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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.