B-Shares
Definition of 'B-Shares'Shares in companies based in mainland China that trade on either the Shanghai or Shenzhen stock exchanges. B-Shares are eligible for foreign investment provided the investment account is in the proper currency (Shanghai B-shares trade in U.S. dollars, while Shenzhen B-shares trade in Hong Kong dollars). |
|
Investopedia explains 'B-Shares'B-shares trade alongside A-shares in the Chinese companies on the mainland exchanges. Changes in government regulation have allowed Chinese citizens to invest in both A-shares and B-shares after previously limiting investment to only the A-shares.B-shares are typically what a mutual fund or exchange-traded fund that invests in China will hold, along with H-shares from the Hong Kong Exchange and N-shares, which trade on the New York Stock Exchange. As part of a long-term effort to open up China's economy, plans are in place for the two share types to be combined in the future to allow for more uniform investment policies; if and when this occurs it should encourage more outside investment in the world's most populous country. |
Related Definitions
Articles Of Interest
-
Why China's Currency Tangos With The USD
Congress often debates pressuring China to appreciate its currency, but the yuan/dollar peg has benefits for both countries. -
Understanding BRIC Investments
Brazil, Russia, India and China are becoming more popular for investing, but there is still plenty of risk among BRIC countries. -
Investing In China
This emerging market is making strides in regulation and disclosure. -
Top 6 Factors That Drive Investment In China
FDI in China surpassed $100 billion in 2010, certain key factors drive foreign direct investment. -
Is there short selling in China?
The Chinese stock market has no history of short sales. However, in 2007, the Chinese government, in an effort to increase the types of financial instruments available to market participants, ... -
Which day is known as China's "Black Tuesday" and why?
On February 27, 2007, the Chinese stock market suffered a correction, causing choppy markets all over the world. The Shanghai Stock Exchange (SSE) lost 9% of its value and uncertainty caused ... -
Women: Invest In Your Financial Literacy
Learning about money may seem intimidating, but it's not as hard as it looks. -
4 Behavioral Biases And How To Avoid Them
Here are four common common behavioral biases for traders and how to minimize their effects on your portoflio. -
The NYSE And Nasdaq: How They Work
Learn some of the important differences in the way these exchanges operate and the securities that trade on them. -
Mutual Fund Ratings: Crucial or Insignificant?
Mutual fund ratings can help investors, but they have their drawbacks as well.
Free Annual Reports