H shares (Chinese: H股; also known as 恒生中國企業指數, Hang Seng China Enterprises Index) refers to the shares of companies incorporated in mainland China that are traded on the Hong Kong Stock Exchange. Many companies float their shares simultaneously on the Hong Kong market and one of the two mainland Chinese stock exchanges.
Huge price discrepancies between the H shares and the A share counterparts of the same company are not uncommon. A share generally trades at a premium to H shares as the People's Republic of China government restricts mainland Chinese people from investing abroad, and foreigners from investing in the A-share markets in mainland China.
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