Client Alert

Opening of A-Share Market in the Peoples Republic of China

December 01, 2002

China Practice Group

Until fairly recently, foreign investors in the People’s Republic of China have been allowed to trade only in the dollar-denominated BShare market, which makes up a fraction of the traded securities on the PRC’s Shanghai and Shenzhen stock exchanges. Prior to December 1, 2002, only PRC nationals were allowed to trade in the yuan-denominated A-Share market which is comprised of approximately 1,200 companies, which collectively have a market capitalization reported to be approximately US$500 billion.