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Business in Contemporary China

This page is a starting point for students researching Chinese businesses, brands, and companies.

Starting Out

China's Share Classes

  1. Class A shares: issued to and traded by Chinese investors, listed and traded on either the Shanghai Stock Exchange (SSE) or the Shenzhen Stock Exchange (SZSE).
  2. Class B shares: issued to and traded by foreign investors, including those from Taiwan and Hong Kong as well as qualified foreign institutional investors (QFIIs). The CSRC allowed Chinese citizens to invest in and trade B shares (with foreign currency accounts) in 2001. Also listed and traded on either the Shanghai Stock Exchange (SSE) or the Shenzhen Stock Exchange (SZSE).
  3. Class H shares: issued by companies registered in mainland China and approved by the CSRC to be listed in Hong Kong, are traded on the HKSE.
  4. Class N shares: firms listed in the United States but operating in China
  5. Class S shares: firms listed in Singapore but operating in China
  6. Class G shares: after the share reforms in 2005, government shares became tradable.

Adapted from Allen, Franklin, Jun “QJ Qian, and Xian Gu. "An Overview of China's Financial System." Annual Review of Financial Economics 9 (2017): 191-231.

China's Stock Exchanges

Two domestic stock markets established in 1990:

  • the Shanghai Stock Exchange (SSE)
  • the Shenzhen Stock Exchange (SZSE)

Hong Kong Stock Exchange came into existence in 1914.

Complementary markets:

  • Growth Enterprise Market (GEM; 创业板) started in 2009 to provide financing for private SMEs, especially high-tech and electronics firms
  • the Second-Tier Market (二板市场) started in 2004 for small and medium enterprises (SMEs), especially new start-ups in high-tech industries – similar to the NASDAQ
  • the Third-Tier Market (三板市场) started in 2001 to provide a share transferring platform for delisted firms and other over-the-counter (OTC) transactions
  • the New Third-Tier Market (新三板市场) started in 2006 to deal with the equity transactions of nonlisted shareholding companies in a high-tech zone (中关村) in Beijing
    • Expanded into the National Equities Exchange and Quotations (NEEQ; 股份有限公司) in 2012, a nationwide market in Beijing, Tianjin, Shanghai, and Wuhan.
    • Further enlarged in 2013, allowing all kinds of SMEs to perform equity transactions on this market

Adapted from Allen, Franklin, Jun “QJ Qian, and Xian Gu. "An Overview of China's Financial System." Annual Review of Financial Economics 9 (2017): 191-231.

Corporate Governance

Indexes

FTSE Russell offers a range of indexes that represent the breadth and depth of China’s evolving market.

Mutual Funds

Ownership

Real Estate