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a shares - investing in stocks in china requires knowing a and b shares



a shares are different from the b types There are two types of shares that are used these days for people that want to invest in China. There are A and B type shares both of which are a class of shares for parts of China including the Shanghai and Shezen stock exchanges where trading takes place. The b shares are used for foreigners who want to invest using their own currency such as the U.S. dollar, the Euro, etc… The a type are for people who were born in China and have the right to buy them unlike foreigners. There are a certain amount of shares for many of the companies on these exchanges that are set aside specifically as b shares for the purpose of foreign investors. Eventually it is rumored that the two shares will become basically equal and always for a more globalist economy where many countries will have certain standards of reporting etc. but the shares will all be the same and the people who want to invest in other countries can do so easily without worrying about a shares and the problems of today.



I believe that the ability to invest in other countries is worth your time and study especially China which has the a shares and b shares policy. The problems with the U.S. economy are bad and therefore being able to invest in other countries when things go sour in one will be a power worth having. The advantages of the Chinese economy is great over that of the U.S. however that may not remain permanent but what will remain permanent is the fact that some countries will always be doing better than others. The current advantages of China over the U.S. are:

  • The have very little debt compared to the U.S.
  • They own a lot of Treasury notes for the U.S.
  • They are just starting to turn capitalistic and grow
  • The are a major WORLD manufacturer of products