector in China. The market features 17 different indices, most notably the SSE 180, a composite of the 180 most popular stocks listed in the exchange.

    A regulatory body, the China Appraisal Society, helped establish updates to the laws and regulations of the SSE beginning in 2009. As of 2010, these changes are in full effect as the Special Analysis Report on Assets Appraisal in Listed Companies' Merger, Acquisition and Reorganization. This establishes a system of supervised asset appraisals and overall functions of the marketplace. Much of the time when investment agencies supply the latest news about China Stock Market facts and figures, they are referring to the SSE.

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    Shenzhen Stock Exchange

    The Shenzhen Stock Exchange (SZSE) features 540 listed companies and 177 members, facilitating a trading network of roughly 35 million investors. It was created in 1990 with oversight by the China Securities Regulatory Commission. As of 2010, the estimated market capitalization for the SZSE is around RMB 1 trillion (US$ 122 billion), trading about 600,000 securities each day, with a value of US $807 million. Since the financial crisis of 2008, an effort within the market to establish new laws and regulations is primary initiative. Additionally, the focus of the SZSE within the larger Chinese Stock Market is a strong emphasis on small and medium enterprises.

    According to the SZSE website, the largest event as of 2010 is the establishment of the SME Board 300 index, launched on March 22. This is an index featuring 300 of the top small and medium enterprises from the SZSE. The top three industries in China represent 41 percent of the index, with a weighted concentration in the top 10 stocks of eight percent.

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    Hong Kong Stock Exchange

    The Stock Exchange of Hong Kong Limited (HKEx) was established in 2000 after the reintegration of the city into the Chinese community. It is overseen by the Hong Kong Securities Clearing Company Limited. The major focus of the marketplace is to provide a way for Chinese investors to deal in international securities by attracting listing for companies around the world. To ensure proper oversight and regulatory activities are in place, the market is run by a board of directors which makes decisions and implements changes.

    In response to the global financial crisis beginning in 2008, the HKEx implemented a number of changes. The early 2010 changes focused primarily on the futures and options market. In April, the board of directors revised the margins for the Bank of China Futures, Swire Pacific A Futures and Options and Henderson Land Futures. In addition, it censured Alltronics Holding Limited for a breach in exchange rules. All special dividends for 2003 were officially forfeited as of April 14 as well.

    The latest news about China Stock Market statistics and figures can be seen on the following sites. Each site is updated daily.

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    Image Source

    Shanghai Stock Exchange Building. (Supplied by Baycrest at Wikimedia Commons; Creative Commons 2.5 Attribution;