A Shares

RECENT NEWS
Reuters  Jun 10  Comment 
Equity index provider MSCI on Tuesday said it will not add China's mainland-based A shares to its benchmark emerging markets index but that the shares will remain on review for a...
The Economic Times  Jun 5  Comment 
"We're really gearing up for the A-shares market opening up," said Mark Makepeace, chief executive officer of FTSE Group, in an interview.
The Economic Times  Mar 24  Comment 
MSCI is considering partial inclusion of A shares into its EM index so that the index better reflects the importance of China's equities markets.
Benzinga  Mar 12  Comment 
Fortress Announces Launch of Public Offering of Class A Shares Business Wire - Mar 12 16:07 EDT Alert hits:BWU Company Symbols: NYSE:FIG NEW YORK--(BUSINESS WIRE)-- Fortress Investment Group (NYSE: FIG) (“Fortress” or the...
Financial Times  Mar 12  Comment 
MSCI launches a consultation on the inclusion of A-shares in its flagship emerging markets index from May 2015, much earlier than analysts expected
DailyFinance  Dec 20  Comment 
TORONTO, ONTARIO -- (Marketwired) -- 12/20/13 -- Fairfax Financial Holdings Limited ("Fairfax") (TSX: FFH)(TSX: FFH.U) announced today that it has acquired, through its subsidiaries, 2,000,000 Class A non-voting shares ("Class A Shares"),...
Forbes  Aug 2  Comment 
In trading on Friday, shares of AmeriServ Financial Inc.'s 8.45% Beneficial Unsecured Securities, Series A (NASD: ASRVP) were yielding above the 8% mark based on its quarterly dividend (annualized to $2.1125), with shares changing hands as low as...
StreetInsider.com  Feb 28  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Equity+Offerings/Pzena+Investment+Management+%28PZN%29+Files+to+Offer+Up+to+530K+Class+A+Shares/8144901.html for the full story.




 

In finance and investing, "A-Shares" can refer to different classes of shares in a publicly traded company or mutual fund (in which each class has different rights), or A-shares can refer to shares of Chinese companies traded on the Shanghai stock exchange.

Classes of Stock

Companies often issue multiple classes of stock, typically referred to as 'A-Shares' and 'B-Shares'. This may occur for a number of reasons.

A company may want to concentrate voting rights among a small percentage of owners. In this case, A-shares may represent only 10% ownership of the company but 90% of the voting rights (an example of this type of structure is CMG).

Alternately, a company may wish to list shares on different Stock Exchanges. In this case, the A-shares may trade on, for example, the New York Stock Exchange, while the B-shares trade on the Hong Kong Stock Exchange.

Another infamous example is BRK, whose A-shares got so expensive that a secondary market was created to track the A-shares. In response, B-shares were created to represent 1/30th of an A-share ownership stake.

Each company's structure for different classes of stock may contain unique clauses, rules, and justification.

Mutual Funds

Mutual funds will often offer several classes of shares. Each class represents an ownership stake in same pool of underlying securities of the mutual fund. The purpose of multiple share classes is to provide different fee structures to attract different types of investors. For instance, one class of stock may have front-loaded fees whereas another may charge fees on an accrual basis. See also: Mutual Fund Fees

Chinese stock market

A-Shares are shares in Chinese incorporated companies that trade on the Shanghai or Shenzhen stock exchanges, quoted in Chinese Renminbi (RMB). Shares are traded by residents of the People’s Republic of China (PRC). International investors can trade A Shares only under the China Qualified Foreign Institutional Investors (QFII) regulations.

See Also

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