China Share Market

There are three stock exchanges that regulate and control the China share market: Shanghai Metal Exchange, Shanghai Stock Exchange, and Shenzhen Stock Exchange.

China Stock Exchanges

The China share market is largely governed by the swinging indices of The Shanghai Stock Exchange (SSE). It is the eighth largest stock exchange in the world ,with market capitalization of US $1.7 trillion and is the largest located in mainland China. SSE is a non-profit organization controlling the ups and downs of the China share market and is directly administered by the China Securities Regulatory Commission. There are 842 companies listed with SSE, and stocks, bonds and funds are the three security categories that are traded in the SSE. After some reforms implemented in December, 2002 under the Qualified Foreign Institutional Investor system, foreign companies can now trade in China, with some limitations.

The Shenzhen Stock exchange is another China stock exchange, located in Shenzhen, China. The combined market capitalization of SSE and the Shenzhen Stock Exchange is US $500 billion as of 2005 and they list more than 1200 companies. In 2003, the central government of China decided to shut down trading in the Shanghai Stock Exchange and the Shenzhen Stock Exchange in order to fight Severe Acute Respiratory Syndrome, commonly known as SARS.

The Shanghai Metal Exchange (SHME) is the futures exchange in China and was established in 1992, In order to trade non-ferrous metals including copper, lead, aluminum, nickel, tin, and zinc.

China Share Market Trends

The Chinese government takes a controlling interest in Chinese share market trends. Trading in the Chinese share market has become much easier than before, following a development in the electronic and Internet field. Now with Internet availability in every corner of the world, people can register and invest in the Chinese share market more easily than before; as a result, there are more and more new traders joining the market. Trading in the Chinese share market has increased immensely due to a this tremendous leap in the number of traders.