“A” Shares – Chinese stocks listed on the Shanghai and Shenzhen stock exchanges denominated in RMB.
“B” Shares – Chinese stocks listed on the Shanghai and Shenzhen stock exchanges denominated in foreign currencies. In Shanghai, “B” Shares are traded in US dollars and in Shenzhen, “B” Shares are traded in HK dollars.
Board Lot – In China, on the SSE and SZSE, stocks, warrants or mutual funds trade in 100 unit (lot) increments. In Hong Kong, every stock has its own board lot unit. HSBC for example trades in 400 unit multiples.
CBBC – Callable Bull Bear Contract – A derivative instrument with a strike price, expiry and knock-out (barrier) price, where it stops trading and is called by the issuer. These have become increasingly popular trading instruments in Hong Kong due to their very low prices and leverage.
CBRC – China Banking Regulatory Commission (中国银行业监督管理委员会) – China’s independent banking regulator, established in 2003.
CIC – China Investment Corporation – China’s sovereign wealth fund responsible for managing China’s vast ($2.5 trillion) currency reserves. At the end of 2009, CIC had $336 billion under management. Not to be confused with CICC.
CICC – China International Capital Corporation – China’s first joint venture investment bank established in 1995. Morgan Stanley, the U.S. investment bank, is a 34.3% shareholder.
CSRC – China Securities Regulatory Commission (中国证券监督管理委员会) – China’s overall authority for the Securities industry.
H-Shares – Shares of China companies that are listed on foreign exchanges, including the Hong Kong Stock Exchange.
HSCEI – Hang Seng China Enterprises Index – A market cap weighted index of H-shares listed on the Hong Kong Stock Exchange.
Mini-QFII – A scheme whereby Chinese brokerages and fund management companies may tap a reported initial $20 billion in Yuan denominated assets held offshore to invest in China’s domestic bond and stock markets. Details are expected to be released late in 2010. See QFII.
QDII – Qualified Domestic Institutional Investor – An institutional fund allowing Chinese citizens opportunity to invest in foreign stocks and bonds. As of the end of the 1st quarter 2010, China had approved 76 QDII funds to invest overseas.
QFII – Qualified Foreign Institutional Investor – A scheme launched in 2002 allowing foreign investors to buy and sell yuan denominated “A” shares on the China stock exchanges in Shanghai and Shenzhen. At the end of 1Q 2010, there were 88 QFII approved by the Chinese government.
RQFII – Renminbi Qualified Institutional Investor – A scheme launched in 2011 allowing foreign investors to invest in funds initially offered by 21 firms with a quota of 20 billion RMB. RQFII funds must invest primarily in renminbi bonds and bond funds issued in mainland China and comprise at least 80% of the fund’s assets. The remaining 20% or less may be invested in A-shares and other equity instruments allowed under RQFII regulations.
SAFE – State Administration of Foreign Exchange (国家外汇管理局)- China’s administration agency governing foreign exchange activites.
