Definition of A-Share

What is an A-Share

An A-share is the stock share class for publicly-listed Chinese companies that are listed on Chinese stock exchanges, such as the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE). Chinese A-shares are specific to companies that are incorporated and based in mainland China. Additionally, A-shares trade in yuan renminbi.

While foreign investment is restricted, A-shares are allowed for foreign investment under the Qualified Foreign Institutional Investor (QFII) program.

Glossary of Terms and Phrases

A financial dictionary or glossary is an essential tool to better understand the meaning of a specialized term or phrase. It would obviously make life much easier if everyone spoke the same language and used the same financial terms and phrases but that is not realistic.

We learn new languages to communicate with each other, transact business globally and to appreciate other cultures. Global finance is a specialized language that if understood and mastered, it will provide benefits that help to decrease risk and improve investment returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.

Related Investment Terms

American Depositary Receipt

Euro

H-Share (China)