Analysis of Risks and Opportunities of the Shanghai Stock Exchange in the Global Economy

Abstract

The purpose of the article is a comprehensive analysis of the functioning and development of the Shanghai Stock Exchange in the conditions of internationalization of the world economy and strengthening of China's role in the international financial arena. The exchange is presented as a crucial element of the global financial system, with the identification of its potential, problems and prospects in the conditions of transformation of the world economy of the XXI century. The article uses a mixed methodological approach that combines both quantitative (statistical, dynamic) and qualitative (comparative, normative) research methods. Special attention is paid to the dynamics of capitalization, trading volumes, investment attraction and evolution of SSE market infrastructure. The paper emphasizes the significance of the RMB as a growing international currency and its role in enhancing the competitiveness of the Chinese financial market. The paper also describes the specifics of the SSE's trading organization, including the dual currency system of A and B shares, the absence of a short-selling mechanism and market makers, and the high proportion of individual investors. Data on the number of listed companies, turnover volumes and changes in major indices, including the SSE Composite, are given. It analyzes the place of the Shanghai Stock Exchange among the world's largest stock exchanges in terms of capitalization, where it ranks 4th. A special emphasis is made on internal and external risks to which the Chinese stock market is exposed, including dependence on macroeconomic conditions, geopolitical factors and insufficient development of the legal framework. At the same time, it is shown that effective state management measures and consistent internationalization policy allowed China to strengthen the position of the SSE as one of the central elements of the international financial system. The article demonstrates that despite the existing challenges, the Chinese stock market maintains a steady trend towards growth and modernization.