What is the Shenzhen Stock Exchange?

Introduction:

The Shenzhen Stock Exchange (SZSE) is a securities exchange based in the southern Chinese city of Shenzhen, located adjacent to Hong Kong. Established on December 1st, 1990, SZSE is one of the two stock exchanges operating independently in China today. With a market capitalization of over $2.9 trillion as of June 2021, it is also one of the largest stock exchanges in Asia-Pacific. This article will provide an overview of SZSE including its establishment, main products, and its significance in China's capital market.

Main products:

SZSE has a diverse range of financial products with its main products being shares, funds, and bonds. The stocks listed on the SZSE can be subdivided into two categories: A-shares and B-shares. A-shares can be purchased by mainland investors using CNY while B-shares can be bought by investors who use foreign currencies such as USD, HKD or SGD. SZSE's bond market consists of both government and corporate bonds. Meanwhile, funds traded in SZSE are divided into three categories: Monetary Fund, Open-Ended Fund, and Close-Ended Fund. SZSE's fund market aims to provide investors with high-performance, low-cost, and diversified investment products.

Significance:

SZSE plays a significant role in the Chinese capital market, and its overall importance has increased with the growth of the Chinese economy. SZSE is an important channel for enterprises to raise funds and offers investors an opportunity to invest in companies in various industries. Moreover, SZSE is also an essential component of China's capital market system. It is a platform for financial innovation, which has been an important means of promoting the reform and development of China's financial market. The exchange is also a crucial link between China's capital market and the international market, providing an attractive investment opportunity for overseas investors interested in accessing the domestic capital market. In conclusion, the Shenzhen Stock Exchange is a critical financial platform for China's capital market, which provides opportunities for companies to raise funds and investors to invest in them. SZSE also plays an essential role in integrating China's capital market with the global financial system. Its wide range of diverse financial products makes it a crucial factor in the development of China's financial market.