The Shenzhen Stock Exchange (SZSE; ) is a

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for ...

based in the city of

Shenzhen Shenzhen is a prefecture-level city in the province of Guangdong, China. A Special economic zones of China, special economic zone, it is located on the east bank of the Pearl River (China), Pearl River estuary on the central coast of Guangdong ...

, in the People's Republic of China. It is one of three stock exchanges operating independently in

Mainland China "Mainland China", also referred to as "the Chinese mainland", is a Geopolitics, geopolitical term defined as the territory under direct administration of the People's Republic of China (PRC) in the aftermath of the Chinese Civil War. In addit ...

, the others being the Beijing Stock Exchange and the

Shanghai Stock Exchange The Shanghai Stock Exchange (, SSE) is a stock exchange based in the city of Shanghai, China. It is one of the three stock exchanges operating independently in mainland China, the others being the Beijing Stock Exchange and the Shenzhen Stock ...

. It is situated in the Futian district of Shenzhen. The SZSE is the world's 6th largest stock exchange with a

market capitalization Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by ...

exceeding US$4.4 trillion in July 2024.

History

On 1 December 1990, Shenzhen Stock Exchange was founded. As an idea adapted from the capitalist countries, it was politically controversial in China. In support of the stock exchange,

Deng Xiaoping Deng Xiaoping also Romanization of Chinese, romanised as Teng Hsiao-p'ing; born Xiansheng (). (22 August 190419 February 1997) was a Chinese statesman, revolutionary, and political theorist who served as the paramount leader of the People's R ...

rhetorically asked, "Are securities and the stock markets good or bad? Do they entail dangers? Are they peculiar to capitalism? Can socialism make use of them?" Deng contended that China must try them out and reserve judgment, because if securities and the stock market went well, they could be expanded, and if not, they could be stopped. In January 1992, Deng Xiaoping's Southern Tour saved China's

capital market A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold, in contrast to a money market where short-term debt is bought and sold. Capital markets channel the wealth of savers ...

and the two stock exchanges (the other was the

). Before 1997, the Shenzhen Stock Exchange was under municipal control and termed an "experimental point". In July 1997, the

State Council of China The State Council of the People's Republic of China, also known as the Central People's Government, is the chief administrative authority and national cabinet. It is constitutionally the highest administrative organ of the country and the e ...

decided that the Shenzhen Stock Exchange would be directly managed by the China Securities Regulatory Commission. It also affirmed that China's stock exchanges had a legitimate role in the

socialist market economy The socialist market economy (SME) is the economic system and model of economic development employed in the China, People's Republic of China. The system is a market economy with the predominance of public ownership and State-owned enterpr ...

. In 2004, the Small and Medium Enterprise Board was launched. In October 2009, the ChiNext market () was inaugurated.

Hours

The exchange has pre-market sessions from 09:15 am to 09:25 am and normal trading sessions from 09:30 am to 11:30 am and 1:00 pm to 3:00 pm

China Standard Time The time in China follows a single standard UTC offset, time offset of UTC+08:00, where Beijing is located, even though the country spans five geographical time zones. It is the largest sovereign nation in the world that officially observes only ...

( UTC+08:00) on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.

ChiNext

The exchange opened the ChiNext board (), a

NASDAQ The Nasdaq Stock Market (; National Association of Securities Dealers Automated Quotations) is an American stock exchange based in New York City. It is the most active stock trading venue in the U.S. by volume, and ranked second on the list ...

-type exchange for high-growth, high-tech start-ups, on 23 October 2009.

Overview

ChiNext is also called the second stock trading market. It refers to the securities trading market outside the main board. It provides growth space for

small and medium-sized enterprises Small and medium-sized enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel and revenue numbers fall below certain limits. The abbreviation "SME" is used by many national agencies and international organiza ...

and emerging companies that cannot be listed in the main board. It is an effective supplement to the main board market. The biggest feature of the ChiNext is that it has low entry barriers and strict operation requirements, which help potential small and medium-sized enterprises obtain financing opportunities. History The establishment of the ChiNext was a response to the growing demand for alternative financing options for small and medium-sized enterprises (SMEs) in China. Prior to its creation, many SMEs had difficulty raising capital as they did not meet the strict listing requirements of China's established stock exchanges in Shanghai and Shenzhen. The ChiNext was launched with 28 listed companies and quickly gained attention from investors as a platform for investing in high-growth industries such as technology, healthcare, and renewable energy. Over time, the number of listed companies on the ChiNext has grown, and as of 2021, there are over 800 companies listed on the exchange. In the years since its establishment, the ChiNext has undergone several reforms aimed at improving transparency, promoting more sustainable growth, and reducing risks associated with speculative trading. For example, in 2016, the exchange introduced a new registration-based IPO system, which simplified the listing process for new companies.

Influences

The influences of ChiNext includes boosting innovation and entrepreneurship and attracting foreign investment. Specifically, ChiNext has played a key role in promoting innovation and entrepreneurship in China by providing a platform for smaller and innovative companies to raise capital and grow their businesses. This has led to the development of startups and technology companies in China.

Market data

''(As of January 2021)''Shenzhen Stock Exchange Market Overview
/ref> *Listed companies: 2,375 *

Market capitalization Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by ...

: RMB 34,463,161.66million (US$5.24 trillion)

Listings

Major listing requirements

The listing requirements for the Shenzhen Stock Exchange (SZSE) are established by the China Securities Regulatory Commission and are designed to ensure the quality of companies listed on the exchange. The major listing requirements for the SZSE include: # Minimum size requirements: Companies seeking to list on the SZSE must have a certain level of size, as measured by net assets or revenue. # Financial performance: Companies must demonstrate a strong financial performance, with a track record of profitability and positive cash flow. Specifically, one of the following requirements must be met: 1.The estimated market value is not less than 1 billion yuan, the net profit in the most recent year is positive, and the operating income is not less than 100 million yuan; 2. The estimated market value is not less than 5 billion yuan, and the operating income in the most recent year is not less than 300 million yuan. # Corporate governance: Companies must demonstrate a commitment to good corporate governance, with a clear and transparent management structure. Specifically, the issuer's basic accounting practice is proper and its preparation and disclosure of the financial statements is in compliance with the ''Accounting Standards for Business Enterprises'' and relevant information disclosure rules, and fairly reflects in all material respects its financial position, the results of operations and cash flows, and its financial report has been issued an unqualified opinion by a CPA in the last three years. # Disclosure and transparency: Companies must provide full and timely disclosure of financial and other information, and must comply with all regulatory reporting requirements.

Building

The Shenzhen Stock Exchange building is a

skyscraper A skyscraper is a tall continuously habitable building having multiple floors. Most modern sources define skyscrapers as being at least or in height, though there is no universally accepted definition, other than being very tall high-rise bui ...

with a height of and 49 floors. Its construction started in 2008 and was finished in 2013. The building was designed by Rem Koolhaas's firm, the Office for Metropolitan Architecture. The building is located at 2012 Shennan Blvd., Futian District. With an area of 200,000 square metres, five high speed elevators and a futuristic design, the partners involved in the design and construction of this sky scraper included Rem Koolhaas, David Gianotten, Ellen van Loon and Shohei Shigematsu and construction by The Second Construction Co., Ltd of China Construction Third Engineering Bureau, a subsidiary of China State Construction Engineering Corporation.

References

External links

* {{Authority control Financial services companies established in 1990 Office buildings completed in 2013 Economy of Shenzhen Organizations based in Shenzhen Skyscraper office buildings in Shenzhen Stock exchanges in China Rem Koolhaas buildings Chinese companies established in 2013 Chinese companies established in 1990 1990 in Shenzhen