Who can be B-share investors?
The permitted group of B-share investors used to include the following foreign natural persons, legal persons and other organizations, natural persons, legal persons and other organizations from Hong Kong, Macao and Taiwan and PRC nationals resident abroad. On February 19, 2001, the CSRC decided to open the B-share market to PRC domestic individual investors. On February 21, 2001, the CSRC and the State Foreign Exchange Administration Bureau jointly issued a Circular Concerning Several Issues of Investment by Domestic Residents in Foreign Investment Shares. According to the Circular, PRC individual investors can use the foreign exchange deposited at domestic commercial banks prior to February 19, 2001, after June 1, 2001, foreign exchange deposited at domestic commercial banks after February 19, 2001 can also be used to invest in B shares. The above investment by PRC individuals in B shares only relates to the secondary market. Under current PRC law, PRC domestic institutional investors or legal persons are not permitted to invest in B shares yet, whether on the primary market or on the secondary market.