China’s-Stock-Markets

China’sStockMarkets•Inthe1990s,ShanghaiStockExchangeandShenzhenStockExchangehavebeenestablishedsuccessively.Sincethen,oursecuritiesmarkethasdevelopedrapidly,whichpromotesournationaleconomy.ShanghaiStockExchange•ShanghaiStockExchangeistheworld's5thlargeststockmarketbymarketcapitalizationatUS$2.3trillionasofDec2011.UnliketheHongKongStockExchange,theShanghaiStockExchangeisstillnotentirelyopentoforeigninvestorsduetotightcapitalaccountcontrolsexercisedbytheChinesemainlandauthorities.ShanghaiStockExchange•ThesecuritieslistedattheSSEincludethethreemaincategories(类别)ofstocks,bonds,andfunds.BondstradedonSSEincludetreasurybonds(T-bond),corporatebonds,andconvertiblecorporatebonds.SSET-bondmarketisthemostactiveofitskindinChina.ShanghaiStockExchange•TherearetwotypesofstocksbeingissuedintheShanghaiStockExchange:AsharesandBshares.•Asharesarepricedinthelocalrenminbiyuancurrency,whileBsharesarequotedinU.S.dollars.TheShenzhenStockExchange•TheShenzhenStockExchange(SZSE)isoneofthePeople'sRepublicofChina'stwostockexchanges,alongsidetheShanghaiStockExchange.ItisbasedinShenzhen,China.ThemarketcapitalizationofitslistedcompanieswasaboutUS$1trillionin2011.•Listedcompanies:730•Marketcapitalization:US$514.7billion(RMB3521745,3million)SZSEGoPublic•Whenacompanyreachesacertainstageinitsgrowth,itmaydecidetoissuestock,orgopublic.•Thegoalmaybetoraisecapital,toprovideliquidityfortheexistingshareholders,oranumberofotherreasons.GoPublic•Thecompany’stotalsharecapitalmustnotbelessthanRMB30million.•Thecompanymusthavebeeninbusinessformorethan3yearsandhavemadeprofitsoverthelastthreeconsecutiveyears.•China'stop50listedcompanieshavebeenunveiled,withSinopec,ChinaUnicomandBaoSteelTakingthefirstthreepositions.•Theappraisal,launchedbythemagazineListedCompany,isconductedfromfouraspects,includingtotalassets,income,netprofitandmarketvalue.•Thetotalassetsofthe50companiestotaled260billionUSdollarsbytheendoflastyear,accountingforhalfofallthenearly2,000companieslistedonShanghaiandShenzhenstockexchanges.•End