上海证券交易所成立于1990年,是一个地标导致当前中国市场的发展状态。由于这种积极的转型市场直接融资增加,这导致增加IPO融资。由于股票市场开始发展。主要有三种类型的股票称为,B、H和N(Chan Fung & Thap,2007)。
China economy has been going through institutional transformation. In this transformation economy of China has been seen moving from an economy which was centrally planned to the market economy. Importance is being given to establishing a proper and appropriate system for property rights and financial system which is stable. Stability in the financial system has been given more importance in the recent years. State reformed enterprises have been undergoing reform. This had a very positive impact on the transformation of the economy of China.
Shanghai stock exchange was formed in the year 1990 and was one of the landmarks which led to the current developed state of the Chinese market. Due to this positive transformation the market for the direct financing increased and this led to increase in the IPO financing. As a result the stock market began to develop. There are mainly three type of shares which are known as A, B, H and N (Chan, Fung & Thap, 2007).
Shares which are in the A category are held by the domestic investors. B category shares are for investors who are not domestic i.e. foreign investors. Some of the domestic firms which have been authorized also can buy the B category shares. From the year 2001 the B category shares were made available to the domestic investors too. Shares in the H category belong to the companies which are listed on the Hong Kong exchange. N category shares are ones listed on the New York exchange (Ge, Drury, Fortin, Liu & Tsang, 2010).