Shanghai Stock Exchange: Growth and How to Trade It

Founded in 1891, the Shanghai Stock Exchange is one of the largest stock exchanges in the world. Over the years, it has built a true empire and now attracts many investors, both foreign and local. But what makes it so successful? And how do you trade on the Shanghai stock exchange?

Shanghai Stock Exchange: Overview

The Shanghai Stock Exchange was founded in 1891. After the People’s Republic of China was established in 1949, it closed its market and only reopened in 1990.

Today, it ranks fifth among the world’s largest financial markets by market capitalization, ahead of the Shenzhen Stock Exchange, which is also very important in the Chinese financial market.

Apart from the Treasury bond market, the Shanghai Stock Exchange has two stock markets:

• Segment A: where shares are quoted in RMB, the local currency.
• Segment B: where shares are quoted in USD, and which is open to foreign investors.

The Shanghai Stock Exchange is a non-profit body governed by the CSRC (China Securities Regulatory Commission). Its listed securities must meet certain criteria, notably being issued by an operating company with at least three years of track record.

To go further, also read our guides “Life Insurance” and “Ecuador Stock Exchange“.

Why Is It So Successful? Shanghai’s Market Dynamism

Demographically, Shanghai is the largest city in China. It is also one of the biggest urban areas on the planet, with more than 24 million inhabitants.

Shanghai holds a key position in China’s economic, industrial and financial sectors. Home to the country’s largest port, the city is a huge hub for trade and transport.

This climate of economic growth encouraged investment and led to the exchange reopening in 1990. Within a few years, it was able to rival the world’s oldest stock exchanges, such as the New York Stock Exchange and the Tokyo Stock Exchange.

Trading on the Shanghai Stock Exchange – Tips for Beginners

You need some trading tips before investing on the Shanghai Stock Exchange. These tips will help you succeed:

• Define Your Trading Style

To define your trading style, you first need to set your investment horizon and how long you hold positions. A position trader on the SSE holds positions for a few months, a swing trader for a few days, and a day trader only for a few hours.

In a market as volatile as Shanghai, it would be more beneficial to adopt a day trading strategy, which can hold a position for just a few minutes. With this method, you will need to trade early in the day, so start as soon as the market opens.

• Set a Trading Plan and Stick to It

A trading plan helps you adapt to the unexpected in the market. If you want to start trading on the Shanghai Stock Exchange, you should set a short-term plan, focused mainly on day trading.

• Refine Your Strategy

Anyone investing on an international exchange like Shanghai needs to fine-tune their trading strategy. If your tools are not strong enough for this type of market, you will not be able to compete with other traders. What’s more, trades and orders on the SSE are quite volatile.

• Be Careful with Leverage

For beginner investors, mistakes are inevitable in a volatile market like the SSE. Start with maximum leverage of 1:30 to reduce the risk of losses.

For experienced investors: if you have been trading the Shanghai market for some time, try higher leverage and choose a broker that offers it.

• Understand the Shanghai Stock Market

Before investing on the SSE, research where your money goes during transactions. This applies to all traders, beginner or experienced: make sure you spend a few hours studying the Shanghai stock market.

• Follow Shanghai Market News

Anyone interested in the stock market should keep up with its news. If you want to trade successfully on the Shanghai Stock Exchange, you need to follow how trading develops during market hours, as it can change regularly. Fortunately, many brokers provide real-time market prices.

• Keep Learning

Learning is essential before you start trading on the Shanghai Stock Exchange. Trading in this vast market can turn into a total loss if you do not know the right strategies. And even after several months of experience, never stop learning.

How the Shanghai Stock Exchange (SSE) Works

The Shanghai Stock Exchange is not as fully open to investors as its main rival, the Hong Kong Stock Exchange. It is subject to certain government restrictions and focuses more on local investors.

Nearly 1,400 companies are currently listed on this exchange, offering various financial products: funds, shares and derivatives. But which sectors are these companies in?

Shanghai Stock Exchange Indices

Like all other stock indices, those on the Shanghai Stock Exchange help assess the market trend by analyzing the average performance of the index constituents.

Trading the SHANGHAI COMPOSITE INDEX (000001)

The SSE COMPOSITE INDEX is one of the best-known indices on the Shanghai Stock Exchange. It is made up of Class A shares quoted in yuan renminbi and Class B shares quoted in USD. In 1991, the year it was created, the index was launched with a base value of 100 points.

A chart showing the SSE COMPOSITE INDEX over 5 years gives the following results:

• In 2017, it stood at 3,347.15 points.
• In 2020, it stood at 3,323.95 points.
• This year, in 2025, it stands at an average of 3,600.78 points (last trade on 05-28-2025)

Trading the SSE 20, SSE 50 and SSE 180

These indices on the Shanghai Stock Exchange group together the top 20, 50 and 180 companies in China.

Why Trade the Shanghai Stock Exchange?

Trading on the Shanghai Stock Exchange has several advantages, especially for the most active traders.

• A Market Accessible Through Many Brokers

First, the exchange is easy to access through online brokers. There is no longer any need for face-to-face meetings that slow down transactions, and trading in this market is more volatile.

• Promising Stocks

Next, the SSE is technologically very advanced. Many companies in promising sectors are listed there, and of course you can invest in these markets during the Shanghai Stock Exchange’s trading hours.

Markets Available on the Shanghai Stock Exchange

Before listing on the Shanghai market, a company must be profitable and have been active for at least three years.

Apart from Treasury bonds, two main stock markets coexist on the Shanghai Stock Exchange: an A-share market traded in local currency and a B-share market traded in US dollars. Originally, only segment B was opened for foreign investors. The A market was only established later, under pressure from a number of local investors, and quotes on this market are in local currency, the yuan.

• The A-Share Market

These are ordinary shares quoted in local currency. Foreign investors cannot access them without going through a special program called QFII. Its creation allowed Chinese companies to tap domestic savings from resident investors.

• The B-Share Market

These shares, quoted in US dollars on the Shanghai Stock Exchange, are called preference shares. Unlike segment A shares, they are open to foreign investors without any special program.

Note: each of these two segments covers all the major markets, including commodities (gold, copper), currency pairs (EUR/USD), forex, cryptocurrency and capital markets.

List of SSE-Listed Companies by Market Capitalization

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Listing Requirements for the Shanghai Stock Exchange

A company applying to list on the Shanghai Stock Exchange must meet the following rules:

• Its shares must be offered publicly with CSRC approval
• Its total share capital must exceed 50 million
• Its shares issued to the public must represent at least 25% of its total shares. If its share capital exceeds RMB 400 million, its public shares must represent no less than 10% of all its shares
• The company must not have committed any legal violation in the three years before listing, and all its financial and accounting documents must be genuine.

Documents Required for Listing

The company must wait for its listing to be approved after providing these documents:

• Approval document from the CSRC
• Shareholders’ meeting resolutions on the listing of the shares
• Copy of the business license
• Financial data for the three years before the listing date
• Records showing that all shares issued are held in custody by China Securities Depository
• Proof of issued capital from an accounting firm.

The Best Days of the Week to Trade the SSE

Trading the Shanghai Stock Exchange before Monday morning is not favorable. During this time, spreads are too wide and the market is thin. But it all depends on your trading strategy, which may allow you to trade at night when trading is volatile.

• Trading on Tuesday: in general, the people who trade the Shanghai Stock Exchange on Tuesdays are those looking for volatile markets. Volatility is 120% to 130% of Monday’s level. Even more interesting, economic announcements regularly come out on this day.
• Trading on Wednesday: this is the ideal day for anyone who wants to trade calmly on the Shanghai Stock Exchange. It is mainly suited to traders who are not looking for fierce competition.
• Trading on Friday: for the SSE, investing at the end of the week is a great opportunity. The calendar is full of economic announcements, and releases published on Fridays have a huge impact on trading. On the first Friday of the month, releases mainly concern currency pairs. Likewise, on the third Friday of the month, commodity and currency contracts expire quickly.

SSE Holiday Calendar

The Shanghai Stock Exchange is closed on local public holidays. Plan ahead, as here is a list of all the public holidays for 2025:

• Friday, January 01, 2025: New Year’s Day
• Thursday, February 11, 2025: Chinese New Year
• Friday, February 12, 2025: Chinese New Year
• Monday, February 15, 2025: Chinese New Year
• Tuesday, February 16, 2025: Chinese New Year
• Wednesday, February 17: Chinese New Year
• Monday, April 05: Qingming Festival
• Monday, May 03, 2025: Labor Day
• Tuesday, May 04, 2025: Labor Day
• Wednesday, May 05, 2025: Labor Day
• Monday, June 14, 2025: Dragon Boat Festival
• Monday, September 20, 2025: Mid-Autumn Festival
• Friday, October 01, 2025: National Day
• Monday, October 04, 2025: National Day
• Tuesday, October 05, 2025: National Day
• Wednesday, October 06, 2025: National Day
• Thursday, October 07, 2025: National Day

History of the Shanghai Stock Exchange

• This Chinese exchange was founded in 1891. But after the People’s Republic was established in 1949, it was closed for a long time. It only reopened in 1990, under the State Council of the People’s Republic of China. A few months after reopening, its main stock index, the SSE Composite, was created.
• Around 2006, it listed the shares of 842 companies, representing a market capitalization of USD 915 billion. That year it soared by 130%, and by 97% the following year. In October 2007, the exchange peaked at 6,124 points.
• The 2008 financial crisis hit the Shanghai Stock Exchange particularly hard, wiping out nearly 65.5% of its value. By the end of 2008, it stood at just 1,820.81 points after losing $3,000 of market capitalization.
• Only a tiny part of listed companies’ capital was open to the public toward the end of 2008, which triggered price moves. Around 120 million accounts are active on the A-share market.
• In 2012, the Shanghai Stock Exchange became the largest exchange in China, ahead of the Hong Kong and Shenzhen stock exchanges. Its market capitalization reached €4,000 billion. In just ten years, the capitalization of its listed securities quadrupled, a unique path in stock market history.

The Shanghai Stock Exchange has broadened its ambitions. With the support of the Chinese government, it launched a market dedicated to technology stocks in 2019. Called the STAR Market, this new market was nicknamed China’s Nasdaq, as the aim was to create a market able to compete with the Nasdaq. Unsurprisingly, it surged by more than 520% on its first day.

How the Shanghai Stock Exchange Has Developed

Since its closure in 1949 and its reopening, the Shanghai Stock Exchange has developed strongly. In 2006, it listed 842 companies, with a market capitalization of USD 915 billion. Its momentum that year attracted millions of major investors to the market. In 2007, this Asian exchange peaked at 6,124 points. By the end of 2008, 120 million A-share accounts were active.

Top 10 Stock Exchanges in the World

Here is the list of the world’s 10 major stock exchanges:

• New York Stock Exchange (NYSE)
• Nasdaq
• London Stock Exchange (LSE)
• Tokyo Stock Exchange (TSE)
• Shanghai Stock Exchange (SSE)
• Euronext
• Hong Kong Stock Exchange (HKSE)
• Shenzhen Stock Exchange
• Toronto Stock Exchange (TSX)
• Frankfurt Stock Exchange

The largest stock exchanges channel a huge share of international financial flows and trade. The list above shows just 10 of the 60 largest exchanges in the world. As you can see, the Shanghai Stock Exchange is among the world’s top exchanges (according to Wikipedia).

Shanghai Stock Exchange vs Hong Kong Stock Exchange

Even in 2025, many investors confuse the Shanghai Stock Exchange with the Hong Kong Stock Exchange. These two exchanges have major differences. The Hong Kong Stock Exchange is now the largest stock market in China. Unlike the A-share and B-share markets available on the Shanghai Stock Exchange, the shares traded on the Hong Kong Stock Exchange are H shares, issued by Chinese companies listed on that exchange, and all quotes are in Hong Kong dollars. While these securities used to be reserved for foreign investors, residents now have access to them.

On the Shanghai side, most of the exchange’s market capitalization comes from companies that were formerly state-controlled.

Read also: Shanghai Stock Exchange Opening Hours