This is a history of the short life so far of the Shenzhen Stock Exchange (SZSE), established in China on 1 December 1990 as a self-regulated legal entity under the supervision of China Securities Regulatory Commission (CSRC).
The SZSE supervises securities trading and performs duties prescribed by laws, regulations, rules and policies. Its main functions include providing the venue and facilities for securities trading and formulating operational rules.
Other functions are to receive listing applications and arranging securities listing, organising and supervising securities trading, supervising members; regulating listed companies, managing and disseminating market information.
Committed to development
SZSE says on its website that it 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.
The SME Board was launched in May 2004. The ChiNext market was inaugurated in October 2009. Thus SZSE has a framework of multi-tiered capital market comprising the Main Board, SME Board, and the ChiNext market.
SZSE’s products cover equities, mutual funds and bonds. The product lines include A-shares, B-shares, indices, mutual funds, fixed income products and diversified derivative financial products.
Increasingly important to PRC economic growth
SZSE says that it plays an increasingly important role in supporting the real economy and transforming the economic growth model of the People's Republic of China.
Since 2000, it has signed a memorandum of understanding with 30 major stock exchanges and financial institutions in the world and enhanced cross-border cooperation and communications.
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 Organisation of Securities Commissions (IOSCO).
In 2016, Shenzhen Connect with Hong Kong was launched. The Exchange describes this as another step forward in mutual market access, building on the model of Shanghai Connect to allow investors to buy and sell eligible shares listed in the Mainland and Hong Kong markets.
HKEX chairman C K Chow (left) and chief executive Charles Li (right) announce the framework of Shenzhen-Hong Kong Stock Connect
Address: 2012 Shennan Blvd, Futian District, Shenzhen, People's Republic of China, 518038
Chief Executive Officer and President: Wang Jianjun
Best known indices
- SZSE Component Index
- SZSE Component TRN
- SZSE Component B
- SZSE SME
- SZSE 300
- SZSE SME 300
- SZSE 200
- SZSE 700
Opening hours: Monday to Friday.
Opening call auction: 9:15am - 9.25am
Continuous auction: 9:30am - 11.30am
Closing call auction: 2:57pm - 3pm
Market capitalisation: RMB 7,363,784,253,810
Number of companies listed: 477
Biggest companies listed as of May 2017: Hangzhou Hikvision Digital Technology, Midea Group, S F Holding Co, China Vanke Co, Gree Electric Appliances Inc of Zuhai Co.
Five top increases May 2017: Hangzhou Landscape Architecture Design Institute (+519.47%); Hamaton Automotive Technology Co (+365.35%); Shenzhen Fluence Technology (+285.49%); Yantai Zhenghai Bio-Tech Co (+239.68%); Qingdao Weflo Valve Co (+217.09%).
Five biggest fallers May 2017: Jiangsu Jiangyin Rural Commercial Bank (-46.601%); Dohia Group Co (-44.782%); China Real Estate Corporation (-43.722%); Wuxi Honghui New Materials Technology Co (-42.689%); First Capital Securities Co (-41.637%).
1990 SZSE started operations.
- Computer-assisted trading system developed by SZSE put into operation. The system provided transaction processing, quotation display, clearing and distribution functions which greatly increased trading efficiency. Quotes transmission network was installed
- SZSE launched its first stock index, which took 3 April as the base day with a base of 100 points
- Yantian Port Key Construction Bond became the first bond listed on SZSE
- SZSE shifts from manual bidding to automatic matching
- China Southern Glass Co floated both A-shares and B-shares on SZSE, making it the first company to float B-shares on the exchange
- SZSE launches its new trading floor which increased the number of trading seats from the previous 32 to 210 and daily matching capacity from the previous 20,000 deals per day to 60,000 deals per day
- SZSE stock quotes transmitted through satellite, the first time in China satellite communication technology is used to transmit market data
- China Securities Regulatory Commission (CSRC), Hong Kong Securities and Futures Commission (SFC), Stock Exchange of Hong Kong (SEHK), Shanghai Stock Exchange (SSE) and SZSE sign a Memorandum of Regulatory Co-operation in Beijing
- SZSE grants B-share special seats to eight overseas licensed brokers, of which five conducted B-share trading on the same day
- By December SZSE had 77 listed companies located in 17 provinces, autonomous regions and municipalities throughout China, making it a national securities market
- The listing of five T-bond spot products marks the inception of Shenzhen T-bond cash market
- SZSE launches OTC T-bond repo business
- SZSE launches T-bond futures trading business
- China Southern Glass issues US$45m of B-share convertible bonds in Switzerland, the first time a Chinese enterprise has issued B-share convertible bonds abroad
- China Merchants Shekou Port Service B lists in Singapore, the first overseas secondary listing by a Chinese company
- B-share central clearing system started running, improving B-share clearing efficiency, clearing fees and settlement risk
- Northeast Electrical Transmission & Transformation Machinery Manufacturing Co., Ltd. became the first H-share company to float A-shares on SZSE
- The Ministry of Finance offers T-bond by tender through SZSE’s computer system for the first time
- SZSE becomes an affiliate member of IOSCO and a member of the organisation’s Consultative Committee
- SZSE abolishes its trading floor and adopts full electronic trading
- Stock exchanges put under the direct administration of the CSRC
- Fund Kaiyuan, the first standardised securities investment fund, is listed on SZSE
- SZSE celebrates relocation to its current premises
- The communication system for B-share settlement is put into operation
- ST Chongqing Titanium becomes the first Shenzhen-listed stock to be suspended from trading
2000 Angang New Steel Co becomes the first listed company to issue convertible bonds.
- SZSE OTC market launched
- Shenzhen Securities Communications Centre inaugurated
- Shanghai Jinzheng Information Investment Consulting Co completes the SZSE's first block trade
- SZSE becomes a member of the World Federation of Exchanges (WFE)
- The Shanghai Representative Office of Nomura Securities Co was admitted as SZSE’s first overseas special member
2003 SZSE launches enterprise bond repo trading business. Trading fee rates on bonds were cut by an average of 50%.
- SME Board launched and the first eight companies make their debut there.
- Electronic order routing system introduced into SZSE’s block trading platform.
- Southern Active Allocation Fund, China’s first listed open-end fund, listed on SZSE.
- Shanghai and Shenzhen 300 Index (CSI Index) officially launched.
- The first 28 companies started share reform, marking the beginning of a fundamental institutional change in China’s capital market.
- China Securities Index Co, a 50-50 joint venture between Shanghai Stock Exchange and SZSE, established in Shanghai.
- Zhongguancun Share Quotation and Transfer System launched, the first two Zhongguancun-based companies, Century Real Technology and Sinosoft, being quoted on the Share Transfer System.
- SME Board exchange-traded fund listed.
- Non-tradable share reform largely completed.
2009 ChiNext inaugurated and its first 28 ChiNext issuers listed.
- ChiNext Index launched.
- By year-end SZSE had 321 initial public offerings.
- Harvest SSE-SZSE 300 ETF was listed on SZSE as the first cross-market ETF listed in Shenzhen market.
- Shenzhen Stock Exchange Implementation Measures for Securities Lending Transactions in Refinancing (for Trial) was promulgated.
- China AMC Hong Kong Hang Seng ETF, one of the first cross-border ETF products in China, listed on SZSE.
2016 Shenzen Connect to Hong Kong launched.
Sources: www.szse.cn and Shenzhen Stock Exchange Monthly Report May 2017
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Top ten stock exchanges of the world
- New York Stock Exchange (NYSE)
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- London Stock Exchange (LSE)
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- Shanghai Stock Exchange (SSE)
- Hong Kong Stock Exchange (SEHK)
- Shenzhen Stock Exchange (SZSE)
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