Money & Finance › Markets of the world › World stock markets: about $158 trillion, 44% of it in the US
China's stock markets: the Shanghai and Shenzhen exchanges
Both opened Dec 1990· Institution or agency
Fact, law or dataA rule, statute, definition or measured number.
Mainland China's two stock exchanges, Shanghai and Shenzhen, opened in December 1990 and together form the world's second-largest stock market.
See it on the Money & Finance map →How it works
Shanghai lists most big state-owned banks and energy firms; Shenzhen leans to private and tech companies, and Shanghai's STAR board (2019) hosts chip and tech start-ups. Mainland 'A-shares' trade in yuan with daily price limits, usually 10%, and shares bought cannot be sold the same day. Total value passed 100 trillion yuan (about $14 trillion) in August 2025. The regulator, the CSRC, controls IPO timing, and state funds nicknamed the 'national team' buy during selloffs.
Why it matters
China is the second-largest stock market, yet foreigners own only a few percent, so prices reflect domestic savers and government policy more than global investors.
Facts, rules and data
Exchange and CSRC statistics, China Securities Depository and Clearing account data, and index providers such as MSCI, which began adding A-shares to its emerging-markets index in 2018.
Debates and risks
How much state buying props up prices, and whether listed companies' profits and payouts will rise enough to reward long-term investors.
Inside this (2)
Connections (3)
▸China's stock markets: the Shanghai and Shenzhen exchanges connect to foreign investors through Hong Kong Exchanges (HKEX) and the Hang Seng indexFact, law or data
The connection
China limits money flowing in and out, so Hong Kong serves as the doorway. Since November 2014 Stock Connect has let foreigners buy Shanghai and later Shenzhen shares through Hong Kong brokers ('northbound') and mainland investors buy Hong Kong shares ('southbound'). The money moves in a closed loop and returns to its home market when sold.
When and why
Shanghai–Hong Kong Connect opened November 17, 2014; Shenzhen joined on December 5, 2016; Bond Connect followed in July 2017.
How we know
HKEX publishes daily Stock Connect turnover and holdings; China's CSRC and Hong Kong's SFC issued joint announcements launching each link.
Debates and risks
Whether Beijing will open its capital account further or keep this managed doorway, and how much US–China tensions limit its use.
▸China's stock markets: the Shanghai and Shenzhen exchanges are driven largely by retail traders, illustrating Behavioral finance: how investors really behaveMainstream view
The connection
Individuals do a large share of mainland trading, by various estimates 60–80% of turnover. Studies find herding, chasing recent winners, a taste for cheap 'lottery-like' shares and very high turnover, the patterns behavioral finance predicts. That helps explain China's sharp booms and busts.
When and why
Shanghai and Shenzhen; China had over 200 million investor accounts by the 2020s, according to its securities clearing agency.
How solid is the link?
Exchange investor-structure reports and academic studies of Chinese trading data; the retail share varies by source and is falling as funds grow.
Debates and risks
How much of China's volatility is investor psychology versus policy surprises, daily price limits and state buying.
▸China's stock markets: the Shanghai and Shenzhen exchanges are second only to the US among World stock markets: about $158 trillion, 44% of it in the USFact, law or data
The connection
Shanghai and Shenzhen together passed 100 trillion yuan, about $14 trillion, in August 2025, second only to the US among national markets. Yet foreigners own only a few percent of A-shares, and global indexes give China less weight than its size because of capital controls and limited access.
When and why
Mainland China; the milestone was crossed on August 18, 2025, during a rally to decade highs.
How we know
Exchange data reported by China Daily and others, SIFMA and World Federation of Exchanges rankings, and MSCI index weights.
Debates and risks
Whether China's market size or its smaller index weight better reflects its importance for global investors.