Chinese A and B Shares

Yan He ()
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Yan He: Indiana University Southeast

Chapter 16 in Encyclopedia of Finance, 2022, pp 713-717 from Springer

Abstract: Abstract A and B shares exist in the Chinese stock markets. A shareholders are domestic investors and B shareholders are foreign investors. During the early-and mid-1990s, B shares were traded at a discount relative to A shares, and B-share returns were higher than A-share returns. It is found that B-share market has persistent higher bid-ask spreads than the A-share market and traders in the B-share market bear higher informed trading and other transaction costs. In addition, the higher volatility of B-share returns can be attributed to the higher market making costs in the B-share market.

Keywords: Asymmetric information; Bid-ask spread; Chinese A shares; Chinese B shares; Return; Shanghai stock exchange; Shenzhen stock exchange; Stock; Stock ownership; Transaction costs; Volatility (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/978-3-030-91231-4_16

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