Most of the countries operate stock exchanges to trade or invest. Some of them are emerging and some are developed. China has a stock exchange named, ‘Shanghai stock exchange’.

There is another stock exchange governed by China and it’s name is ‘Shenzhen stock exchange’. The China share market is the fifth biggest one in the world.

The Shanghai or China stock exchange was set up in the year 1990. The headquarters of this China stock market is located in Shanghai city. The China stock market is administered by the ‘China securities regulatory commission’.

The world’s largest IPO [Initial public offering] up to date is Agricultural bank of China and it is listed on the China stock market. The biggest or top five largest stocks on the Chinese stock market [in terms of market capital] are:

1. Petrochina – This is a Chinese oil company with a market capital of 1.78 trillion Chinese Yuan.

2. Industrial and commercial bank of China – This is the largest industrial bank in China with a market capital of 1.39 trillion.

3. Sinopec

4. Bank of China – This is a China based commercial bank with a market capital of 795 billion.

5. China Shenhua energy company – This is an integrated energy company with a market capital of 515 billion.

A stock exchange is the one in which a company lists it’s shares or stocks in order to raise capital or funds, etc. Most countries operate stock exchanges on which the traders or investors could trade or invest in some particular shares.

Companies which want to raise capital, sell their shares, increase their presence, dilute their stake, etc. will come out with open offers or list their stock or shares in the exchange.

There are two types of markets. One is developed markets and the second one is emerging markets. The developed economies in the world have developed markets and as is the case with emerging or developing markets.

The emerging or developing markets tend to have a high beta than the developed markets. The Shanghai stock exchange suits in to emerging markets category.

The Shanghai stock market gives access to three types of securities and those are Stocks, bonds and funds.

The domestic currency of ‘China’ is ‘Rinminbi Yuan’. The stocks which are listed on China share market are traded by two means.

The first one is traded through the domestic currency of China, and that is through ‘Rinminbi Yuan’. These are called A-shares and QFII’s [] Qualified foreign institutional investors are allowed to invest in these shares. The total A-shares listed are 850.

The second one is purely meant for the foreign investors and these shares are traded in US Dollars. These shares are purely for foreign investors, doesn’t mean that these shares couldn’t be accessed by Chinese investors or traders.

Chinese traders and investors can also participate in these shares. This type is called B-shares. The total B-shares listed are 54.

The bond market in China is also quite active. Treasury bonds, corporate bonds and convertible corporate bonds can be traded on the exchange.

Tags: bank of china, Buying, capital, China share market, IPO, Listing, petrochina., selling, Shanghai, Shares, stocks

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