Abstract
A and B shares exist in the Chinese stock markets. A shareholders are domestic investors and B shareholders are foreign investors. During the early-and mid-1990s, B shares were traded at a discount relative to A shares, and B-share returns were higher than A-share returns. It is found that B-share market has persistent higher bid-ask spreads than the A-share market and traders in the B-share market bear higher informed trading and other transaction costs. In addition, the higher volatility of B-share returns can be attributed to the higher market making costs in the B-share market.
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© 2013 Springer Science+Business Media New York
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He, Y. (2013). Chinese A and B Shares. In: Lee, CF., Lee, A. (eds) Encyclopedia of Finance. Springer, Boston, MA. https://doi.org/10.1007/978-1-4614-5360-4_16
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DOI: https://doi.org/10.1007/978-1-4614-5360-4_16
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