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8/10/2019 Shanghai StoCK Exchange.pptx
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SHANGHAI STOCKEXCHANGE
Su
Rachit Arora(0
Hemant Aggarwal(0
Nitish Bhanot(0
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INTRODUCTION
The Shanghai Stock Exchange (SSE) is based in the city of Sh
China.
It is one of the two stock exchanges operating independently in
Republic of China.
The other is the Shenzhen Stock Exchange.
SSE is the world's 6th largest stock market by market capitaliza
US$2.3 trillion as of Dec 2011.
Unlike the Hong Kong Stock Exchange, the Shanghai Stock Ex
not entirely open to foreign investors due to tight capital accoun
exercised by the Chinese mainland authorities.
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HISTORYThe formation of the International Settlement in Shanghai was the result of the T
1842
Subsequent agreements between the Chinese and foreign governments were crdevelopment of foreign trade in China and of the foreign community in Shangha
The market for securities trading in Shanghai begins in the late 1860s.
The first shares list appeared in June 1866
Then Shanghai's International Settlement had developed the conditions conduci
emergence of a share market.
Several banks, a legal framework for joint-stock companies, and an interest in d
among the established trading houses.
In 1891 during the boom in mining shares, foreign businessmen founded the "Sh
Sharebrokers' Association" headquartered in Shanghai as China's first stock exc
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CONTD. In 1904 the Association applied for registration in Hong Kong under the prov
Companies ordinance and was renamed as the "Shanghai Stock Exchange
The supply of securities came primarily from local companies. In the early da
dominated private shares but, by 1880, only the Hong Kong and Shanghai lo
remained.
Later in 1920 and 1921, "Shanghai Securities & Commodities Exchange" an
Chinese Merchant Exchange" started operation respectively.
An amalgamation eventually took place in 1929, and the combined markets
thereafter as the Shanghai Stock Exchange.By the 1930s, Shanghai had emerged as the financial centre of the Far East
Where both Chinese and foreign investors could trade stocks, debentures, g
bonds, and futures.
The operation of Shanghai Stock Exchange came to an abrupt halt after Jap
troops occupied the Shanghai International Settlement on December 8, 194
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CONTD..
In 1946, Shanghai Stock Exchange resumed its operations before closing ag
later in 1949, after the Communist revolution took place.
After the Cultural Revolution ended and Deng Xiaoping rose to power, China
opened to the outside world in 1978.
During the 1980s, China's securities market evolved in tandem with the coun
economic reform and opening up and the development of socialist market ec
During the 1980s, China's securities market evolved in tandem with the coun
economic reform and opening up and the development of socialist market ec
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TYPES OF SECURITIES
The SSE is composed of several types of stocks
A-shares ffor Chinese domestic investor and are denominated in Renminbi(
Legal shares : A type of A-share designated for companies to buy
State Shares : Hold by the Government(which also owns the companies so
Government also owns legal shares)
B shares : can be purchased by holders of foreign passport(including Hong
are denominated in U.S Dollars in December 1998.B shares had a combine
4.37 billion
N-Shares and L-Shares : Chinese enterprise listed on the New York and Lon
exchange
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LISTING REQUIREMENT
An issuer that applies to SSE for listing its IPO shares shall meet the followi
conditions:
1. Its shares have been issued to the public with the approval of the CSRC;
2. Its total amount of share capital shall not be less than RMB 50 million;
3. Its shares issued to the public account for 25% or more of its total shares;
issuer whose total share capital exceeds RMB 400 million, the aforesaid per
shall be 10%;
4. It has not committed any serious illegal act and there has been no falseho
financial reports in the most recent 3 years
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MAREKT OVERVIEW
In 2012, the total turnover on SSE was RMB 54753.523 billion, up 20.43% y
Stock transactions were RMB 16454.501 billion, representing 30.05% of the
turnover. Bond transactions hit RMB 37981.885 billion, accounting for 69.37
total turnover.
Fund transactions reached RMB 317.136 billion, making up 0.58% of the tot
average daily stock transactions were RMB 67.714 billion, down 30.45% yea
daily bond transactions stood at RMB 156.304 billion, 80.99% higher than a daily fund transactions hit RMB 1.305 billion, up 9.76% from the previous ye
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CONTD
SSE 50 Index opened the year at 1628.17 points and gained 14.84% to clos
1857.68 points after touching a yearly high of 1877.43 points and a yearly lo
points. SSE 180 Index opened the year at 5043.26 points and gained 10.80
the year at 5550.09 points after touching a yearly high of 5808.99 points and
of 4596.73 points.
SSE Composite Index opened the year at 2211.99 points and fell 21.68% to
year at 2269.13 points after making a yearly high of 2478.38 points and a ye
1949.46 points, with a volatility of 3.17%.
By the end of 2012, SSE recorded a total of 109.7 million trading accounts.
As of February 2008, 861 companies were listed on the SSE and the to SSE reached RMB 23,340.9 billion (US$3,241.8 billion; US$1 = RMB 6.82).
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MARKET PERFORMANCE
Data updated on 18 February 2008
Stock listingsMarket value
(billion yuan)
Annua
(b
A shares 850 26,849.7 30,196.0
B shares 54 134.2 347.4
Total 904 26,983.9 30,543.4
As of February 2008, 861 companies were listed on the SSE and the to SSE reached RMB 23,340.9 billion (US$3,241.8 billion; US$1 RMB 6.82).
http://en.wikipedia.org/wiki/Renminbihttp://en.wikipedia.org/wiki/Renminbi8/10/2019 Shanghai StoCK Exchange.pptx
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MARKET HIGHLIGHTS
No. of listed companies - 954
No. of listed securities - 2098
No. of listed stocks - 998
No. of new listings -26
Share capital issued (100 million shares) - 24617.62
Tradable shares (100 million shares) - 19521.34
Total market capitalization (RMB100 million) - 158698.44 Market capitalization of tradable shares (RMB100 million) - 134294.45
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SSE TOP 10 LARGEST STOCKS
PetroChina(3,656.20 billion)
Industrial and Commercial Bank of China(1,417.93 billion)
Sinopec(961.42 billion)
Bank of China(894.42 billion)
China Shenhua Energy Company(824.22 billion)
China Life(667.39 billion)
China Merchants Bank(352.74 billion)
Ping An Insurance(272.53 billion)
Bank of Communications(269.41 billion)
China Pacific Insurance(256.64 billion)
http://en.wikipedia.org/wiki/PetroChinahttp://en.wikipedia.org/wiki/Industrial_and_Commercial_Bank_of_Chinahttp://en.wikipedia.org/wiki/Sinopechttp://en.wikipedia.org/wiki/Bank_of_Chinahttp://en.wikipedia.org/wiki/China_Shenhua_Energy_Companyhttp://en.wikipedia.org/wiki/China_Lifehttp://en.wikipedia.org/wiki/China_Merchants_Bankhttp://en.wikipedia.org/wiki/Ping_An_Insurancehttp://en.wikipedia.org/wiki/Bank_of_Communicationshttp://en.wikipedia.org/wiki/China_Pacific_Insurancehttp://en.wikipedia.org/wiki/China_Pacific_Insurancehttp://en.wikipedia.org/wiki/Bank_of_Communicationshttp://en.wikipedia.org/wiki/Ping_An_Insurancehttp://en.wikipedia.org/wiki/China_Merchants_Bankhttp://en.wikipedia.org/wiki/China_Lifehttp://en.wikipedia.org/wiki/China_Shenhua_Energy_Companyhttp://en.wikipedia.org/wiki/Bank_of_Chinahttp://en.wikipedia.org/wiki/Sinopechttp://en.wikipedia.org/wiki/Industrial_and_Commercial_Bank_of_Chinahttp://en.wikipedia.org/wiki/PetroChina8/10/2019 Shanghai StoCK Exchange.pptx
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GOOD PLACE TO INVEST
40 qualified Foreign Institutional Investors(QFII),with combined investment worth U
66% of the listed companies at SSE have commenced share reform, which involveoverall market capitalization value
The introduction of Qualified Domestic Institutional Investors(QDII) scheme will furtChina capital market development
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OVERVIEW
Total capital raised (RMB100 million)
A Shares (RMB) - 2890.31
B Shares (US dollar) - 0
Transactions
Number of trading days - 243
Annual turnover value (RMB100 million) - 547535.23
Stock - 164545.01
Fund - 3171.36
T-bonds - 379818.85
Warrants - 0
Others - 0
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CONTD
Average daily turnover value (RMB100 million) -2253.23
Average daily stock turnover value (RMB100 million) -677.14
Annual stock turnover volume (100 million shares) -18948.94
Average daily stock turnover volume (100 million shares) -77.98
Total number of stock trades (10,000 deals) -92554.96
Average number of daily stock trades (10,000 deals) -380.89
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CONTD
Stock Indices
o SSE 180 Index yearly high -7149.05
o SSE 180 Index yearly low - 4852.71
o SSE 180 Index year-end close -5009.29
o SSE Composite Index yearly high -3067.46
o SSE Composite Index yearly low -2134.02
o SSE Composite Index year-end close -2199.42
Ratios
oAverage P/E ratio -12.30
o Turnover rate 1 (market capitalization)(%) -78.57
o Turnover rate 2 (free-float capitalization)(%) -101.60
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