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.
This segment is a niche market today, as it only comprises 1% of China stock market. The currency quotation added substantial complexity in the valuation, especially when RMB exchange rate moves rapidly against other major currencies.
There are discussions to merge B Shares with A Shares to simplify China stock market structure, but no date is set for action yet.