Term: H-Shares
Type: Share classification
Listed on: Hong Kong Stock Exchange (HKEX)
Issued by: Companies incorporated in mainland China
Currency: Hong Kong dollars (HKD)
Accessible to: International and institutional investors
Definition
H-Shares are shares of mainland China-based companies that are incorporated in China but traded on the Hong Kong Stock Exchange. They are denominated in Hong Kong dollars and are available to foreign investors, offering a way to invest in Chinese companies under international trading standards.
Key Features
- Mainland Companies, Offshore Listing: Issued by Chinese firms but listed outside mainland China
- Traded in HKD: Settled and denominated in Hong Kong dollars
- Regulated by HKEX: Subject to Hong Kong’s legal and financial reporting standards
- More Transparent: Greater accessibility and oversight than domestic Chinese shares (A-shares)
- International Access: Available to foreign and institutional investors without restrictions
Common Use Cases
- Gaining exposure to Chinese companies through international markets
- Diversifying a global equity portfolio with emerging market holdings
- Comparing to A-shares (mainland-listed) and Red Chips (Chinese companies incorporated offshore)
Benefits or Advantages
- Easier access for global investors
- Typically higher liquidity than mainland-listed counterparts
- Priced through international trading hours and conditions
- Backed by Hong Kong’s legal and financial infrastructure
Examples or Notable Applications
Major Chinese companies like ICBC, PetroChina, and China Mobile have H-Share listings. Global investors often track the Hang Seng China Enterprises Index (HSCEI), which includes many H-Shares.
External Links
This post is for informational purposes only and does not constitute financial advice or investment recommendations.