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The Shanghai Stock Market, the most modern in China and the proud owner of the largest trading floor in the world, is a curiously restricted animal. No foreign companies are allowed to list on it and there are no foreign stockbroking companies allowed to buy seats on the exchange.
There are two kinds of shares in China, 'A' and 'B', and this too illustrates the split personality of how the stock market works in Shanghai. 'A' listed companies can only sell shares to Chinese citizens and 'B' shares can only be sold to foreigners. To further complicate things Chinese nationals often buy 'foreigner-only' 'B' shares by circumnavigating regulations and buying the shares through offshore representatives.
The Chinese authorities do not know what to make of their unruly capitalistic creation and last year reined in market growth by tightening restrictions on transferring shares. With the economy showing signs of weakness, however, they are now encouraging market speculation. Seemingly impressed by real growth in the once languishing 'B' share market, authorities have adopted a 'hands off' approach the market.
For now, however foreign companies are not allowed to list on the Shanghai Stock Market.
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J & A Securities
Room 302, 466 Changde Road
Tel: +86-21 6267-2001
Fax: +86-21 6271-2017
Paribas
31/F, China Merchants Tower, 66 Lujiazui Road
Tel: +86-21 5879-7725
Fax: +86-21 5882-6780
Sheng Ying Wan Guo Security Co.
711 Lu Jia Bang Road
Tel: +86-21 6258-0818
Fax: +86-21 6467-8588
Hua Xia Security Co.
711 Lu Jia Bang Road
Tel: +86-21 6305-3008
Fax: +86-21 6305-6961
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Guo Tai Security Co.
Yan Pin Road
Tel: +86-21 6258 0818
Fax: +86-21 6258 1911
Hai Tong Security Co.
Tong Shan Road
Tel: +86-21 6584-9618
Fax: +86-21 6258-7698
Nan Fang Securities Co.
216 Zhong Shan Bei Yi Road
Tel: +86-21 6540-8178
Fax: +86-21 6540-9185
Oriental Securities Co
756 Ju Lu Road
Tel: +86-21 6258-8800
Fax: +86-21 6256-6000
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Publicly listed companies
A total of 513 companies-consisting of A and B share companies-are listed on the local stock exchange, with a total market capitalization is at 1.6 trillion RMB. Below are the Top 10 companies, biggest first, what they do and their 1998 revenues and profits (in million RMB).
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Sichuan Changhong
Core business: Color TVs
1998 revenues: 11602.67
1998 profits: 2003.95
Shanghai Petrochemicals
Core business: Petrochemicals
1998 revenues: 11080.85
1998 profits: 237.12
Yanzhou Coal and Mining
Core business: Mining
1998 revenues: 4333.23
1998 profits: 753.87
Handan Iron and Steel
Core business: Iron and steel
1998 revenues: 4858.96
1998 profits: 750.41
Qilu Petrochemicals
Core business: Petrochemicals
1998 revenues: 3932.84
1998 profits: 519.55
Guangzhou Holding Co.
Core business: Electricity
1998 revenues: 2658.08
1998 profits: 523.93
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Shen Neng Shareholding
Core business: Energy
1998 revenues: 91.07
1998 profits: 1556.58
Dongfang Communications
Core business: Telecommunications equipment
1998 revenues: 5686.20
1998 profits: 222.06
Shanghai Automobiles
Core business: Cars
1998 revenues: 1936.55
1998 profits: 702.34
Shanghai Construction
Core business: Construction
1998 revenues: 8454.76
1998 profits: 216.99 |
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Source: 'Listed Companies', published by the Shanghai Stock Exchange, August 1999
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