A Study On The Current Status And Prospect Of H Shares In Hong Kong

H shares have been started to trade in the main board of Hong Kong stock exchange since 1993 and up to 2005, there had been totally 80 China enterprises in the form of H shares being listed in the main board of Hong Kong stock market. Most of them were the best and the market leaders in the industries and they more or less reflected the overall China economic development level and potential growth. In the past ten plus years, H shares had undergone various development phrases which they experienced H shares market emerging, enterprises problems being revealed, handover of Hong Kong sovereignty in year 1997, Asian financial crisis, economic recovery at balanced growth, accelerated market and finally steady growth.So far the development of H shares was quite good. The fund raised and transaction volume of H shares had become 17 times to HK$ 137.4 billion and 29 times to HK$953.3 billion respectively for the year of 1993 and 2005. The total market value of H shares had grown by 71 times up to HK$ 128.69 billion as a comparison for the same corresponding years' end. The asset value of new listing H enterprises had increased from HK$1 billion to more than HK$10 billion. Over-subscriptions of new listing H shares usually ranged from 10 times to several hundreds. All of these truly accounted for the value and popularity of H shares in Hong Kong.The thesis reviewed the development and meaning of H shares. It showed and analyzed the current status of H shares and its index. Moreover, it commented the H shares investment value and the situation of their associated industries. It further discussed those existing problems of H enterprises including the corporate governance, information disclosure requirement, Split Share Structure Reform of Listed Companies and the deviation of H and A shares market prices etc. Hence, it was expected to forecast the development and prospect of H shares.The result of the thesis showed that: most of H enterprises focused on their future development of their industries. Their profit making capacities and management skills continued to improve progressively. As the transaction volume of H shares had been increasing, the position of Hong Kong being the preceding fund raising center for Chinese enterprises had also becoming more and more important. Under the relaxing of the restrictive China foreign exchange controls policy, the investment value of H shares will continuously undergo being found by more investors within the next few...