Shanghai StoCK Exchange.pptx

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/Renminbi


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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/PetroChina


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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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Documents

Shanghai StoCK Exchange.pptx