China's top securities watchdog Friday announced to fully promote its "full circulation" reform of the H-shares.
Qualified H-share companies and companies planning initial public offerings on the H-share market may apply for "full circulation" of certain types of shares in accordance with the law, the China Securities Regulatory Commission (CSRC) said in an online statement¡£
Full circulation indicates that the domestic unlisted shares of the relevant companies can be converted into H-shares for listing and circulation on the Hong Kong Exchanges and Clearing Limited (HKEX).
The shares include domestic-funded shares held by domestic shareholders prior to overseas listing, domestic-funded shares issued in the Chinese mainland after overseas listing and unlisted shares in circulation held by foreign shareholders, the CSRC said.
Regulated by Chinese law, H-shares are shares of enterprises incorporated in the Chinese mainland that are listed on the HKEX.
China completed its H-share full circulation trial last year, with stable operation reported in both mainland and Hong Kong markets, said CSRC spokesperson.