shenzhen stock exchange

The Shenzhen Stock Exchange

The progress of Shenzhen city over the years has indeed contributed to China’s development and commendable position as one of the top economies in the world. Apart from Shenzhen’s impressive development in technology, and all the other wonderful achievements she has made to become one of China’s top cities, Shenzhen, is also home to the Shenzhen Stock exchange (SZSE) – the 8th largest stock exchange in the world.

What is the Shenzhen Stock Exchange (SZSE)

The history of the SZSE dates back to the 1980s, but its formal establishment was in 1990.

The SZSE is located in Shenzhen’s Futian district and is among the two stock exchanges in china’s Mainland. The Shanghai stock exchange (SSE) is the second.  According to the website of the SZSE, The Shenzhen stock exchange “is a self-regulated legal entity under the supervision of China Securities Regulatory Commission (CSRC)”.

Some important roles of the SZSE as stated on her website include;

  • Providing the venue and facilities for securities trading.
  • Formulating operational rules.
  • organizing and supervising securities trading and
  • Supervising members.

Products on the SZSE include mutual funds, fixed income products, and more.

The Shenzhen stock exchange has sessions for trading in five days of the week. There are no trading sessions on Sundays, Saturdays, and holidays that are recognized by the SZSE.

 

The SZSE Over the years

On the website of the SZSE, it is stated that “Since 2000, SZSE has signed MOUs with 30 major stock exchanges and financial institutions in the world and enhanced cross-border cooperation and communications. It has also taken an active part in international securities organizations. SZSE is a member of both the World Federation of Exchanges (WFE) and the Asian and Oceanian Stock Exchanges Federation (AOSEF). It is also an affiliate member of the International Organization of Securities Commissions (IOSCO).”

All the above memberships and affiliation stated on the website of the SZSE, shows how much the SZSE has achieved over the years.

The Shanghai Stock Exchange VS The Shenzhen Stock Exchange

The Shenzhen stock exchange (SZSE) and the Shanghai stock exchange (SSE) are the two stock exchanges in China’s mainland. By market capitalisation, the Shanghai stock exchange is larger than the SZSE.

While the companies often trading on the SZSE are smaller companies, bigger companies tend to do their trading on the SSE.

The SSE is the fourth largest stock exchange in the world, while the SZSE is the eighth.

Contributions of the SZSE to China’s economy

THE SZSE has indeed contributed to the success of China’s economy over the years. according to the website of the SZSE, it is also stated that the  –  “SZSE is committed to developing China’s multi-tiered capital market system, serving national economic development and transformation and supporting the national strategy of independent innovation…… SZSE plays an increasingly important role in supporting the real economy and transforming the nation’s economic growth model.”

Considering Shenzhen’s commendable investment in technology, along with other profitable sectors, her contribution to China’s economic strength is clearly evident.

Boards of the SZSE

The SZSE comprises of three boards: the main board, the SME board, and the ChiNext market.

The main board is the first of the three boards to exist. The SME board was started in 2004, while the ChiNext market was commissioned in 2009.

The ChiNext market has been compared to the NASDAQ stock exchange.

The Stock Connect

The website of the Hong Kong stock exchange has it that the stock connect is “A unique collaboration between the Hong Kong, Shanghai and Shenzhen Stock Exchanges, Stock Connect allows international and Mainland Chinese investors to trade securities in each other’s markets through the trading and clearing facilities of their home exchange.”

The stock connect seems to be a good move towards improving the relationship between the three stock exchanges and its effect is likely to cause more progress for the SZSE, and also to profit the economy of China.

Doing Business in Shenzhen

Are you doing business in Shenzhen? Or maybe you are seeking to start up a business in Shenzhen city. Either way, the help of professional business guides especially around the Shenzhen area will be very helpful.

If you are a foreigner who can’t speak any Chinese language, you might need the assistance of an interpreter. The service of a sourcing agent who can help you make purchases at good prices is also recommended. Simply get the services of interpreters and sourcing agents all on www.interpretershenzhen.com.

Conclusion

Over the years, the SZSE has grown to where it stands today as the 8th largest stock exchange in the world. With the current status of Shenzhen city, it’s likely the wonder city’s growth will only continue.

With more growth for Shenzhen, coupled with developments such as the stock connect, the SZSE is possibly going to grow in the future and attain more impressive spots on the stock exchange rankings.

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