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Shanghai Composite - two-day‘s maximum rise, after the shocking collapse.

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SHCOMP:IND - a key index of SSE (Shanghai Stock Exchange) showed a maximum two-day growth seen since 2008. Today's result is + 4,54%, a level reached 3,877.803. (Yesterday was + 5.76%).

Shanghai Composite-10july

After the huge collapse, the regulator introduced a number of restrictions on the exchange, but nearly 33% of companies had stopped trading shares. Trader of Shenwan Hongyuan Group Co. E told Bloomberg, that was just needed a little time to AFFF measures taken by the CSRC. Now he says the market is recovering without serious consequences for the all market system.

Unlike HKEx (Hong Kong Exchanges and Clearing Limited), which has the function of "magnet" for foreign capital, SSE is only partially open to foreign investors and its main task is to retain and develop the domestic capital. Chinese authorities see SSE as a market where they are traded Chinese assets of Chinese citizens with Chinese currency. This approach turns and indirect impact on AUD, which due to the strong trade volumes Australia to China is used as first reserve currency fluctuations against the Chinese yuan.

On the Shanghai Stock Exchange are concentrated leaders and monopolies in different sectors of the Chinese economy (such as China Unicom, China Railway Construction, Bank of Communications, Air China, Hainan Airlines, SAIC Motor, Industrial and Commercial Bank of China, etc ...) Traditionally, SSE is seen as an indicator of the actual financial strength of the domestic economy of China.

The structure created by the Chinese authorities with specialization exchanges separately to foreign and domestic capital to enable the State to precisely control all volumes capital and financial flows.


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