What Is the Shanghai Stock Exchange Composite Index?


Quick Answer

The Shanghai Stock Exchange, or SSE, Composite Index tracks the market performance of all the securities listed on the exchange. The type of securities traded in the exchange are stocks, funds and bonds and it is supervised by the China Securities Regulatory Commission, or CSRC, states the World Exchanges website.

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Full Answer

The SSE began operating in December 1990, about a month after its founding. It has since become China's preeminent stock market when it comes to the number of companies and shares listed, total market value, tradable market value, securities turnover in value, stock turnover in value and T-bond turnover in value, according to its website.

As of December 2013, the SSE has 997 listed stocks. By May 2015, its total market capitalization is 5.5 trillion U.S. dollars. This makes it the fifth largest stock market in terms of market capitalization. However, the Chinese government has tight controls over the SSE, making trading restrictive for foreign investors.

Infrastructure and tech industries that are listed on the SSE have successfully increased their capitals and likewise improved their operation mechanisms, notes the SSE website. As of January 2015, the biggest stocks on the SSE include Petrochina, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Life.

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