Term: A-Shares
Type: Equity class
Used in: Chinese stock market, mutual funds
Also Known As: China A-shares, Class A shares
Definition
A-Shares refer to domestically traded shares of Chinese companies that are listed on the Shanghai or Shenzhen Stock Exchange. These shares are denominated in Chinese yuan (RMB) and are primarily available to mainland Chinese investors.
International investors can only access A-Shares through specific programs such as the Qualified Foreign Institutional Investor (QFII) scheme or Stock Connect.
In a different context, mutual funds may also offer Class A shares, which are sold with a front-end sales load or commission. These are commonly used by financial advisors and brokers.
Key Features
- China A-shares are traded on mainland Chinese exchanges
- Denominated in RMB
- Primarily for domestic investors
- Limited foreign access via QFII or Stock Connect
- In mutual funds, A-shares may carry front-end fees
Common Use Cases
- Investing in Chinese domestic equities
- Analyzing market access for foreign investors
- Comparing A-shares with B-shares or H-shares
- Evaluating mutual fund share classes and fees
Benefits or Advantages
- Exposure to China’s internal economy
- Often includes blue-chip stocks and state-owned enterprises
- May offer faster growth opportunities than developed markets
- In mutual funds, A-shares may offer lower ongoing expenses
Examples or Notable Applications
– Kweichow Moutai trades as an A-share in Shanghai
– Tencent is not an A-share; it trades in Hong Kong (H-share)
– MSCI China A Inclusion Index tracks performance of A-share market
– U.S. mutual funds may offer A-shares with sales commissions
External Links
This post is for informational purposes only and does not constitute investment advice.