There are three stock exchanges that regulate and control the China share market. Shanghai Metal Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange are the three exchanges of China share market among which Shanghai Stock Exchange is the eighth largest in the world.
China Stock Exchanges
China share market is largely governed by the swinging indices of 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 the Mainland China. Shanghai stock exchange is a non-profit organization controlling the ups and downs of the China share market and China Securities Regulatory Commission administers it directly. There are 842 companies listed with Shanghai Stock Exchange 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, the foreign companies now can trade in China, though with some limitations.
Shenzhen Stock exchange is another China stock exchange located in Shenzhen in China. The combined market capitalization of SSE and Shenzhen Stock Exchange is US$500 billion as of 2005 and they list more than 1200 companies when combined. In 2003, the central government of China decided to shut down the trading both in Shanghai Stock Exchange and Shenzhen Stock Exchange in order to fight against the Severe Acute Respiratory Syndrome or commonly known as SARS.
The Shanghai Metal Exchange (SHME) is the futures exchange in China and it was established in the year of 1992. In order to trade the non-ferrous metals including copper, lead, aluminum, nickel, tin and zinc, the Shanghai Metal Exchange was created.
China Share Market Trends
The Chinese government takes a controlling interest in the share market trends of China. The trading in the share market of China has become much easier than before following a development in the electronic and Internet field. Now with Internet availability at every corner of the world, people can register and invest in China share market more easily than before with more and more new traders joining the market. The trading in China share market has increased immensely due to a continuous leap in the number of new traders in China share market. The trend of increase in the new traders can be estimated from confidence index of China share market.