Shanghai Stocks Exchange


China boasts two major exchanges, the slightly larger Shanghai exchange being only 26 years old. The Shanghai being the largest stocks exchange in mainland China is run by the China Securities Regulatory Commission (CSRC). Stocks loans, bonds and funds are all traded on the Shanghai Stocks Exchange. It is a requirement however that a business must have a profitmaking record of three years before joining the exchange. Listed companies at the Shanghai Stocks Exchange trade stocks under two main classes that are: A-shares and B-shares. B-shares are in US dollars and are predominantly for foreign investments. A-shares on the other hand are quoted in Chinese Yuan and can only be traded by foreign investors through a program known as QFIL. Since the launch of margin trading and securities lending at the Shanghai Stocks Exchange 5 years ago, margin trading has experienced a significant boom while securities trading continue to lag behind. However, the exchange has proposed some measures meant to encourage investors to engage in securities lending. The exchange has optimized securities lending trading mechanism in order to make the process more efficient.