China B-Shares

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B-shares are common stocks listed inside China, which are quoted and settled in foreign currencies. B-shares are currently available for both overseas investors and domestic investors, and listed on either Shanghai Stock Exchange (SSE) or Shenzhen Stock Exchange (SZSE). The face value of B-shares is denominated and their prices are quoted in RMB, but B-shares listed on the SSE are settled in US dollars.[1], and those on the SZSE in Hong Kong dollars[2]

Like A-shares, B-shares are also subject to a 10-percent price limit[3][4], and booked electronically, but settled on "T+3" by the China Securities Central Clearing & Registration Corporation (CSCCRC)[5]. However, B-shares could still practically be sold off (there's no buyback because you can't short stocks in China) through turnaround trading after T+1 prior to T+3 settlement.[6][7]

The B-share market started in 1992, but until Feb. 19, 2001, the participation was limited to foreign investors. Currently, there are total 109 B-shares, of which 54 are listed on the SSE[8] and 55 on the SZSE.[9]

Other categories of listed shares issued by Chinese companies include A-shares, H-shares, N-shares and S-shares, according to the location of the stock exchange that hosts each category of shares and the kind of the investors for which it's meant.


References

  1. Introduction to B-Share Trading System. Shanghai Stock Exchange.
  2. SSE Trading Rules. Shenzhen Stock Exchange.
  3. Circular on the Promulgation of the Trading Rules of Shanghai Stock Exchange. Shanghai Stock Exchange.
  4. SSE Trading Rules. Shenzhen Stock Exchange.
  5. Trading & Clearing System. Shanghai Stock Exchange.
  6. Introduction to B-Share Trading System. Shanghai Stock Exchange.
  7. SSE Trading Rules. Shenzhen Stock Exchange.
  8. Trading Summaries. Shanghai Stock Exchange.
  9. Statistics By Securities. Shenzhen Stock Exchange.