H-share reform to boost Chinese ECM

摘要

China is to launch a pilot scheme for the full circulation of non-tradable shares of Hong Kong-listed Chinese companies, in a move to improve liquidity and financing channels. Under existing regulations, the share capital of mainland-incorporated entities listed in Hong Kong, aka H-share companies, is divided into H-shares and non-tradable domestic shares. The domestic shares are mainly in the hands of founders or major shareholders, usually accounting for more than a half of a company's total issued capital.