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
- ↑ Introduction to B-Share Trading System. Shanghai Stock Exchange.
- ↑ SSE Trading Rules. Shenzhen Stock Exchange.
- ↑ Circular on the Promulgation of the Trading Rules of Shanghai Stock Exchange. Shanghai Stock Exchange.
- ↑ SSE Trading Rules. Shenzhen Stock Exchange.
- ↑ Trading & Clearing System. Shanghai Stock Exchange.
- ↑ Introduction to B-Share Trading System. Shanghai Stock Exchange.
- ↑ SSE Trading Rules. Shenzhen Stock Exchange.
- ↑ Trading Summaries. Shanghai Stock Exchange.
- ↑ Statistics By Securities. Shenzhen Stock Exchange.
