The Shanghai Stock Exchange, often abbreviated as SSE, is the stock exchange based in the Chinese city of Shanghai. There are a total of three stock exchanges that function in the People’s Republic of China, including the Hong Kong Stock Exchange and the Shenzhen Stock Exchange. The Shanghai Stock Exchange does not currently permit full participation by foreign investors because of the strict capital account controls that are administered by Chinese government officials.
Chinese stock exchanges presently express a strong preference to have only Chinese firms listing with them, which is somewhat similar to the preferences seen in the Indian stock exchange markets. There has been some speculation, however, that China may expand and open their markets to foreign companies sometime during the year 2010.
The Shanghai Stock Exchange began its official operations after re-establishment in December of 1990, and the exchange is administered by the China Securities Regulatory Commission (CSRC).
Chinese companies that wish to have their shares listed on the Shanghai Stock Exchange must meet specific qualifications in order to be considered eligible. These include, among many others:
- The company’s total share capital must be no less than RMB 30 million.
- The company must have been in business more than three years, and must have been profitable over each of the past three years, as well.
- The company must not have submitted any falsified accounting records, or engaged in any major illegal activities, during the past three years.