H-Shares

H-shares are shares of Chinese companies that are traded on the Hong Kong Stock Exchange. They are denominated in Hong Kong dollars and are subject to Hong Kong's securities laws. H-shares are often seen as a more liquid and transparent investment than A-shares, which are shares of Chinese companies that are traded on the Shanghai Stock Exchange.

H-shares were first issued in 1993 as a way for Chinese companies to raise capital from international investors. The program was successful, and by 2007, there were over 1,000 H-share companies listed on the Hong Kong Stock Exchange. However, the global financial crisis of 2008 led to a decline in the value of H-shares, and many companies were delisted from the Hong Kong Stock Exchange.

In recent years, the Chinese government has taken steps to make it easier for Chinese companies to list on foreign stock exchanges. In 2014, the Shanghai-Hong Kong Stock Connect program was launched, which allows investors in Hong Kong and Shanghai to trade shares in each other's markets. This program has helped to increase the liquidity of H-shares and has made them more accessible to international investors.

H-shares are a popular investment for international investors who are looking for exposure to the Chinese economy. They offer a number of advantages over A-shares, including greater liquidity, transparency, and access to international investors. However, H-shares also carry some risks, such as the potential for political instability and currency fluctuations.

Overall, H-shares can be a good investment for international investors who are looking for long-term growth. However, it is important to do your research before investing in any H-share company.