BROWSE

A-Shares

What are 'A-Shares'

A-shares is an expression designating shares that trade on the two Chinese stock exchanges, that is, the Shanghai Stock Exchange and the Shenzhen Stock Exchange. A-shares are shares of mainland China-based companies and were historically only available for purchase by mainland citizens since foreign investment was restricted. Since 2003, select foreign institutions are allowed to purchase them through a program called the Qualified Foreign Institutional Investor (QFII) system.

Explaining 'A-Shares'

A-shares are defined in opposition to B-shares. B-shares are quoted in foreign currencies (such as the U.S. dollar) and are open to both domestic and foreign investment, although they are difficult to access for most Chinese investors, most notably for currency exchange reasons. A-shares, on the other hand, are only quoted in Chinese renminbi. Some companies have their stock listed on both the A-shares and B-shares market. Due to the limited access of Chinese investors to B-shares, stock of the same company often trades at much higher valuations on the A-shares market than on the B-shares market.

Performance of A-shares

The key performance index for A-shares is published by the Shanghai Stock Exchange and is called the SSE 180 Index. To compose the index, the exchange selects 180 stocks listed on SSE. To ensure adequate representation, the selection is diversified between sector, size and liquidity. Thus, the index's performance benchmark reflects the overall situation and operation of the Shanghai securities market.

Future of A-shares on the World's Markets

As China grows from an emergent market to attempt to become one of the advanced economies of the world, there is a tremendous amount of demand for Chinese equity. Regulators at the stock exchanges continue the ongoing process of attempting to make A-shares more broadly available to foreign investments and having them recognized by the world's investors.


Further Reading


Can environmental management improve financial performance: An empirical study of A-shares listed companies in China
www.sciencedirect.com [PDF]
… To study the impact of environmental management on a company's financial performance, we selected A-shares listed companies from 2007 to … and the financial data was from the China Stock Market & Accounting Research (CSMAR) economic and financial databases …

The information environment of China's A and B shares: Can we make sense of the numbers?The information environment of China's A and B shares: Can we make sense of the numbers?
www.sciencedirect.com [PDF]
… To study the impact of environmental management on a company's financial performance, we selected A-shares listed companies from 2007 to … and the financial data was from the China Stock Market & Accounting Research (CSMAR) economic and financial databases …

On the convergence of the Chinese and Hong Kong stock markets: a cointegration analysis of the A and H sharesOn the convergence of the Chinese and Hong Kong stock markets: a cointegration analysis of the A and H shares
www.tandfonline.com [PDF]
… To study the impact of environmental management on a company's financial performance, we selected A-shares listed companies from 2007 to … and the financial data was from the China Stock Market & Accounting Research (CSMAR) economic and financial databases …

Is US economic policy uncertainty priced in China's A-shares market? Evidence from market, industry, and individual stocksIs US economic policy uncertainty priced in China's A-shares market? Evidence from market, industry, and individual stocks
www.sciencedirect.com [PDF]
… To study the impact of environmental management on a company's financial performance, we selected A-shares listed companies from 2007 to … and the financial data was from the China Stock Market & Accounting Research (CSMAR) economic and financial databases …

Location of trade, ownership restrictions, and market illiquidity: Examining Chinese A-and H-sharesLocation of trade, ownership restrictions, and market illiquidity: Examining Chinese A-and H-shares
www.sciencedirect.com [PDF]
… To study the impact of environmental management on a company's financial performance, we selected A-shares listed companies from 2007 to … and the financial data was from the China Stock Market & Accounting Research (CSMAR) economic and financial databases …

A threat to dual-class sharesA threat to dual-class shares
www.law.harvard.edu [PDF]
… To study the impact of environmental management on a company's financial performance, we selected A-shares listed companies from 2007 to … and the financial data was from the China Stock Market & Accounting Research (CSMAR) economic and financial databases …

Market segmentation and price differentials between A shares and H shares in the Chinese stock marketsMarket segmentation and price differentials between A shares and H shares in the Chinese stock markets
www.sciencedirect.com [PDF]
… To study the impact of environmental management on a company's financial performance, we selected A-shares listed companies from 2007 to … and the financial data was from the China Stock Market & Accounting Research (CSMAR) economic and financial databases …

A Research on the Environment Information Disclosure of China Listed Companies: A Case Study of the Listed Manufacturing Industry of A-Shares Firms during the …A Research on the Environment Information Disclosure of China Listed Companies: A Case Study of the Listed Manufacturing Industry of A-Shares Firms during the …
en.cnki.com.cn [PDF]
… To study the impact of environmental management on a company's financial performance, we selected A-shares listed companies from 2007 to … and the financial data was from the China Stock Market & Accounting Research (CSMAR) economic and financial databases …

Behavioral finance in AsiaBehavioral finance in Asia
www.sciencedirect.com [PDF]
… To study the impact of environmental management on a company's financial performance, we selected A-shares listed companies from 2007 to … and the financial data was from the China Stock Market & Accounting Research (CSMAR) economic and financial databases …

Value relevance of earnings in an emerging capital market: the case of A‐shares in ChinaValue relevance of earnings in an emerging capital market: the case of A‐shares in China
onlinelibrary.wiley.com [PDF]
… To study the impact of environmental management on a company's financial performance, we selected A-shares listed companies from 2007 to … and the financial data was from the China Stock Market & Accounting Research (CSMAR) economic and financial databases …



Q&A About A-Shares


Which stock exchange publishes this index ?

The Shanghai Stock Exchange publishes this index .

Who can purchase A-shares?

Foreign institutions are allowed to purchase them through a program called QFII.

What does "advanced economy" mean?

An advanced economy is a country that has already become an advanced economy of the world, such as Canada or Germany or France.

What is the key performance index for A-shares?

The SSE 18 Index.

How do regulators make A-shares more broadly available to foreign investments and have them recognized by the world's investors?

By allowing select foreign institutions to purchase them through the QFII system.

Why was it historically only available for mainland Chinese citizens to buy A-shares?

Foreign investment was restricted in China until recently.

How often is it published ?

It is published daily .

What does "emergent market" mean?

An emerging market is a country that has not yet become an advanced economy of the world, but is growing rapidly and has potential to become one of these economies in the future.

What does "diversified between sector, size and liquidity" mean ?

Diversified means having different types of stocks (such as large cap stocks, mid cap stocks and small cap stocks) from different sectors (such as technology, financials and industrials). Liquidity refers to how easily shares can be bought or sold on exchanges with little impact on price movement.

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