Chinese open to buy H shares

Reading Time: < 1 minute

Last few days is full of events for China capital market, and the new generation of the Chinese investors (capitalist?). Last weekend the captialweek, a well known magazine for investors, celebrated its 15 years anniversary and the 18 years of China capital market. The following picture is the cover of latest “capitalweek” magazine published last Saturday.


Yesterday, the Chinese goverment opens the gate of H-shares to ordinary Chinese citizen. In other words, from now on Chinese citizen can buy the stocks traded in Hongkong. There is some limitations at this initial stage (people in Tianjin felt a bit lucky), as right now only the Bank of China, Tianjin Binghai branch takes your money, and BoC international (the brokage arm of BoC) take your order (Petro China? China Mobile?).

Nonetheless, it’s a big step. Some people in Hongkong already worried about the potential increased volatility of H shares. Some people think the gap between A and H shares will narrow. If everything goes smoothly, we can expect more investment choices for Chinese in the near future. Maybe they can not only eat McDonald or KFC, they can buy the stocks as well 🙂

By the way, here is a work flow on how a Chinese individual investor buy the Hongkong stocks (from EastMoney, in Chinese).


  1. i expect H shares will be traded high because of the changes. do you know there is (are) EFT(s) tracking H shares?

  2. Sean,

    I found this one traded in Hongkong.

    The iShares FTSE/Xinhua A50 China Tracker (“A50 China Tracker”) is an exchange traded fund (ETF) that invests in the top 50 listed companies listed on the Shanghai and Shenzhen stock exchanges. The A50 China Tracker is listed on the Stock Exchange of Hong Kong and is denominated in HK dollars. The fund seeks results that generally correspond to the FTSE/Xinhua China A50 Index. Refer to the prospectus for risks related to tracking error.

    There are also some A shares ETF, traded in Shanghai Securities (Stock) Exchange. I’m not going to elaborate.

Leave a Reply to stlplace Cancel reply

Your email address will not be published. Required fields are marked *