Zhejiang to convert B shares to A
AChinese company is preparing to migrate its dollar- denominated B shares to the mainstream A- share board, two sources at banks advising on the deal told Reuters, signifying the beginning of a migration that could see individual foreign investors owning yuan- denominated shares in Chinese equities for the first time.
A source at China International Capital Corporation and another source at Morgan Stanley’s Chinese joint venture, Morgan Stanley Hua Xin, said that Zhejiang Southeast Electric Power Co is planning to convert its B shares trading in Shanghai into A shares. A shares are only open to mainland investors and on a highly restricted basis to qualified foreign institutions such as banks or funds, which must apply for investment quotas. A source from Zhejiang Southeast Electric Power declined to confirm the move.