The Chinese Stockmarket by Rain

Chinese Stock Market chinese-stocks

  1. Shanghai Stock Exchange

Shanghai Stock Exchange is a stock exchange that is based in the city of ShanghaiChina. It is one of the two stock exchanges operating independently in the People’s Republic of China, the other being the Shenzhen Stock Exchange. Shanghai Stock Exchange is the world’s 5th largest stock market by market capitalization at US$3.5 trillion as of February 2016. Unlike the Hong Kong Stock Exchange, the Shanghai Stock Exchange is still not entirely open to foreign investors due to tight capital account controls exercised by the Chinese Mainland Authorities

The current exchange was re-established on November 26, 1990 after a 41-year hiatus and was in operation on December 19 of the same year. It is a non-profit organization directly administered by the China Securities Regulatory Commission (CSRC).

  1. Samples:

Petro China (1,750.3 billion)

Industrial and Commercial Bank of China (1,289.1 billion)

Agricultural Bank of China (1,090.9 billion)

Bank of China (813.0 billion)

China Life (711.1 billion)

China Petroleum & Chemical (592.4 billion)

Ping An Insurance (357.5 billion)

China Merchants Bank (342.2 billion)

China Shenhua Energy Company (334.6 billion)

Citic Securities (333.5 billion)

 3. Categories of shares:

   3.1  A- share

  • Companies register and go public in China mainland
  • Shares in mainland China-based companies that trade on Chinese stock exchanges such as the Shanghai Stock Exchange and the Shenzhen Stock Exchange. A-shares are generally only available for purchase by Chinese citizens including Hong Kong, Macao and Taiwan citizens (before 2014 only China mainland citizens can buy A-share); foreign investment is only allowed through a tightly-regulated structure known as the Qualified Foreign Institutional Investor (QFII) system

  3.2  B- share

  • Companies register and go public in China mainland
  • Shares in mainland China-based companies that trade on either the Shanghai or Shenzhen stock exchanges. B-Shares are eligible both for foreign investors and Chinese investors (before 2011 only foreigners can buy them). Shanghai B-shares trade in U.S. dollars, while Shenzhen B-shares trade in Hong Kong dollars.

 3.3  H- share

  • Companies register in mainland China but go public in Hong Kong,
  • A share of a company incorporated in the Chinese mainland that is listed on the Hong Kong Stock Exchange or other foreign exchange. H-shares are still regulated by Chinese law, but they are denominated in Hong Kong dollars and trade the same as other equities on the Hong Kong exchange.

4. Categories of Index:

   4.1  Shanghai securities composite index(SSC)

  • Counterpart: Dow jones
  • Samples: Petro China; Bank of China; Agricultural Bank of China

  4.2  Shanghai Shenzhen CSI 300 Index (SHSZ300)

  • Counterpart: S&P 500
  • Samples: China Merchants Bank; Agricultural Bank of China; China Petroleum & Chemical

  4.3  Growth Enterprise Index (GEI)

  • Counterpart: NASDQ

 

5. Trading Rules of A-share market

SH Stock Connect: securities traders, investment banks, financial institutions, individual (at least half million yuan in an account)

  Trading Rules of A share Market Trading Rules of SH Stock Connect
1. Tick size of quotation price of an order: RMB 0.01 Yuan
2. Board lot: 100 shares (for buy orders)   minimum
3. Maximum Order Size: 1 million shares
4. Daily Price Limit: General: ±10% (exclude H-share)

stocks under special treatment( ST and *ST shares): ±5%

Price limit=previous closing price×(1±price up/down limit percentage)

6. Stock code: six digits
7. Settlement cycle: T+1
8. Trading currency: RMB
9. Day trading × ×
10. Market orders(continuous auction) ×
11. Block trade   × 
12. Designated trading  ×

Trading Hours

SH Stock connect    Trading Hours HK Stock

Connect Trading Hours

Call Auction 9:15-9:25 Order input starts 5 minutes before each period Auction Session

 

9:00-9:30
Continuous Auction 9:30-11:30 ( 1.5h break) Continuous Trading Session 9:30-12:00 ( 1 h break)
13:00-15:00 13:00-16:00

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