China B shares are basically stocks of enterprises
that are registered in PRC and listed in either Shanghai
or Shenzhen Stock Exchange in specific foreign currencies.
The currency used in Shanghai B shares is US dollar
and the one used in Shenzhen counterpart is HK dollar.
What is the difference between
China B Shares, A shares and H shares?
Originally, B-share listed enterprises
were companies, which require foreign currencies for their
operations. B shares market only opened to foreign individual
or institutional investors. Since February, 2001, B shares
market has opened to mainland citizens who possess foreign
currencies, B shares are redefined to be shares listed
in China but traded in specific foreign currencies.
A shares market only opens to mainland citizens and
the denominated currency is RMB.
H shares are stocks of enterprises that are registered
in PRC and also basically operate in PRC but are listed
in Hong Kong Stock Exchange.
Some enterprises have issued more than one kind of
the above-mentioned shares.
Enterprises which have been recorded for
2 consecutive fiscal losses, their listed A / B shares
have to be distinguished by the category ST (Special Treatment)
shares. Their daily price fluctuation limit is bounded
to be 5% of the closing price of the previous trading
day.
Enterprises which have been recorded for
3 consecutive fiscal losses, their listed A / B shares
have to be distinguished by the category PT (Particular
Transfer) shares. The trading day for PT shares is only
on Friday. Price fluctuation is bounded to be ceiling
at 5% of the closing price of the previous trading day
but no ground limit.
B Share
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