H shares () refer to the shares of companies incorporated in
mainland China
"Mainland China", also referred to as "the Chinese mainland", is a Geopolitics, geopolitical term defined as the territory under direct administration of the People's Republic of China (PRC) in the aftermath of the Chinese Civil War. In addit ...
that are traded on the
Hong Kong Stock Exchange
The Stock Exchange of Hong Kong (, SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. It is one of the largest stock exchanges in Asia and the List of major stock exchanges, 9th largest globally by market ...
. Many companies float their shares simultaneously on the Hong Kong market and one of the two mainland Chinese
stock exchange
A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for ...
s in Shanghai or Shenzhen, they are known as A+H companies.
H shares are also held by a
nominee service company "HKSCC Nominees Limited" (HKSCC for
Hong Kong Securities Clearing Company), which was owned by
Hong Kong Exchanges and Clearing.
Price discrepancies between the H shares and the
A share counterparts of the same company are not uncommon.
A shares generally trade at a premium to H shares as the
People's Republic of China
China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
government restricts mainland Chinese people from investing abroad and foreigners from investing in the A-share markets in mainland China.
Tsingtao Brewery was the first enterprise to offer H-shares when it became the first Chinese firm listed on the Hong Kong Stock Exchange in June 1993.
Index for H shares
The index for H shares was called
Hang Seng China Enterprises Index. ().
See also
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Chip
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A share
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B share
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Red chip
Red chip stocks () are the stocks of mainland China companies incorporated outside mainland China and listed in Hong Kong. It refers to businesses based in mainland China and with (majority) shares controlled either directly or indirectly by a ...
companies incorporated outside mainland China but main business was related to mainland China, and listed in Hong Kong Stock Exchange
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P chip
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S chip
S chips () are Chinese companies listed on the Singapore Exchange. Their shares are known as S shares. S chips are incorporated in Singapore, the British Virgin Islands, the Cayman Islands and Bermuda and have their business operations in mainland ...
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N share
N-Shares () refers to Chinese companies listed on the NYSE, NASDAQ, or the NYSE MKT. The term stands for New York. They may or may not be incorporated in China, but they have their main business operations in mainland China. Most of them are incorp ...
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L share L-Shares () refers to Chinese companies listed on the London Stock Exchange. The listed companies are incorporated in the Cayman Islands, Bermuda, British Virgin Islands and Jersey, but they have their main business operations in mainland China.
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G share
G shares () refers to shares traded in the stock exchanges of mainland China that belong to companies that have accomplished stock right division reforms, and have regained business on the market. Owing to the provisional designation of the letter ...
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China Concepts Stock
References
Stock market terminology
Finance in Hong Kong
Finance in China
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