Shenzhen Stock Exchange
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| Shenzhen Stock Exchange | |
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| Founded | 1990 |
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| Headquarters | Shenzhen, China |
| Key People | President and CEO Ms.Liping Song |
| Products | Cash equities, bonds, ETFs, warrants |
| Corporate Website | http://www.szse.cn/main/en/ |
The Shenzhen Stock Exchange (SZSE) celebrates its 20th anniversary of trading in 2010 and is currently the second-largest exchange in China behind its stablemate the Shanghai Stock Exchange and the seventh-largest in the Asia-Pacific region as of October 2009, ranked by market capitalization. The SZSE recently signed co-operation agreements with exchanges in Thailand and Hong Kong, as well as with global index provider Standard & Poors.
Background
The SZSE was founded in late 1990 under the ownership of the Shenzhen Securities Clearing Corporation (SSCC) and the regulatory supervision of the China Securities Regulatory Commission and since then has grown significantly to become the second-largest exchange in China after the Shanghai Stock Exchange. In 2001 the Shenzhen Stock Exchange gained independence from the SSCC and became owned and operated instead by the newly-formed China Securities Depository and Clearing Co., the parent company of the Shanghai Stock Exchange.[1] In 2004 the Shenzhen Stock Exchange had eight listed companies, with new listings required to be small and medium enterprises (SMEs) only. By May 2008 the SZSE listed 897 securities in 697 companies[2]
In mid-2009 the SZSE teamed up with leading global index provider Standard & Poors (S&P) to jointly develop indices and other products for global investors on the Chinese market.[3] Under the agreement, SZSE will allow S&P to use its maket data to produce benchmark investible indices on the Chinese market while S&P will licennse its flagship S&P 500 Index to the exchange that will allow Chinese institutional investors to invest in a listed fund based on the index.
The Shenzhen Stock Exchange recently launched its long-planned small-cap exchange known as the Growth Enterprise Market (GEM) and also as ChiNext, which debuted at the end of October to such enthusiasm that trading was briefly suspended on its opening day.[4] The 28 companies listed on the first day were all small, privately-held enterprises in contrast to the mostly government enterprises that list on the Shaghai and Shenzhen exchanges.
By late November 2009, the Shenzhen Stock Exchange, based in China's fast-growing south-east region, had grown to a total of 801 listed companies and traded 1,126 different listed securities.[5] It is now the second-biggest exchange in China with a current market capitalization of US$732 billion, up 113% on the 2008 figure, while the Shanghai Stock Exchange has a current market cap of US$2.43 trillion.[6] According to data from the World Federation of Exchanges, the SZSE is the seventh-largest stock exchange in the Asia-Pacific region by market cap.
Key People
Song Liping was appointed president and general manager of the Shenzhen Stock Exchange in March 2008 by the market regulaltor the China Securities Regulatory Commission. Ms Song, fomerly and executive vice president of the SZSE, replaced Zhang Yujun, who took over as president of the Shanghai Stock Exchange.[7]
Latest News
The SZSE announced in November 2009 that that it is pursuing a co-operative relationship with the nearby Hong Kong Exchanges and Clearing that will allow the two exchanges to list each other's exchange-traded funds (ETFs).[8] Funds tracking the value of the Shenzhen Component Index and the Shenzhen 100 Index in Hong Kong and another tracking the Hang Seng Index in Shenzhen are currently awaiting regulatory approval. The SZSE also recently inked a preliminary agreement with the Stock Exchnage of Thailand that would allow a similar agreement between the two exchanges.[9]
From April 2010 the Shanghai Stock Exchange and the Shenzhen Stock Exchange began allowing some local brokers to short sell and trade on margin for the first time. Brokerages Guosen, Citic, Haitong, Guotai Junan, GF and Everbright will participate in the trial program.[10] Capital markets analysts believe the decision to allow margin trading and short selling is linked to China's introduction index futures on its equities markets in mid-April. They believe the move is a way to ease the market into products like stock index futures that require even greater liquidity and carry higher risk, the Wall Street Journal reported.[11]
References
- ↑ A History of the Shenzhen Stock Exchange. AssociatedContent.com.
- ↑ Market Overview. Shenzhen Stock Exchange.
- ↑ S&P Strengthens Relationship with Shenzhen Stock Exchange. Standard & Poors.
- ↑ A New Chinese Stock Exchange Opens With a Surge. New York Times.
- ↑ Market Overview. Shenzhen Stock Exchange.
- ↑ Year-to-date monthly statistics. World Federation of Exchanges.
- ↑ China Shuffles Key Personnel In Stocks Sector. Wall Street Journal.
- ↑ Shenzhen to integrate capital markets with Hong Kong. CCTV (China).
- ↑ SZSE signs MOU with Thailand Stock Exchange. Shenzhen Stock Exchange.
- ↑ Launch of Margin Trading, Short Selling. China Daily.
- ↑ China Rolls Out Margin Trading, Short Selling. Wall Street Journal.
