|
Chinese mainland currently has two stock exchanges, as well as several commodity futures exchanges. As investor interest increases, these bourses will continue to grow in importance and market share. Below we profile the main exchanges on the mainland.
Shanghai Stock Exchange
The Shanghai Stock Exchange was founded in 1990 and is the largest stock market on the mainland. In terms of market capitalization, it ranks fifth in the world.
Shanghai
Population 18.45 million
GDP ($) 171.5 billion
GDP per capita ($) 9,298
Stock market established 1990
Market capitalization ($) 3.85 trillion
Number of listed companies 864
There are three main categories of securities listed on the Shanghai Stock Exchange: stocks, bonds and funds. Bonds traded on the exchange include treasury bonds, corporate bonds and convertible corporate bonds. The Shanghai Stock Exchange issues two types of stocks: A shares, priced in renminbi; and B shares, priced in U.S. dollars. A shares have historically been only available to domestic investors while B shares were initially only available for foreign investors. Since 2002, however, foreign investors have been able, with limitations, to trade in A shares under the Qualified Foreign Institutional Investor system. The exchange plans to eventually merge the two types of shares.
Website: www.sse.com.cn
Shenzhen Stock Exchange
Shenzhen
Population 12 million
GDP ($) 96.6 billion
GDP per capita ($) 10,628
Stock market established 1990
Market capitalization ($) 122 billion
Number of listed companies 540
The Shenzhen Stock Exchange is a mutualized national stock exchange under the China Securities Regulatory Commission that provides a venue for securities trading to a broad spectrum of market participants, including over 500 listed companies, 35 million registered investors and 200 or so exchange members.
The Shenzhen Stock Exchange launched a Small and Medium-sized Enterprises Board in 2004, creating a market exclusively for small and medium-sized enterprises (SMEs in China account for more than 90 percent of China's total companies and contribute more than half of its GDP).
Website: www.szse.cn
Zhengzhou Commodity Exchange
Founded on October 12, 1990, the Zhengzhou Commodity Exchange became China's first commodities futures market. Initially trading cash forward contracts only, the market began futures trading in 1993. Today, future contracts are traded on wheat, cotton, white sugar, mung beans, peanut kernel, pure terephthalic acid and rapeseed oil.
Website: www.czce.com.cn
Shanghai Futures Exchange
After the merge of three exchanges-the Shanghai Metal Exchange, the Shanghai Commodity Exchange and the Shanghai Cereals and Oils Exchange-the Shanghai Futures Exchange began operations in May 1999. Contracts are traded for copper, aluminum, zinc, gold, natural rubber and fuel oil.
Website: www.shfe.com.cn
Dalian Commodity Exchange
The Dalian Commodity Exchange was established in February 1993 and futures trading was launched later that year in November. Currently, this market is the largest futures exchange by volume on the mainland. Futures contracts are traded on soybeans, soybean meal, soybean oil, corn, linear low-density polyethylene, RBD palm oil and malting barley.
Website: www.dce.com.cn
China Financial Futures Exchange
The newest addition to the Chinese futures market, the China Financial Futures Exchange was founded in 2006 by the mainland's three commodity exchanges and two stock exchanges. While no launch date has been announced yet, the proposed electronic market has already amassed a sizeable roster of approved general clearing members, trading and clearing members, and trading members.
Website: www.cffex.com.cn | 
