-
Advertisement

BUSINESS TERMS

Reading Time:1 minute
Why you can trust SCMP
SCMP Reporter

A shares and B shares : Initially, trading in A shares was restricted to domestic investors only, while B shares were available to both domestic and foreign investors. However, after reforms in 2002, foreign investors were allowed to trade in A shares under the Qualified Foreign Institutional Investor system. There is a plan to eventually merge the two types of shares. A shares are priced in the yuan currency, while B shares are quoted in US dollars and Hong Kong dollars.

H shares : Hong Kong-traded shares of companies incorporated on the mainland and approved by the China Securities Regulatory Commission for a listing in Hong Kong. H shares are traded in Hong Kong dollars, or other currencies.

Red Chips : A red chip company is a Hong Kong-traded company that has at least 30 per cent of its shares owned by mainland investors, or indirectly through companies controlled by them. The most important difference between a red chip company and an H share company is that a red chip company is not mainland-registered.

Advertisement

Blue Chips : Stock of a large, national company with a solid record of stable earnings and a reputation for high-quality management and products. This term is often used to describe the shares included in major stock market indices, such as the Hang Seng Index.

Advertisement
Advertisement
Select Voice
Select Speed
1.00x