Stock & Investment

Shanghai Stock Market

The Shanghai Stock Exchange (SEE) (Pinyin: Shanghai Zhengquan Jiaoyisuo), located in the city of Shanghai with its headquarter at Shanghai’s new Pudongfinancial district, is the fifth largest in the world after the New York Stock Exchange, Tokyo Stock Exchange, London Stock Exchange, and Hong Kong Stock Exchange.  It was founded in 1891 as Shanghai Sharebrokers’ Association and renamed in 1904 as Shanghai Stock Exchange.  After a number of historical interruptions, the present exchange was re-established in 1990.  For rules and regulations, and details about the Shanghai Stock Exchange, go to www.sse.com.cn.

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Two types of stocks, A shares and B shares, are available on the Shanghai Stock Exchange.  A shares are quoted in Renminbi or Yuan, the Chinese currency, and B shares, in U.S. dollars.  A shares are primarily for domestic investors with limited access to international institutional investors.  B shares, which were initially structured for international investors, are now available to both international and domestic investors.  H shares are MainlandChina’s stocks listed on the Hong Kong Stock Exchange, located in Hong Kong administrative region of Hong Kong, China.  Some B shares are also listed in the Shenzhen Stock Exchange, located in Shenzhen, China.  The price points are various, although one company can be listed on a number of stock exchanges with a same company name. Industrial and Commercial Bank of China (ICBC), the largest of China’s big four banks and one of the largest IPO to date, for example, was listed both as A shares in Shanghai and as H shares in Hong Kong. The China Life Insurance Company Limited, short China Life, one of the world’s largest insurers, that provides life insuranceand annuity products, is listed in the Shanghai Stock Exchange, Hong Kong Stock Exchange as well as New York Stock Exchange (SSE601628SEHK:2628NYSELFC)              

China based companies listed directly in the major exchanges in the U.S. asADR (China) stocks are available to U.S. investors.  Baidu.com – ADR (China), the leading Chinese search engine using the "pay-per-click" model for advertising revenues, for example, is listed on NASDAQ (NASDAQ: BIDU; Sector: Technology; Industry: Computer Services; S&P Ranking: 3 stars).  InDecember, 2007, Baidu became the first company from China to be included in the NASDAQ-100 index.  Some China based companies are listed onOTC.  Bank of China, LTD (OTC: BACHF), for example, is available in Shanghai, Hong Kong as well as in the OTC market in the U.S.  Investors may purchase OTC stocks with the assistance of brockages like Scottrade (www.scottrade.com).   H shares listed in the Hong Kong Stock Exchange may be availabe via global services of brockages like Etrade’s global trading (www.etrade.com).  Pay specail attentions to the fee charged and the quatities required for OTC stocks and glable trading.  Investment senses and cautions apply. 

 Please note all stocks and investment vehicles mentioned in this article and on any pages of www.ShanghaiPinnacle are for examples and information only. www.ShanghaiPinnacle does not responsible for the quality and success of any products and services.