Shanghai Stock Exchange: The Most Aggressive Stock Market
Shanghai Stock Exchange is just one of China’s three independent stock exchanges along with Shenzhen and Hong Kong. It is bigger than Shenzhen and smaller than Hong Kong prior to 2007.
The history of Shanghai Stock Exchange started 1866 when the first share list appeared. After surviving one crisis after another, it reopened in November 26, 1990 and began operating again on December 19 of the same year. Prior to 2001, there was a market slump that reached its peak in 2001. And from then until 2005, Shanghai Stock Exchange had fallen into half of its market value. For Shanghai SE to recover, new IPOs (Initial Public Offerings) were banned to allow billions of USD of mostly state-owned equity to be converted o tradable shares.
In 2006, after lifting the ban on IPOs, Shanghai Stock Exchange resumed its full operation and shocked the world with the largest ever IPO by the Industrial and Commercial Bank of China. Though it did not make it to the world’s top 10 biggest stock markets in 2006, Shanghai Stock Exchange shocked the world once again in 2007 when it ranked 6th with a domestic market capitalization of USD 3.7 billions and kicking SWX, Switzerland’s stock exchange, out of the 10th place and overwhelmingly overtaking the giant Hong Kong Stock Exchange for the first time.
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