What are H-Shares?
H-shares are shares of Chinese companies that are listed on the Hong Kong Stock Exchange.
How Do H-Shares Work?
Hong Kong is a "special administrative region" of China. It was a British colony from the 1830s to 1997. Despite China's status as a communist country, Hong Kong is a major center of global capitalism and is a large financial center.
H-shares are denominated in Hong Kong dollars and are included in the Hang Seng China Enterprise Index.
Why Do H-Shares Matter?
In 2007, China allowed mainland Chinese investors to buy H-shares. Previously, these investors were only allowed to buy Shanghai-listed A-shares of listed companies (many of which were the same companies as those issuing H-shares). Foreign investors can buy and trade H-shares, which makes them more liquid than A-shares. Accordingly, the spread between the A-shares and H-shares of the same company can be very high.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
