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China may merge A-share, B-share markets
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China's increasingly marginalized B-share markets, where share prices
are denominated in US dollars
and which are available to overseas investors, are set to be merged into
the country's A-share market, experts said.
The B-share markets, originally designed for overseas investors but
opened to domestic investors since 2001, have been increasingly
marginalized as many overseas investors fled them after domestic investors
entered the market.
The A-share markets on Shanghai and Shenzhen stock exchanges are open
to domestic investors and qualified foreign institutional investors.
Share indices for the B-share markets dropped by about 70 percent
during the past four years, according to the latest edition of the
Economic Information Daily.
The B-share markets were originally designed as provisional ones before
the country's A-share markets are to open to overseas investors.
Share prices have been on the rise over the past week as China made
public regulations that allow overseas strategic investors to buy shares
on the A-share markets.
The publication of the regulations triggered interest of investors for
profit-taking in the undervalued B-share markets as share prices jumped by
more than 10 percent over the past week.
Zhang Zhimin, an analyst with the China Securities Investment
Consultancy Co., said there are no more justified reasons for the B-share
markets to remain as overseas strategic investors are allowed to invest in
the Chinese A-share markets.
Experts say the merger may take place after China completes its ongoing
share reform later this year, which allows the State shares barred from
public trading to be floated on the A-share markets.
(Xinhua) | 
Updated: 2006-01-16 10:07
