China-B Share Stock Market

Major Stock Exchange Introduction

B-share is a RMB special type of shares, of which foreign companies can be listed on domestic market, with the permission from China Securities Regulatory Commission (the CSRC). B-share markets are established in February 1992. The two exchanges, Shanghai and Shenzhen stock Exchange has its own B shares issued by listed companies to trade. For the first 10 years, the Chinese government permits overseas investors to hold B share only. The overall development is unsatisfactory as the number of investors is small, compared to A-share market. Since February 19, 2001, China Securities Regulatory Commission allows domestic residents to own B-share accounts opened by foreign currency. This attracts more foreign investment and significantly alters the development of B share market afterwards.

The characteristic of market operation:

  • Dematerialized
  • Auto-match system
  • Prohibition for margin and SBL
  • Volatility restriction on trading priced stock
  • Circuit breaker system

Shenzhen Stock Exchange (SZSE)

Shenzhen Stock Exchange (SZSE),established on 1st December 1990. Its main functions include providing venue and facility for securities trading, formulating operational rules, arranging securities listing, organizing and supervising securities trading, offering membership supervision and oversight of listed companies, managing and publicizing market information and other capacities permitted by CSRC.

SZSE launched the SME Board in May 2004. The ChiNext Market was inaugurated in October 2009. And the OTC market began its pilot program in Zhongguancun Science Park in January 2006. Thus SZSE has basically completed its framework for the multi-tier capital market system with coordinated development in the main board, SME board and ChiNext market.

By 30 June 2010, SZSE was home to 1,012 listed companies, with 485 on the main board, 437 on the SME board and 90 on the ChiNext market. The total market capitalization was valued at 5.6 trillion yuan (US$828.7 billion). A total of 69 companies in Zhongguancun Science Park were quoted on the OTC market. In the first half of 2010, SZSE raised 154.3 billion yuan (US$22.7 billion) in IPO proceeds and recorded a total trading value of 9.73 trillion yuan (US$1.43 trillion).

The Shanghai Stock Exchange (SSE)

The Shanghai Stock Exchange (SSE) was founded on 26th Nov 1990 and in operation on 19th Dec the same year. It is a membership institution directly governed by the China Securities Regulatory Commission (CSRC). The SSE endeavors to realize a variety of functions: providing marketplace and facilities for the securities trading; formulating business rules; accepting and arranging listings; organizing and monitoring securities trading; regulating members and listed companies; managing and disseminating market information.

The TSX deals mostly with well-established equities, while the TSX Venture Exchange is a public venture capital marketplace for emerging companies that have not yet met the requirements for listing on the TSX.

After several years' operation, the SSE has become the most preeminent stock market in Mainland China in terms of number of listed companies, number of shares listed, total market value, tradable market value, securities turnover in value, stock turnover in value and the T-bond turnover in value. As at the end of 2009, SSE boasted 1,351 listed securities and 870 listed companies, with a combined market capitalization of RMB 18,465.523 billion and a total of 89.6543 million trading accounts. In 2009, listed companies raised RMB 334.315 billion on SSE through IPO and new share placement.

Major Index Introduction

Shanghai Stock Exchange Composite Index

Shanghai constituent index (SSE 180 index)

Shanghai constituent index (SSE 180 index), is created by restructuring and renaming SSE30 Index. It selects constituents with best representation through scientific and objective method. SSE is a benchmark index reflecting Shanghai market and serving as a performance benchmark for investment and a basis for financial innovation.

SSE A-Share Index

Constituents for SSE A-Share Index are all listed A- shares at Shanghai Stock Exchange. The Base Day for SSE A Share Index is December 19, 1990. The Base Period is the total market capitalization of all A shares of that day. The Base Value is 100. The code is 000002.

SSE B-Share Index

Constituents for SSE B-Share Index are all listed B-shares at Shanghai Stock Exchange. The Base Day for SSE B Share Index is February 21, 1992. The Base Period is the total market capitalization of all B shares of that day. The Base Value is 100. The code is 000003.

Shenzhen Exchange Composite Index

SSE A-Share Index

Constituents for SSE A-Share Index are all listed A-shares at Shenzhen Stock Exchange. The Base Day for SSE A Share Index is April 3, 1991. The Base Period is the total market capitalization of all A shares of that day. The Base Value is 100. The code is 399107.

SSE B-Share Index

Constituents for SSE B-Share Index are all listed B-shares at Shenzhen Stock Exchange. The Base Day for SSE B Share Index is February 28, 1992. The Base Period is the total market capitalization of all B shares of that day. The Base Value is 100. The code is 399108.

SSE Component Index

Constituents for SSE Component Index are selected of 40 companies listed at Shenzhen Exchange. The Base Day for SSE Component Index is July 20, 1992. The Base Period is the total market capitalization of 40 selected companies of that day. The Base Value is 1000. The code is 399001.

Shanghai and Shenzhen 300 index

Jointly developed by the Shanghai Stock Exchange and Shenzhen stock exchange to reflect the overall trend of the Chinese A-Share Market.

The sample of index covers 70% of the market capitalization of the Shanghai and Shenzhen markets.

December 31, 2004 as the base date, day base point is 1000 points, the index code is Shanghai Stock Exchange 000300 and Shenzhen stock exchange 399300.

Account Opening Procedures

Please click here for account open details.

Trading Information

CountryTrading Session(HongKong)Trade CurrencySettlement Currency & DurationEarliest HK time to accept orders for next trade day
*** Only limited services of pre-open, pre-close & after-close auction sessions are provided
CHINA
Shanghai-B Share
Monday ~ Friday
Morning Session
09:30 - 11:30
Afternoon Session (to be commenced on 20 Aug 2018)
13:00 - 14:57
Pre-close Auction Session*** (to be commenced on 20 Aug 2018)
14:57 - 15:00
USD HKD
USD
T + 3
Monday ~ Friday
at 18:00
after previous market close
CHINA
Shenzhen-B Share
Monday ~ Friday
Morning Session
09:30 - 11:30
Afternoon Session
13:00 - 14:57
Pre-close Auction Session***
14:57 - 15:00
HKD HKD
USD
T + 3
Monday ~ Friday
at 18:00
after previous market close

Commission

Please click here for commission details.

China Stock Coding Rule

Shenzhen stock exchange Coding RuleShanghai Stock Exchange Coding Rule
China B Share 2XXXXX 9XXXXXX
China A Share 0XXXXX 6XXXXXX

Securities code includes 6 figures. When trading on the Shenzhen B share, .SZ should be added after the code. When trading on Shanghai B share, .SS should be added after the code. Alphabet such as [PT] or [ST] may appear in front of some shares’ name. Those shares belong to high-risk shares.

Particular transfer [PT] facilitates the transfer of suspended listed shares. Special treatment [ST] shows the performance of listed companies that have deficit for two consecutive years or share per assets less than the par value.

Trading Unit

100 shares per lot for buying Shenzhen B share, 1 shares per lot for selling.

100 shares per lot for buying Shanghai B share, 1 shares per lot for selling.

Less than 1 lot is regarded as Odd lot.

Trading Halt China B Share

The price of securities shall not be changed over 10% on each day relative to the closing price of previous trading day.

The stock with [PT] quotation means the price of stock shall not be increased over 5% on each day, but there is no limit for decrease.

The stock with [ST] quotation means the price of stocks shall not be increased or decreased for 5% on each day.

Important items prior to trading:

  • Margin Financing on trading China B share is not accepted
  • Shenzhen and Shanghai Stock Exchanges implement T+1 rotation trading system, Buy and Sell a China B stock on the same day is not allowed.
  • Short Selling is not permitted in China B Market.
  • Trading service of China A-Shares is not provided by our company.
  • POEMS trading platform does not provide price quotation service.

Depository Information

Please click here for depository steps and related depository bank account information.

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