Published on : 03/07/2024

On July 3, 1991, Shenzhen Stock Exchange (SZSE) officially started its operation.

The SZSE was established on December 1, 1990, but it can be traced back to 1986.

At that time, the enterprise structure in Shenzhen had evolved into a diversified ownership led by state ownership, among which "three capitals" (三資) (Sino-foreign joint ventures, Sino-foreign cooperatives, and foreign investments) and "three supplies and one compensation" (三來一補) (processing with supplied materials, processing according to supplied samples, assembling with supplied parts, and compensation trade) projects performed particularly well.

During the period when state finances were challenging and credit was tight, state-owned enterprises needed more capital for development in order to compete, which led to the approval for the reform of the shareholding system.

One of the outcomes was the transformation of the original rural credit cooperatives into the Shenzhen Development Bank (深圳發展銀行), which became the first bank in China that allowed individual shareholdings and the first public listing of a financial institution.

On April 1, 1988, the Shenzhen Development Bank began the earliest securities transactions at the counter of the special economic zone's securities company.

Following that, Shenzhen City Guotou Securities Department and Bank of China Securities Department successively started their operations.

The trade of "old five" stocks at the counters of the "old three" securities departments marked the beginnings of the Shenzhen securities market.

By November 1989, the Shenzhen municipal government decided to establish the SZSE, which entered into trial operation from December 1 of the following year.

In April 1991, the SZSE was officially approved for establishment by the People's Bank of China.