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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.

  1. B-Shares

    B-shares are equity share investments in companies based in China. ...
  2. China Securities Regulatory Commission ...

    The main securities regulatory body in China, which was created ...
  3. Qualified Foreign Institutional ...

    A program that permits certain licensed international investors ...
  4. Red Chip

    A company based in Mainland China that is incorporated internationally ...
  5. Graduated Security

    An equity security that has moved its listing from one stock ...
  6. Equity Market

    The market in which shares are issued and traded, either through ...
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  1. What are the differences between B-shares and H-shares traded on Chinese stock exchanges?

    Learn about B shares and H shares of publicly listed companies in mainland China and Hong Kong stock exchanges, and the differences ... Read Answer >>
  2. How does a company move from an OTC market to a major exchange?

    A number of conditions must be met for a company to move from being traded over-the-counter to being listed on the NYSE or ... Read Answer >>
  3. What are the rules behind the delisting of a stock?

    Find out the criteria for a company to remain listed on a stock exchange. Learn what actions would lead to a security being ... Read Answer >>
  4. Why are traders on the floor of the exchange?

    Before the advent of electronic trading platforms, the floor of the stock exchange was the location for market transactions ... Read Answer >>
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