The Chinese stock market consists of two stock exchanges, one of which is the Shenzhen Stock Exchange (SZSE), which is one of the largest in Asia. It was founded in 1990 and is headquartered in Shenzhen, a major city and financial center in southern China. The exchange operates under the supervision of the China Securities Regulatory Commission (CSRC) and cooperates with many major international stock exchanges through memorandums of understanding. SZSE lists 1,870 equity companies and has a market cap of US$ 3.2 trillion. It also houses mutual funds and fixed income products.
Among those listings are well-known and actively traded companies such as the Ping An Bank, Vanke, TCL Corporation, Weichai Power and the Suning Commerce Group. The SZSE owns and manages different types of indices, such as sector indices, thematic indices, composite indices, strategic indices and scale indices. The flagship index is the SZSE Component Index, representing the performance of the largest and most liquid stocks of mainland China-based companies. The number of constituents is fixed at 500 and the composition of this comprehensive benchmark index is reviewed biannually.