Shanghai Stock Exchange

Loading the player...

DEFINITION of 'Shanghai Stock Exchange'

The largest stock exchange in mainland China, the Shanghai Stock Exchange is a nonprofit organization run by the China Securities Regulatory Commission (CSRC). Stocks, funds and bonds are all traded on the exchange, which has listing requirements including that a company must be in business and be earning a profit for at least three years before joining the exchange.

BREAKING DOWN 'Shanghai Stock Exchange'

Two main classes of stock for every listed company are traded on the exchange: A-shares and B-shares. B-shares are quoted in U.S. dollars, and are generally open to foreign investment. A-shares are quoted in yuan, and are only available to foreign investment through a qualified program known as QFII.

The largest stock exchange for Chinese equities is actually the Hong Kong Exchange, which has been trading H-shares in Chinese companies for many years; these equities have also been open to foreign investment. Most of the total market cap of the Shanghai Stock Exchange is made up of formerly state-run companies like major commercial banks and insurance companies. Many of these companies have only been trading on the exchange since 2001.

RELATED TERMS
  1. A-Shares

    Shares in mainland China-based companies that trade on Chinese ...
  2. H-Shares

    A share of a company incorporated in the Chinese mainland that ...
  3. Bahrain Stock Exchange - BSE

    The stock exchange headquartered in Manama, Bahrain. Bahrain ...
  4. Red Chip

    A company based in Mainland China that is incorporated internationally ...
  5. B-Shares

    Shares in companies based in mainland China that trade on either ...
  6. Bolsa Boliviana de Valores - BBV

    A stock exchange located in La Paz, Bolivia. Bolsa Boliviana ...
Related Articles
  1. Investing Basics

    Learning About the Shanghai Stock Exchange

    The Shanghai Stock Exchange is mainland China’s largest stock exchange.
  2. Entrepreneurship

    Top 3 Billionaires Living In Shanghai

    Learn interesting facts about some of the nearly 100 billionaires who reside in Shanghai, the financial markets' center of China, as of 2015.
  3. Stock Analysis

    The 6 Biggest Chinese Energy Companies (SNP, 1088.HK)

    Read about the six companies atop the Chinese energy industry as measured by consolidated revenue, and learn more about their energy operations.
  4. Investing Basics

    5 Tips For Investing In IPOs

    Thinking of investing in IPOs? Here are five things to remember before jumping into these murky waters.
  5. Investing Basics

    Investing In China

    Investment opportunity is huge in China. However, investors should consider the pitfalls, understand the risks and rewards, focus on shareholder-friendly companies and stick to investments they ...
  6. Investing Basics

    A Look At Primary And Secondary Markets

    Knowing how the primary and secondary markets work is key to understanding how stocks trade.
  7. Investing News

    What Does the Fire Monkey Mean for Your Portfolio?

    The Chinese new year this year corresponds to the monkey, a quick-witted, playful, tricky figure that means well but has a penchant for causing trouble.
  8. Fundamental Analysis

    Is Brazil Currently in a Depression?

    Find out if Brazil, the world's seventh-largest economy, may have finally slipped into an economic depression, and learn the reasons why.
  9. Stock Analysis

    3 Reasons to Invest in Frontier Markets in 2016

    Learn why investing in frontier markets will be a great long-term investment as these markets grow in ways that will propel them to success in the future.
  10. Investing News

    Brazil's Latest Export To China: Soccer Players

    Why are Brazilian soccer players moving to China?
RELATED FAQS
  1. What are the differences between B-shares and H-shares traded on Chinese stock exchanges?

    Equity listings in China generally fall under three primary categories: A shares, B shares and H shares. B shares represent ... Read Full Answer >>
  2. Why is the Nasdaq more volatile than the NYSE?

    The Nasdaq exchange does tend to regularly evidence more volatility than its major competitor, the New York Stock Exchange ... Read Full Answer >>
  3. Which day is known as China's "Black Tuesday" and why?

    On February 27, 2007, the Chinese stock market suffered a correction, causing choppy markets all over the world. The Shanghai ... Read Full Answer >>
  4. Is China a developed country?

    Despite having the world's second-largest economy and third-largest military, China is still, as of 2015, not classified ... Read Full Answer >>
  5. Is Malaysia a developed country?

    Despite undergoing rapid economic development over the past five decades, Malaysia is not considered a developed country, ... Read Full Answer >>
  6. How do mutual funds work in India?

    Mutual funds in India work in much the same way as mutual funds in the United States. Like their American counterparts, Indian ... Read Full Answer >>
Hot Definitions
  1. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  2. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  3. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
  4. Dark Pool Liquidity

    The trading volume created by institutional orders that are unavailable to the public. The bulk of dark pool liquidity is ...
  5. Godfather Offer

    An irrefutable takeover offer made to a target company by an acquiring company. Typically, the acquisition price's premium ...
Trading Center