Chinese Share Descriptions

A-Shares

Securities of Chinese incorporated companies that trade on the Shanghai or Shenzhen stock exchanges, quoted in Chinese Renminbi (RMB). Traded by residents of the People’s Republic of China (PRC) or international investors under the China Qualified Foreign Institutional Investors (QFII) regulations.

B-Shares

Securities of Chinese incorporated companies that trade on the Shanghai Stock Exchange (quoted in US Dollars) or the Shenzhen Stock Exchange (quoted in Hong Kong Dollars – HKD). Traded by both non-residents of the PRC and residents with appropriate foreign currency dealing accounts.

H-Shares

Securities of companies incorporated in the People’s Republic of China and listed on the Hong Kong stock exchange. They can only be traded by Chinese investors under the Qualified Domestic Institutional Investors scheme (QDII). There are no restrictions for international investors.

Red Chip Shares

Red chip companies are incorporated outside of the People’s Republic of China that trade on the Stock Exchange of Hong Kong. A Red Chip is a company that is substantially owned directly or indirectly by Mainland China entities, and has the majority of their sales revenue or operating assets derived from Mainland China.