Stocks Trading in Shanghai Stock Exchange

April 25th, 2011

Every day, the global economic condition is always changing. The value of the stocks is always changing. There are many factors related to the global economic changes. Inflation, war, terrorism, etc are some of them. Sometimes the value of the stocks reaches its highest point, but sometimes, it will reach its lowest point. China as one of the superior country in Asia has its own stock exchange. The stock exchange in China located in Shanghai is called Shanghai stock exchange or SSE. There are three main stock exchange companies in China. All of the stock exchange is operating independently under People’s Republic of China and what make SSE different is that it is not entirely opens to the foreign investors.

Shanghai Stock Exchange

Shanghai Stock Exchange

The capital account in Shanghai stock exchange is controlled by Chinese mainland authorities. Meaning to say, Chinese have the authority to control and trade for the stock and capital. Formerly, Shanghai stock exchange is called with Shanghai Sharebrokers Association and in 1904 it changed its name becomes SSE. China as one of superior country in Asia has an influence toward the global economic changes. The trading for the stocks and capital happens every day in China.

There are three main security sold in Shanghai stock exchange. Those kinds of security are stocks, bonds, and funds. There are two kinds of stocks that are issued in Shanghai stock exchange. It is “A” shares stocks and “B” shares stocks. Those kinds of stocks have their own characteristic. The “A” shares stock is priced in Yuan currency whereas the “B” shares stock is priced in Dollar. Trading “A” shares is restricted to the domestic investors whereas trading “B” shares is allowed both for domestic and foreign investors.

There are many largest stocks trading in Shanghai stock exchange. Some of them are Petro China, Industrial and Commercial Bank of China, Sinopec, Bank of China, China Life, etc. Knowing about SSE, we will know about the stock trading in China.


Tags: , , , , , , , , , ,