China Markets 101
How China's four major exchanges fit together, what the boards mean, and the routes global investors use. Written for people new to these markets.
Shanghai Stock Exchange
Home of large state-linked companies, banks, energy and consumer giants (Main Board, 60x codes), plus the tech-focused STAR Market (688) launched in 2019.
Shenzhen Stock Exchange
Leans toward private companies and growth sectors. It runs the Main Board (000–003) and ChiNext (300), the growth board where registration-based IPOs began in 2020.
Beijing Stock Exchange
Opened in 2021 for innovative small and medium-sized firms. It has a wider ±30% daily band, and new codes use the 920 prefix.
Hong Kong Exchanges
An international market that trades in HKD. It has no daily price limits and uses 5-digit codes. Many mainland companies list here as "H-shares" or "red chips".
| Rule | Mainland A-shares | Hong Kong |
|---|---|---|
| Settlement | T+1 for shares (you can't sell on the day you buy) | T+2 |
| Daily price limit | ±10% Main Board · ±20% STAR/ChiNext · ±30% BSE · ±5% ST | None (a volatility-control mechanism applies) |
| Board lot | 100 shares (STAR: 200-share minimum) | Varies by stock |
| Colour convention | Red = up, green = down | Green = up, red = down |
| Currency | CNY (B-shares: USD/HKD) | HKD (some RMB/USD counters) |
Simplified for education. Check the exchange's current rules before you trade.
Stock Connect
Northbound lets international investors buy eligible Shanghai and Shenzhen shares through Hong Kong. Southbound lets mainland investors buy eligible HK shares.
QFII / RQFII
A licensed channel that lets qualified foreign institutions invest directly in onshore securities.
ETFs & ADRs
The simplest route for most retail investors is a global ETF tracking the CSI 300 or MSCI China, or US-listed shares of Chinese companies.
| A股 A-share | Onshore yuan-denominated shares traded in Shanghai, Shenzhen or Beijing. |
| H股 H-share | Shares of a mainland-incorporated company listed in Hong Kong. |
| 红筹 Red chip | A company incorporated offshore with its main business in mainland China, listed in Hong Kong. |
| ST / *ST | "Special treatment": a warning label for financially troubled companies, with a narrower ±5% limit. |
| 涨停 / 跌停 | Limit-up / limit-down: the price has hit the day's maximum rise or fall. |
| 北向资金 | Northbound money: foreign flows into A-shares through Stock Connect. |
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