China H-Shares

From MarketsWiki

H-shares are common stocks issued by enterprises registered in the Mainland but listed on HKEx in Hong Kong (H-Shares' H stands for Hong Kong). H-shares are settled in Hong Kong dollars, but unlike B-shares listed on Shenzhen Stock Exchange, H-shares are denominated in Renminbi^[1]. Also, unlike A-shares or B-shares, H shares are a physical, paper stock certificate, settled on "T+2^[2]," and not subject to a price limit^[3]. In addition to foreign investors, (Chinese) qualified domestic institutional investors (QDIIs) are permitted to invest in H shares.^[4] Although individuals in the mainland are not allowed to invest directly in H shares, a new scheme unofficially called "H-share thru-train" was announced in August 2007^[5]. According to that scheme, individual investors will be able to trade H-shares through the Bank of China branch in Binhai, Tianjin. However, the State Council has not made the final decision on this matter.

References

1. ↑ Product Descriptions. HKEx. Retrieved on May 18, 2008.
2. ↑ Equities Leaflet. HKEx. Retrieved on May 18, 2008.
3. ↑ New Investment Express. Beijing Review. Retrieved on May 18, 2008.
4. ↑ Decree No. 46 of China Securities Regulatory Commission. China Securities Regulatory Commission. Retrieved on May 18, 2008.
5. ↑ The SAFE Approves a Pilot Program for Direct Foreign Portfolio Investments by Domestic Individuals. State Administration of Forgign Exchange. Retrieved on May 19, 2008.