The SSE has grown to the 5th largest exchange in the world, by market capitalization, since its first listing in June of 1866. The SSE of 1866 was much different than the SSE of 2016, most notably was the restriction on foreign investment. The Japanese would force China to change this policy in 1895 with the Treaty of Shimonoseki. In 1914 the SSE was forced to close for three months because of WWI. After WWI the SSE would stay open until closing for forty nine years, starting in 1941 with Japanese soldiers occupying Shanghai. The communist revolution of 1949 would force the SSE to stay closed. Following the revolution it was the People 's Republic of China’s (PRC) attitude towards anything resembling capitalism that kept the SSE from reopening. Deng Xiaoping’s began welcoming foreign investment into China’s economy with his rise to power in 1979, by 1981 China resumed trading treasury bonds. In 1984 private issuances of company stocks and corporate bonds began surfacing in Shanghai and other major cities. November 26, 1990 the SSE reports that it will re-open. December 19, 1990 the SSE begins normal operations.
Starting in 1866 with the first listing, the SSE has transformed from a closed market to one that welcomes foreign investment issuing history’s largest IPO, raising 22.1 Billion USD for the Agriculture Bank of China. Since re-opening in 1990 the SSE has grown to the world’s fifth largest exchange, first in Asia. The transformation of modern Chinese securities, brought on by Deng Xiaoping, can be divided into four periods starting in 1987. The first period is from 1987 to 1995, the second is from 1196 to 2001, the third is from 2001 to 2005 and the last is from 2005 to