Shenzhen Stock Exchange (SZSE)
What Is Shenzhen Stock Exchange (SZSE)?
The Shenzhen Stock Exchange (SZSE) is one of two main stock exchanges operating autonomously in mainland China. The other exchange is the Shanghai Stock Exchange (SSE). The Shenzhen Stock Exchange (SZSE) is a self-regulated legal entity under the supervision of the China Securities Regulatory Commission (CSRC). The main elements of the Shenzhen Stock Exchange (SZSE) are to supervise securities trading, give the facilities to securities trading, and devise operational rules.
Understanding the Shenzhen Stock Exchange (SZSE)
The Shenzhen Stock Exchange (SZSE) was established on Dec. 1, 1990. It is located in Shenzhen, a modern city in southeastern China. The skyscraper building where the Shenzhen Stock Exchange (SZSE) is located is in the Futian District. Its construction was started in 2008 and completed in 2013. The building is 806 feet tall and has 49 stories.
The Shenzhen Stock Exchange (SZSE) is the world's eighth-largest stock exchange by market capitalization, with a market capitalization of $3.90 trillion in July 2021. It has trading meetings four hours a day and five days seven days, Monday through Friday from 9:15 a.m. to 11:30 a.m. and 1 p.m. to 3 p.m. Its products incorporate A-shares, B-shares, indices, mutual funds, fixed income products, and diversified derivative financial products. Many of the companies listed on the exchange are subsidiaries of companies in which the Chinese government maintains a high level of control.
The Shenzhen Stock Exchange (SZSE) upholds China's multi-layered capital market system with three boards: the Main Board, the SME Board, and the ChiNext Market. The SME Board was established in May 2004 to serve companies with distinct businesses that are stable in profitability. Many of the ventures on this board are manufacturing companies. Thus, the SME Board is viewed as a barometer of the nation's manufacturing sector.
The ChiNext Market, established in October 2009, open to companies of all sizes that meet the listing criteria, but it centers around innovative growth companies and startups. These areas of innovation incorporate technology, management, and business models.
The Shenzhen Stock Exchange (SZSE) has marked a memorandum of understanding
(MOU) with 50 major stock exchanges and financial institutions across the world. It is a member of the World Federation of Exchanges (WFE) and the Asian and Oceanian Stock Exchanges Federation (AOSEF), and an affiliate member of the International Organization of Securities Commissions (IOSCO).
The Shenzhen Stock Exchange Versus the Shanghai Stock Exchange
Smaller and arising sector companies trade on the Shenzhen Stock Exchange (SZSE), and individual investors make up the majority of investors on the exchange. Larger, state-owned companies, for example, banks and energy firms, frequently trade on the Shanghai Stock Exchange (SSE), and the majority of investors who trade on this exchange are financial institutions, for example, banks and pension funds. Both exchanges were launched in 1990 in a work by the Chinese government to modernize the Chinese economy by opening it up to foreign investors.
Highlights
- The Shenzhen Stock Exchange (SZSE) is one of two main stock exchanges operating autonomously in mainland China.
- Smaller and arising sector companies trade on the Shenzhen Stock Exchange (SZSE), and individual investors make up the majority of investors on the exchange.
- The Shenzhen Stock Exchange (SZSE) is the world's eighth-largest stock exchange by market capitalization, with a market capitalization of $3.90 trillion in July 2021.
