Stock type (China)

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Due to legal restrictions, China's stock market is divided into different segments that lead to different types of stocks . A company can issue both A and B shares. However, since no arbitrage transactions are allowed between the types of shares, the value of the two shares may differ significantly.

A share (A share)

A share of the Shanghai Stock Exchange or the Shenzhen Stock Exchange designated with an A-Share refers to the share of a company, which is traded in Renminbi , the currency of the People's Republic of China . Originally, these shares could only be traded by Chinese citizens. Since 2002 these have also been available to so-called Qualified Foreign Institutional Investors (QFII) . All A shares on the Shanghai Stock Exchange are listed in the SSE A Share Index , which was launched on February 21, 1992.

B share (B share)

A share of the Shanghai Stock Exchange or the Shenzhen Stock Exchange designated with a B-Share refers to the share of a company that is traded in a foreign currency. The face value of B shares is set in Renminbi. In Shanghai, B shares are traded in US dollars and in Shenzhen in Hong Kong dollars . In contrast to the A-Shares, B-Shares are only available for foreign investors and, since 2001, for Chinese citizens who open accounts for foreigners (especially overseas Chinese ). All B shares on the Shanghai Stock Exchange are listed in the SSE B Share Index , which was launched on August 17, 1992.

H-Share

As H-shares shares are considered by companies of mainland China, which at the Hong Kong Stock Exchange are traded. A listing as an H-Share can take place in addition to or instead of a B-Share listing in order to be tradable for foreign investors. The accounting is based on the international standard.

The first Chinese company to be listed on the Hong Kong Stock Exchange was Tsingtao Brewery in 1993 .

The largest IPO in history was carried out by the Industrial and Commercial Bank of China in October 2006. 14.95 billion A-shares and 40.7 billion H-shares were issued. The value of the placement was the equivalent of around 22 billion US dollars.

The most important Chinese companies are listed in the Hang Seng China Enterprises Index , including the so-called Red Chips .

Mainland Chinese companies account for around 56% of the market capitalization on the Hong Kong Stock Exchange.

Listing on non-China stock exchanges

Individual evidence

  1. ↑ HKEx announcement on accounting and auditing standards for mainland incorporated companies listed in Hong Kong. (PDF, 251 kB) HKEx, December 10, 2010, accessed on November 19, 2014 .
  2. ^ Mark Mobius : The ABCs of China's Share Markets. In: CNBC . October 16, 2012, accessed November 19, 2014 .
  3. ↑ Fact sheet on the listing of H shares. August 6, 2013 (PDF, 181 kB) August 6, 2013, accessed on November 19, 2014 (English).
  4. ↑ a b ICBC China. IPO raises $ 22 billion. In: Manager Magazin . October 23, 2006, accessed November 19, 2014 .
  5. ↑ HKEx Monthly Market Highlights - March 2014. (No longer available online.) Hong Kong Exchanges and Clearing Limited, March 31, 2014, archived from the original on November 29, 2014 ; accessed on November 19, 2014 (English).

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