B-share market

China's securities reforms put spotlight on B-share dilemma

The B-share market is increasingly unsustainable, but regulators have few good ideas about what to do with it.
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Will China send some of its unloved B-shares to Hong Kong?
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<div style="text-align: left;"> Will China send some of its unloved B-shares to Hong Kong? </div>

There’s nothing like a thorough spring clean to bring things into the open. The only problem, of course, is that you then have to deal with all the long-forgotten junk that turns up.

Guo Shuqing, China’s chief securities regulator, would probably sympathise. The delisting rules his office introduced recently, as part of a zealous reform package, have shed light on a dusty old corner of the country’s securities industry the B-share market.

Guo introduced the new rules in a bid to clear out some of the weaker A-share companies, but a requirement for loss-making or illiquid companies to delist is expected to have even bigger consequences for...

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