What is A-share? What's the difference between A shares and B shares?

Differences between A shares and B shares in Shanghai Stock Exchange;

1, different types of stocks issued by listed companies:

A shares are RMB paid-in shares issued by listed companies; B shares are stocks issued by listed companies, and are paid in US dollars (stocks traded on Shanghai Stock Exchange, referred to as Shanghai Stock Exchange) or Hong Kong dollars (stocks traded on Shenzhen Stock Exchange, referred to as Shenzhen Stock Exchange);

2. Different trading markets:

The A-share trading markets are Shanghai Stock Exchange and Shenzhen Stock Exchange; B shares traded in US dollars are only traded on the Shanghai Stock Exchange, while B shares traded in Hong Kong dollars are only traded on the Shenzhen Stock Exchange.

3. Different investors or counterparties:

1)a shares are stocks that domestic individuals and enterprises can invest and trade. In addition, some foreign investors/individuals and institutions can conduct A-share transactions through QFII (Qualified Foreign Institutional Investors), and the amount of foreign exchange used in their transactions is limited. In a certain period of time, foreign exchange converted into RMB can only be converted into foreign exchange in a certain proportion;

2)b-share investment/transaction can be of two types: first, it can be domestic individuals or institutions holding foreign exchange cash or cash, and the foreign exchange/foreign currency invested by them cannot be remitted abroad (without special approval from the state administrative department);

Second, it can be overseas individuals and institutions, and it can also be individuals and institutions with overseas foreign exchange in China. The foreign exchange of such individuals/institutions can be remitted abroad freely, with no limit;

4. Different transaction costs:

The related expenses of A-share trading include trading commission, stamp duty and trading special fund. B shares also include the above items, but the rates are different. For example, in terms of trading commission, domestic A shares are generally charged 0 by securities companies.

2-0。 3% trading commission, while B shares will pay about 1% trading commission;

5. The calculation method of receiving stock dividends is different from the payment currency:

The general dividend of A shares will be calculated according to domestic accounting standards and paid in RMB. On the other hand, B shares generally calculate the company's profit level according to international accounting standards, and are converted into foreign exchange (US dollars or Hong Kong dollars) at a certain exchange rate to be paid to shareholders/investors who hold shares in a certain period of time.

References:

Baidu Encyclopedia-Shanghai A-share Index

Baidu Encyclopedia-Shanghai B-share Index