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Stock market sectors

For A-shares, major sectors include energy, financials, raw materials, industrials, utilities, consumer discretionary, consumer staples, healthcare, telecommunication services and information technology. State-owned enterprises contribute a larger portion in terms of market capitalisation in "old economy" sectors relating to fixed assets investments (including financials, energy, raw materials, industrials and utilities). Private companies contribute a smaller portion in consumption-related "new economy" sectors.

When comparing the Mainland and Hong Kong stock markets, more varieties are available in A-shares than in H-shares for areas such as raw materials (particularly chemicals, construction materials etc.), industrials and capital goods (especially industrial machinery, defense and military, power equipment etc.), consumer staples (Chinese white wine, beer, agricultural products etc.), healthcare and electronic components.

Market capitalisation

In terms of market capitalisation, the Mainland A-share market has become the world’s third largest market behind the US and Japan in 2013.

In the last decade, the market capitalisation of the Mainland A-share market has grown by almost seven-fold. The ratio of the total market capitalisation of the Mainland A-share market over GDP was 43% in 2013, which was lower when compared with international figures such as 143% for the US and 93% for Japan.

Turnover

The A-share market is a relatively liquid one, with its average daily turnover ranking second globally. In terms of market liquidity which is reckoned as the ratio of turnover and market capitalisation, it is one of the most liquid markets in the world.

  2009 2010 2011 2012 2013
Mainland A-shares (billion RMB) 141.6 125.3 97.1 67.5 96.2

About the SSE 180 and SSE 380 Indices

The sectors covered by the SSE 180 Index include: energy, raw materials, industrials, consumer discretionary, consumer staples, healthcare, financials and properties, information technology, telecommunication services and utilities.

The sectors covered by the SSE 380 Index include: raw materials, pharmaceuticals, biotechnology and life sciences, capital goods, food, beverages and tobacco, transportation, retailing, utilities, consumer durables and apparel, software and services, automobiles and auto parts, energy, communications equipment, technology hardware and equipment, media, semiconductor products and equipment life sciences, household and personal products, food and staples retailing, consumer services, real estates, commercial services and commercial products, healthcare equipment and services, banking, integrated financials, insurance and telecommunication services.

The constituents stocks of the SSE 180 and SSE 380 indices will be reviewed every half a year on the basis of stability and dynamic tracking. Constituent adjustments will be made according to the results of the review.

The Index Advisory Committee of SSE will usually meet at the end of May and November every year to review the constituent stocks of the SSE 180 Index, while adjustments will be implemented on the next trading day after the close of the second Friday in June and December each year.

Adjustments in the sample stocks of SSE 380 Index will be implemented on the next trading day after the close of the second Friday in June and December each year.

Results announcement

Mainland listed companies are required to announce their quarterly results every three months by publishing quarterly, half-yearly and annual reports.

Mainland market risks

Announcements on corporate actions

Trade suspension mechanism for Mainland A-shares

Disclosure obligations

Any change in the ownership of listed A-share companies will be announced under the List Companies Announcements section on SSE’s website (simplified Chinese only).

 

Abbreviations:
ChinaClear: China Securities Depository and Clearing Corporation Limited
CSRC: China Securities Regulatory Commission
HKEx: Hong Kong Exchanges and Clearing Limited
HKSCC: Hong Kong Securities Clearing Company Limited
SEHK: The Stock Exchange of Hong Kong Limited
SFC: Securities and Futures Commission
SSE: Shanghai Stock Exchange