H-Shares
A share of a company based on the Chinese mainland that is listed on the Hong Kong Stock Exchange or other foreign exchange. H-shares are still regulated by Chinese law, but they are denominated in Hong Kong dollars and trade the same as other equities on the Honk Kong exchange.
H-shares on the exchange are automatically included in the Hang Seng China Enterprise Index, provided that they maintain the Hong Kong exchange regulatory requirements. Investopedia Says:
H-shares are available for more than 90 Chinese companies, giving investors at least some access to most of the major economic sectors such as financials, industrials and utilities. In 2007, the Chinese government decided to allow mainland investors to invest in the Hong Kong exchange, which greatly increased the demand for H-shares, as mainland investors were previously forbidden from investing in the exchange. China still offers A-shares in many of the same companies, but only mainland residents can invest in them. Related Terms:
B-Shares
China Concepts Stocks
China Securities Regulatory Commission - CSRC
Chinese Wall
Dow Jones BRIC 50 Index
Hang Seng Index - HSI
HKD
Red Chip
Shanghai Stock Exchange |