Shanghai was China's first city to see the appearance of stocks, stock trading and stock exchanges. Stock trading started in Shanghai as early as 1860s. In 1891, the Shanghai Sharebrokers Association was established, which was regarded as the primitive form of stock bourses in China. Later in 1920 and 1921, the Shanghai Security Goods Exchange and the Shanghai Chinese Security Exchange commenced operations respectively. By the 1930s, Shanghai had emerged as the financial center of the Far East, where both Chinese and foreign investors could trade stocks, debentures, government bonds and futures. In 1946, Shanghai Securities Exchange Co., Ltd. was created on the basis of Chinese Security Exchange, but ceased operations three years later in 1949.
Since 1980, China's securities market has evolved in tandem with the country's introduction of reform and opening up policy and the development of socialist market economy. In 1981, trading in treasury bonds was resumed. In 1984, stocks and enterprise bonds emerged in Shanghai and a few other cities. On November 26, 1990, Shanghai Stock Exchange (SSE) came into existence, and on December 19 of the same year, it started formal operations.
After 28 years of rapid growth, SSE has developed into a comprehensive exchange with stocks, bonds, funds and derivatives products, world-class exchange system and communication infrastructure, and effective self-regulatory system. With these advantages, the scale of the Shanghai securities market and the number of investors are growing fast.