Shanghai was mainland China’s first city to see the emergence of stocks, stock trading and stock exchanges. Stock trading started in Shanghai in the late 1860s. In 1891, the Shanghai Share Brokers Association, an early form of a stock exchange, was established. With the founding of the Shanghai Securities Goods Exchange and the Shanghai Chinese Securities Exchange in the 1920s, Shanghai emerged as the financial center of the Far East, where both Chinese and foreign investors could trade stocks, bonds and futures.
The exchange came to an abrupt halt on December 8, 1941 after Japanese troops occupied the Shanghai International Settlement. In 1946, the Shanghai Chinese Security Exchange resumed its operations under its new name, the Shanghai Securities Exchange Co., Ltd. before closing again 3 years later after the Communist revolution took place.
Since 1980, China’s securities market has grown in tandem with reforms, opening up the country and the development of the socialist market economy. In 1981, the offering of treasury bonds resumed and in 1984, stocks and corporate bonds were issued in Shanghai and other regions. On November 26, 1990, the Shanghai Stock Exchange was established with its formal operations beginning a few weeks later on December 19.
The Science and Technology Innovation Board (Sci-Tech Innovation Board) or STAR Market is a new trading platform for the Shanghai Stock Exchange (SSE) that was launched in 2019. It is independent from the existing main board and focuses on companies in high-tech and strategically emerging sectors. The registration-based IPO system is optimized for the issuance conditions, which is a major reform to simplify the listing process.
The establishment of the Sci-Tech Innovation Board and the registration system is to support and serve sci-tech innovation enterprises, enhance the inclusiveness of the capital market for the science and technology innovation enterprises, bolster the reform toward innovation in key technologies, to improve the capacity of the capital market system for driving the real economy and to boost the healthy development of the capital market system.
The first group of companies on the SSE STAR Market were listed on July 22, 2019. During the first nine months, a total of 100 companies were listed. The total capital raised of the 100 companies listed reached RMB118.8 billion and by April 28, 2020, the market capitalization of these companies exceeded RMB1.3 trillion. The first group of companies are highly concentrated in the high-tech industries and strategic emerging industries, presenting the leading companies of various industry segments.
The SHFE provides trading in a variety of metals and energy commodities. It is a non-profit regulated by the China Securities Regulatory Commission.
The ZCE provides trading on agricultural commodities, glass, methanol, ferroalloy and thermal coal. Launched as a forward trading exchange.