China securitiesmarkets refer to the Shanghai Stock Exchange and the Shenzhen Stock Exchange.
The Shanghai Stock Exchange (SSE) consists of the Main Board and the STAR Market. Most of the companies listed on the Main Board are central and other state-owned enterprises, while new listings are relatively few. Companies listed on the STAR Market are mostly high-tech companies focusing on such areas as new materials, new energy and biomedicine.
The Shenzhen Stock Exchange (SZSE) has two components: the Main Board and the ChiNextMarket. Companies listed on the SZSE are mostly relatively smaller-scale private companies or joint ventures.Newlistings are many.
The tradingrules of the SSEand SZSEare as follows:
Trading Session | Beijing Time |
Opening Call Auction | 9:15~09:25 |
Continuous Auction | 09:30~11:30 13:00~14:57 |
Closing Call Auction | 14:57~15:00 |
1. Trading and Settlement Mechanism
The current A-share trading system employs the"T+1"trading and settlement mechanism withanintradaychange limit of 10% (5% for stockswith a "risk alert")
2. Order Matching Mechanism
Orders are matched based on the principle of price priority. When prices are the same, orders that are placed earlier will be matched first.
3. Trading Unit
Thetrading unitin the Chinese securities market is "lot", each of which consists of 100 shares. For buy orders, it is only possible to enter a number of 100 shares or a multiple of 100. An odd lot may occur when a buy order is not fully filled or after a stock dividend. Odd lots can be sold by placing a sell order but not bought.
The main financialproductsavailable for trading in the Chinese securities market include stocks and their depositary receipts, securities investment funds, bonds, warrants, and asset-backed securities.