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H shares (Chinese:H股) refer to the shares of companies incorporated inmainland China that are traded on theHong Kong Stock Exchange. Many companies float their shares simultaneously on the Hong Kong market and one of the two mainland Chinesestock exchanges in Shanghai or Shenzhen, they are known as A+H companies.
H shares are also held by anominee service company "HKSCC Nominees Limited" (HKSCC forHong Kong Securities Clearing Company), which was owned byHong Kong Exchanges and Clearing.
Price discrepancies between the H shares and theA share counterparts of the same company are not uncommon.[1] A shares generally trade at a premium to H shares as thePeople's Republic of China government restricts mainland Chinese people from investing abroad and foreigners from investing in the A-share markets in mainland China.
Tsingtao Brewery was the first enterprise to offer H-shares when it became the first Chinese firm listed on the Hong Kong Stock Exchange in June 1993.[2]: 48
The index for H shares was calledHang Seng China Enterprises Index. (Chinese:恒生中國企業指數).
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