The Shanghai Stock Exchange

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What is ‘Shanghai stock exchange’

The Shanghai stock exchange (SSE) is the largest stock exchange in China. It is a non-profit organization in charge of the Chinese Commission on regulation of securities (csrc). Stocks, funds, bonds and derivatives are all traded on the exchange.

Breaking down the ‘Shanghai stock exchange’

At night, there are two main classes of stock for every listed company are traded on the stock exchange as shares and B-shares. B-shares are quoted in U.S. dollars and, as a rule, are open to foreign investment. -Shares are traded in RMB and available only to foreign investment with the help of professional program, known as QFII.

Chinese stocks are also traded on the Hong Kong stock exchange, which traded h-shares of Chinese companies for many years. These promotions are also open for foreign investment, and denominated in Hong Kong dollars (hkd).

A large total market capitalization of SSE consists of former public enterprises, as large commercial banks and insurance companies. Many of these companies are only traded on the stock exchange since 2001. GSP ranks fourth in the world in 2016 in terms of total market capitalisation on the stock exchanges of the shares, second only to the new York stock exchange, Nasdaq and the Tokyo stock exchange.

Requirements For Placement Of Shares

The company hopes to be listed on SSE shall meet the following requirements:

  • Must obtain the approval of the Commission
  • The total share capital of more than RMB (Renminbi) 50 million
  • The volume of publicly offered shares must be more than 25 percent of the total number of issued shares, if the total share capital of the company more than 400 million yuan, in this case, the percentage drops to 10 percent.
  • Have not committed any serious illegal acts or financial report fakes over the past three years
  • Reporting Requirements

    GSP provides that the companies listed on the stock exchange to prepare and disclose periodic reports within the time specified in laws, administrative regulations and various applicable rules. The annual report must be disclosed within four months after the end of each financial year, an interim report within two months after the end of the first half of each financial year and quarterly reports within one month of the end of the first three months and by the end of the first nine months of the fiscal year. It is also required that the first quarter will be disclosed no earlier than the annual report for the previous year.

    The company’s annual report must be audited qualification CPA firms in securities and futures-related business. GSP, as a rule, frees the company from having to check their interim and quarterly reports.

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