Beginner's Introduction To Fish: Classification Of Stock In China

Because China's stock market is experiencing a process of first development and post regulation, the popular classification of China's stock market is different from that of foreign countries. In the stock market of listed companies, it can be divided into two categories: circulating shares and non circulating stocks.

One Negotiable shares The stock of negotiable shares refers to the stocks circulated on the Shanghai stock exchange, the Shenzhen stock exchange and the two legal person shares in Beijing, STAQ and NET. Since the China Securities Regulatory Commission was established in October 1992, the stock market before that was approved by the securities trading system itself. After that, the listing and circulation of all stocks were unified and managed by the China Securities Regulatory Commission.

In negotiable stocks, they can be divided into A shares, B shares, corporate shares and overseas listed stocks according to their market attributes.

A share stock is a stock that has been or is allowed to circulate on the Shanghai stock exchange and Shenzhen stock exchange and is denominated in Renminbi. This kind of stock can only be purchased by residents or legal persons in accordance with the regulations. Therefore, the stock commonly used by our stock holders generally refers to A shares. In this kind of stock, it is divided into two categories, namely, the public stock and the internal stock of the employees. Among them, the social public shares are publicly recruited and issued by the Limited by Share Ltd, while the internal staff shares are strictly purchased by the staff of Limited by Share Ltd according to the relevant regulations, and their purchase methods, prices and circulation conditions are different from those of the public stock.

B share stock is a stock with RMB as the stock face value, foreign currency as the subscription and trading currency. It is a share formed by foreign investors investing in China's Limited by Share Ltd, and is listed on the two stock exchanges in Shanghai and Shenzhen.

Legal person shares are the two STAQ and NET in Beijing. Stock Exchange Listed stocks listed in the system. It is called legal person shares because the shares circulated in these two systems can only be bought and traded by legal persons, while natural persons can not buy and sell stocks in these two systems.

Overseas listed stocks refer to the stock issued and listed by Limited by Share Ltd in China. At present, there are mainly H-shares circulated on the Hongkong stock exchange, as well as N shares that are exhausted in the US securities trading system.

2. non tradable shares in listed companies, non tradable shares mainly refer to the state shares and corporate shares that can not be listed for the time being. The state shares are the shares converted from state-owned assets when the shareholding companies are restructured. Part of the legal person shares are the shares subscribed by the sponsors of the company at the beginning of the stock company, and the other part is specially raised to other legal entities when the Limited by Share Ltd publicly raises the shares to the public. The reason why the stock is not listed is that the representatives of the state stock have not yet been determined, and the transfer of shares is difficult to operate. Secondly, when the issue of shares is made, part of the legal person shares are raised and the conditions of the public stock are different. Thirdly, the proportion of state shares and corporate shares in the total share capital of listed companies is as high as 2/3, and its listing and circulation will have a greater impact on the two tier market. With the deepening of China's shareholding system reform and the maturity and development of stock market, this part of stock will inevitably enter the two level circulation market of Shanghai and Shenzhen stock markets.

A shares and B shares are listed on the mainland of China.

Overseas listed stocks refer to the stock issued and listed by Limited by Share Ltd in China. Hongkong Stock Exchange H shares in circulation,

There are also N shares listed on the US stock exchange system (including NEW YORK exchange and NASDAQ listing).