A, B, H shares? Types of China shares


China Shares

Ever wondered what kind of investments are there available in the China and Hong Kong Stock Exchanges? Well, you could simply goggle them and you will probably find the answers but ask yourself again in 2 months time and most likely you will be doing the same again without putting it right in your memory block. Unless, you have an interest for China equity market that story might be different but if you are in it for the quick kill then it probably doesn’t really matter much from this post down.

A shares –  Securities in China market refers to stocks that trade on the Shanghai and Shenzhen exchanges.

B shares – Similarly, B shares are the same as A shares but their shares trade in USD. These stocks, known as “B shares”, and most likely used to raise capital overseas. B shares also allowed foreign investors to invest in the market without the restrictions.

H shares – Securities trade on the Hang Seng Index rather than on the mainland China and they are priced in HKD

Red chips – State-owned Chinese companies incorporated outside the mainland China and traded in Hong Kong.

P-chips – Nonstate-owned Chinese companies incorporated outside the mainland China and most often in certain foreign jurisdictions and traded in Hong Kong.

N-shares Chinese companies incorporated outside the mainland, most often in certain foreign jurisdictions, and U.S.-listed on the NYSE or Nasdaq (ADRs of H-shares or P-chips)

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