History of the United States and Chinese Stock Exchanges

The American and Chinese stock exchanges have a rich
history. Both have had a phenomenal history with both
having great ups and very bad downs.

The New York Stock Exchange or NYSE was formed on May 17,
1792. 24 stock brokers signed an agreement called the
Buttonwood Agreement under of course but what else, a
buttonwood tree. This was the start of the New York Stock
& Exchange Board in its infancy. By March 8, 1817 the name
became official and later in 1863 to what we all know now
as the New York Stock Exchange. The NYSE location started
off in a small room rented for $200 a month in 1817 located
at 40 Wall Street. From then on it grew and grew out
growing that little room in to the building that we know
today.

The first share traded at the Shanghai Stock Exchange was
in 1866. In 1891 during the mining shares boom, foreign
businessmen founded the "Shanghai Sharebrokers Association"
headquartered in Shanghai as China's first official stock
exchange. In 1904, the association applied for application
in Hong Kong under the provision of the Companies ordinance
and was renamed as "Shanghai Stock Exchange" which we know
of by that same name today.

By the 1930's, the Shanghai Stock Exchange has become the
financial center for the far east, with people from China
and from other countries could trade stocks, government
bonds, debentures, and futures. The Stock Exchange was
halted for a number of years between December 8, 1941 and
sometime in 1946 when invading Japanese forces occupied the
Shanghai International Settlement. By 1949 the Shanghai
Stock Exchange was closed due to the rise of Communism.

In 1978 after the cultural revolution, Deng Xiaoping
re-opened China to the world. By 1990 the Shanghai Stock
Exchange was back in action after it was suspended of
operation since 1949.

Each stock exchange has endured many hardships over the
years. On October 24, 1929, The Wall Street Crash of 1929,
also known as the Crash of '29 and Black Thursday, was one
of the most devastating stock market crashes in American
history. Share prices on the NYSE collapsed. Stock prices
fell on that day and they continued to fall, at an
unprecedented rate, for a full month. This caused the
whole country to nearly melt down. This financial rift was
felt all over the world, even in the Shanghai Stock
Exchange.

As mentioned before, The Shanghai Stock Exchange endured
two major blows; one being the Japanese occupation in 1946
and the suspension of operations for over 40 years in 1950.

Both of these Stock Exchanges went through years of what
experts would probably call tough life but as of the
present they are both flourishing. On July 19th, 2007, Dow
Jones Industrial Average at the NYSE, closed above 14,000
for the first time in its history. In 2007 "a stock market
frenzy" as speculative traders rush into the market, making
China's stock exchange temporarily the world's second
largest in terms of turnover.

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This article was written for our friends at Wall Street Ren
- http://www.wsren.org to show the bridge between the US
and Chinese stock exchanges. Article written and
distributed by Steve Cancel, IT Manager of Michigan
Computer Repair - http://www.slcomputerrepair.com .