BIZCHINA / Backgrounder
What are A shares, B shares, H Shares?
(CRI)
Updated: 2006-03-17 16:08
Q: What is A shares?
A: These are shares in Chinese companies issued in China under Chinese
law. They are denominated in Chinese currency, the renminbi, and are
listed on the Shanghai or Shenzhen stock exchanges. Currently, only
Chinese residents of China may trade the 776 companies listed in
Shanghai, and the 489 companies listed in Shenzhen.
Q: What is B shares?
A: B Shares are foreign-invested shares issued domestically by PRC's
companies. B Shares are also known as Renminbi Special Shares. B Shares
are issued in the form of registered shares and carry a face value
denominated in Renminbi. B Shares are subscribed and traded in foreign
currencies and are listed and traded in securities exchanges inside
China. The B Share Market came into existence in 1991. By the end of
April 1999, there were totally 107 B Share issuers. There were 54 B Share
companies listed in Shenzhen with a total capitalization of RMB10.94
billion whereas there were 53 B Share companies listed in Shanghai with a
total capitalization of RMB9.778 billion. The B Share Market has
attracted a considerable amount of foreign investors. The Market provides
an additional channel for foreign capital thereby enhancing the progress
of the evolvement of PRC's securities market.
Q: What is H shares ?
A:H shares are shares in Chinese companies issued in China under Chinese
law. They are listed on the Hong Kong Stock Exchange and subject to its
stringent listing and disclosure requirements. The shares are denominated
in H.K. dollar and trade like any other shares listed on the Hong Kong
Exchange.
There are now 91 companies offering H shares giving exposure to more than
a dozen sectors including Telecommunications, Insurance, Real Estate,
Airlines, Logistics as well as Infrastructure such as roads and
electricity, Oil, Mining and Basic Materials such as steel, cement,
aluminum and petrochemicals. They are required to meet the same standard
of disclosure required of all companies listed on the SEHK.
(For more biz stories, please visit Industry Updates)
Most Popular Stories in 48 Hours
� Baidu's Li smells fortune in mobile phone users
� Shanghai Auto turns around
� DVD royalty agreement signed
� Central bank raises lending rate
� American way of life
Today's Top News
� President ends African tour by drumming for dancers
� Housing fund ups mortgage rates
� Militants warn Chinese oil companies
� Q1 urban unemployment rate at 4.2 pct
� Pay rises by 16% for State sector workers
Top Biz News
� China's state pension fund permitted to invest overseas
� Lower Q1 NPL ratio for major banks
� Housing mortgage loan rates raised
� China builds railway corridor in rust belt region
� Pay rises by 16% for State sector workers
Chinesepod
