Shanghai Stock Exchange

Review, Status Quo and Prospects of Shanghai Stock Exchange

Abstract: Shanghai Stock Exchange was founded in December 19th, 1990. In order to take the role of stock exchange into full play and lead health development of stock exchange, it is very necessary to have a correct understanding of the role of stock exchange. This paper describes the history and status quo of Shanghai Stock Exchange and makes a comparison between Shanghai Stock Exchange and other mature stock exchanges, thus preliminarily pointing out the role of Shanghai Stock Exchange and its future aims.

Key words: Shanghai Stock Exchange, trading system, IPO, stock exchange, laws and regulations

Contents:

I. Introduction of Shanghai Stock Exchange

II. Comparison of trading system of Shanghai Stock Exchange and other mature trading systems

III. IPO reform and changes of Shanghai Stock Market

IV. Gradual improvement of Securities laws and regulations

V. The Backgroud and future prospect of Shanghai Stock Exchange

VI. Conclusion

I. Introduction of Shanghai Stock Exchange

On December 19th, 1990, Shanghai Stock Exchange, the first stock exchange of new China, was founded. In 1992, Shanghai issued stock subscription certificates. The investors who purchased stock subscription certificates created the first wealth legend in China’s stock market. In the past 20 years, twists and turns are unable to prevent the rapid development in China’s stock market. Especially, after the reform of sub-owned shares in 2005, China's stock market ushered in another round of major development. Since 2007, the Shanghai stock market has expanded rapidly and has become one of the major markets in the Asia Pacific region. According to the SSE (Shanghai Stock Exchange) statistics for January to May, 2009, market value, business volume and raised capital in Shanghai stock market ranked the second, the first and the second respectively in Asia and ranked the sixth, the third and the eighth respectively in...