Wealth Jotter
Learn More about Shares 5
  • 友善列印版本

    10/2017

    Source: China Securities Regulatory Commission

     

    Shares can seem sometimes be as hard to grasp as a boundless sea, and it's normal to find that in the daily financial news there is lots of terminology that is quite incomprehensible. In this issue of Wealth Jotter, we will take a look at the Chinese share classes and try to understand the differences between the types of shares traded. What's the difference between A, B, and H shares traded in stock exchanges? Well, as you'll find out below, it's all about location and the target investor.

     

    A Shares

    "A Shares" are securities of Chinese incorporated companies that trade on either the Shanghai or Shenzhen stock exchanges. They are quoted in Renminbi (Chinese Yuan) and can only be traded by Mainland residents institutes and organizations or under the Qualified Foreign Institutional Investors (QFII), the Renminbi Qualified Foreign Institutional Investor (RQFII) rules, or via the Stock Connect schemes.

     

    B Shares

    "B Shares" are securities of Chinese incorporated companies that trade on either the Shanghai or Shenzhen stock exchanges with face value denominated in Renminbi. "B Shares" are quoted in U.S. Dollars on the Shanghai Stock Exchange and Hong Kong Dollars on the Shenzhen Stock Exchange. They can be traded by non-residents in the Mainland. Residents with appropriate foreign currency dealing accounts can also trade "B Shares" since 2001.

     

    H Shares

    "H Shares" are securities of companies incorporated in the Mainland that trade on the Hong Kong Stock Exchange. That is why they are called "H Shares", the "H" means "Hong Kong". They are quoted and traded in Hong Kong Dollars. Like other securities trading on the Hong Kong Stock Exchange, there are no restrictions on who can trade "H shares".

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