bshare-market-reaches-new-heights

B-share market reaches new heights

Surging B-share stocks blindside foreign investors as locals take a punt on the likely merger of the A-share and B-share markets.
The death of the B-share market has been declared many times over, but somehow this dollar-denominated asset class continues to survive - and even thrive.

On Wednesday the Shanghai B-share index, set up in 1999 for foreign investors with a base value of 100, reached 332 points compared to a low of 186.229 points in 2003. The index has put on over 140 points since the beginning of this year.

ôItÆs the old story, says one fund manager in Shanghai. Investors holding B-shares are banking on that share class being merged with A-shares. Given the traditional discount B-shares have traded at compared to A-shares, the hope is that a merger will result in valuations meeting...
¬ Haymarket Media Limited. All rights reserved.

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