Publicly-traded companies in China generally fall under three categories of shares: a-shares, B-shares and shares. -Stocks represent publicly listed Chinese companies that trade on Chinese stock exchanges such as Shenzhen and Shanghai stock exchanges. State-owned Chinese companies with H-shares are regulated by Chinese law, and are freely tradable to anyone.
What’s a-shares in China?
-Shares are shares of companies based in China listed on the Shanghai stock exchange or Shenzhen. -Shares generally are available only for trading on mainland Chinese citizens. However, foreign investment in these companies is allowed only through a regulated structure known as the qualified foreign institutional investor system.
-The shares are issued in China under Chinese law and not only quoted in Renminbi.
What are h-shares in China?
H-shares are shares of publicly traded Chinese companies listed on Hong Kong stock exchange. H-shares are issued in China under Chinese law and subject to the requirements of the listing of the stock exchange of Hong Kong is.
The rules specify that annual accounts should follow the Hong Kong or international accounting standards. In addition, the articles of the company companies should include the following sections examine a wide variety of domestic shares and foreign shares, including the shares and the rights granted to each customer.
The differences between stock and H-stock
Unlike shares of companies listed on the Shanghai or Shenzhen stock exchanges, which trade denominated in Chinese yuan shares of Chinese companies listed on the Hong Kong stock exchange listed and trade denominated in Hong Kong dollars.
In addition, H-shares were opened for trading on all investors, but only Chinese domestic investors and qualified foreign institutional investors can trade shares. After 2007, China let mainland Chinese investors to buy stocks or shares of companies listed on the Shanghai stock exchange. Until then investors can only buy shares, despite the fact that the shares were also offered. Because foreign investors can trade H-shares, a shares are more liquid than stocks.
Usually the price difference between company stocks and shares. A-shares typically trade in H-shares.