Shanghai Stock Exchange

What Is the Shanghai Stock Exchange (SSE)?

The Shanghai Stock Exchange (SSE) is the largest stock exchange in mainland China. It is a nonprofit organization run by the China Securities Regulatory Commission (CSRC). Stocks, funds, bonds, and derivatives are all traded on the exchange.

How the Shanghai Stock Exchange (SSE) Works

On the Shanghai Stock Exchange (SSE), there are two main classes of stock for each listed company traded on the exchange — A-shares and B-shares.

B-shares are quoted in U.S. dollars and are generally open to foreign investment. A-shares are quoted in yuan and are simply available to foreign investment through a qualified program known as [QFII](/qualified-foreign-institutional-financial backer qfii).

Chinese equities are also traded on the Hong Kong Exchange, which has been trading H-shares in Chinese companies for a long time. These equities are also open to foreign investment and are denominated in Hong Kong dollars (HKD).

A large portion of the total market cap of the SSE is made up of formerly state-run companies like major commercial banks and insurance companies. Many of these companies have just been trading on the exchange beginning around 2001. The SSE ranks fourth in the world in terms of total market cap for equity exchanges, behind just the NYSE, Nasdaq, and Tokyo Stock Exchange.

Requirements for the Shanghai Stock Exchange (SSE)

A company hoping to be listed on the SSE must meet the accompanying requirements:

1. The company must have gained the approval of the CSRC.
2. It must have a total share capital of more than RMB (renminbi) 50 million.
3. The amount of publicly-offered stock must be greater than 25% of total gave shares except if a company's total share capital is more than RMB 400 million, in which case the percentage is diminished to just 10%.
4. The company must not have committed any major illegal acts or financial report falsehoods throughout recent years.

The SSE expects that companies listed on the exchange prepare and unveil periodic reports within the time limit determined parents in law, administrative regulations, and various applicable rules.

The annual report should be uncovered within four months from the finish of each financial year, the interim report within two months of the finish of the main half of each financial year, and the quarterly report within one month from the finish of the initial three months and the finish of the initial nine months of the financial year. It is also required that the first-quarter report be unveiled no earlier than the annual report of the previous year.

The company's annual report must be audited by a qualifying CPA firm in the securities-and prospects related business. The SSE generally excludes companies from being required to audit their interim and quarterly reports.

Highlights

• The SSE expects that companies listed on the exchange prepare and reveal periodic reports within the time limit determined parents in law, administrative regulations, and various applicable rules.
• There are two main classes of stock for each company listed on the SSE — A-shares and B-shares.
• The Shanghai Stock Exchange (SSE) is the largest exchange in mainland China.
• A large portion of the total market cap of the SSE is made up of formerly state-run companies like major commercial banks and insurance companies.
• The SSE ranks fourth in the world in terms of total market cap for equity exchanges, behind just the NYSE, Nasdaq, and Tokyo Stock Exchange.