Investor’s guide to the Chinese stock market from freeamfva's blog
The Chinese stock market has been an extraordinary wealth generator over the long term for both domestic Chinese investors, and also international investors. According to Refinitiv data, foreign investors held over US$600 billion in Chinese stocks listed on the mainland or in Hong Kong.To get more shanghai stock market news, you can visit shine news official website.
A seperate Asia Markets guide, provides a great overview of how investors from the US and other regions outside of China can invest in Chinese stocks.
This guide provides everything you need to know about the structure of the domestic Chinese stock market and some historical context for investors to consider.Shanghai is China’s main financial hub, so it’s no surprise the city is home to China’s largest stock exchange. The Shanghai Stock Exchange has a total market cap around around US$6.8 trillion, with 2128 listed securities (as at April 2022). The exchange has a large weighting towards the Financial and Real Estate sectors, along with Industrials.
It is Asia’s largest stock market and third-largest stock market in the world, by market cap.
Here’s a list of some of the most well-known and largest Chinese stocks you’ll will find on the Shanghai Stock Exchange.When looking at the Shanghai Stock Exchange, investors should also note the exchange has two seperate boards. There is what is referred to as the “main board” and also the SSE STAR Market.
The SSE STAR Market (officially known as the Science and Technology Innovation Board) was launched in June, 2019. It is often described as China’s NASDAQ-equivalent due to it targeting listings of growth-style tech companies. On the SSE STAR Market, investors will find companies predominately from the following industries:The SSE STAR Market, affords innovative companies from those sectors less stringent requirements for listing, compared to the Shanghai Stock Exchange main board.
The total market cap of the SSE STAR Market is just over US$640 billion, with 416 listed securities (as at April 2022).An interesting feature of the board is that there are fewer Chinese state-owned enterprises than any other Chinese exchange.
Around 80% of companies listed are privately owned (ie. not state-owned Chinese enterprises). On the Shanghai main board around 67% of companies are privately owned.The Shenzhen Stock Exchange is China’s second-largest stock exchange. It has a total market cap of just over US$3 trillion, with 1,493 listed companies (as at April 2022). This exchange has a strong weighting to the manufacturing sector, with a large number of Chinese manufacturing giants listed.
As discussed, the Shenzhen Stock Exchange has a lower proportion on non-state-owned enterprises than both the main board of the Shanghai Stock Exchange and the STAR Market.Close to 50% of companies listed in Shenzhen are state-owned enterprises.
However, this shouldn’t deter investors. There are a number of well-know and powerful businesses listed on the exchange. Here’s a list of some of the top China stocks listed on the Shenzhen Stock Exchange.Similar to the SSE STAR Market, ChiNext is a seperate board of the Shenzhen Stock Exchange which has a focus on emerging industries. It was launched in 2009 and now has a total market cap of over US$1.5 trillion and 1140 listed companies (as at April 2022).
The board provides a more streamlined avenue for the IPO’s of technology-focussed companies and startups, relative to the Shanghai Stock Exchange’s main board.
As you may have determined, there are many parallels between the STAR Marker and ChiNext. The two NASDAQ-like boards are often seen as being in competition for the listings of the best emerging tech companies in China.
When it comes to the type of companies listed on the two competing boards, ChiNext is slightly skewed towards growth companies with smaller market caps, while the STAR Market has a skew towards listings of companies with more advanced technology and further into their company life cycle.
A seperate Asia Markets guide, provides a great overview of how investors from the US and other regions outside of China can invest in Chinese stocks.
This guide provides everything you need to know about the structure of the domestic Chinese stock market and some historical context for investors to consider.Shanghai is China’s main financial hub, so it’s no surprise the city is home to China’s largest stock exchange. The Shanghai Stock Exchange has a total market cap around around US$6.8 trillion, with 2128 listed securities (as at April 2022). The exchange has a large weighting towards the Financial and Real Estate sectors, along with Industrials.
It is Asia’s largest stock market and third-largest stock market in the world, by market cap.
Here’s a list of some of the most well-known and largest Chinese stocks you’ll will find on the Shanghai Stock Exchange.When looking at the Shanghai Stock Exchange, investors should also note the exchange has two seperate boards. There is what is referred to as the “main board” and also the SSE STAR Market.
The SSE STAR Market (officially known as the Science and Technology Innovation Board) was launched in June, 2019. It is often described as China’s NASDAQ-equivalent due to it targeting listings of growth-style tech companies. On the SSE STAR Market, investors will find companies predominately from the following industries:The SSE STAR Market, affords innovative companies from those sectors less stringent requirements for listing, compared to the Shanghai Stock Exchange main board.
The total market cap of the SSE STAR Market is just over US$640 billion, with 416 listed securities (as at April 2022).An interesting feature of the board is that there are fewer Chinese state-owned enterprises than any other Chinese exchange.
Around 80% of companies listed are privately owned (ie. not state-owned Chinese enterprises). On the Shanghai main board around 67% of companies are privately owned.The Shenzhen Stock Exchange is China’s second-largest stock exchange. It has a total market cap of just over US$3 trillion, with 1,493 listed companies (as at April 2022). This exchange has a strong weighting to the manufacturing sector, with a large number of Chinese manufacturing giants listed.
As discussed, the Shenzhen Stock Exchange has a lower proportion on non-state-owned enterprises than both the main board of the Shanghai Stock Exchange and the STAR Market.Close to 50% of companies listed in Shenzhen are state-owned enterprises.
However, this shouldn’t deter investors. There are a number of well-know and powerful businesses listed on the exchange. Here’s a list of some of the top China stocks listed on the Shenzhen Stock Exchange.Similar to the SSE STAR Market, ChiNext is a seperate board of the Shenzhen Stock Exchange which has a focus on emerging industries. It was launched in 2009 and now has a total market cap of over US$1.5 trillion and 1140 listed companies (as at April 2022).
The board provides a more streamlined avenue for the IPO’s of technology-focussed companies and startups, relative to the Shanghai Stock Exchange’s main board.
As you may have determined, there are many parallels between the STAR Marker and ChiNext. The two NASDAQ-like boards are often seen as being in competition for the listings of the best emerging tech companies in China.
When it comes to the type of companies listed on the two competing boards, ChiNext is slightly skewed towards growth companies with smaller market caps, while the STAR Market has a skew towards listings of companies with more advanced technology and further into their company life cycle.
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| By | freeamfva |
| Added | May 23 '22 |
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