At present, three are only there choices for the future outlet of B-share market agreed by both the securities industry and academia: repurchase, combination of A-share & B-share and development. The following are the analysis for the three choices separately. 

 

1. Repurchase plan

There are two methods for repurchase: repurchase by state and increasing A-share to repurchase B-share by the listed company brought forward by GF SECURITIES.

2. Combination plan of A-share & B-share

Combination plan can be divided into two methods: passive combination and active combination.

 

3. Development plan

The concrete development plan is to develop together with A-share market with the permit of IPO and refinancing of B-share and no limit for domestic institutions to invest in B-share, which makes B-share market become an important foreign exchange investment channel for domestic residents and institutions, instead of passive waiting and active combination before convertibility of RMB. However, combine A-share market and B-share market together naturally after convertibility of RMB. Although both this plan and passive combination plan reach the same goal by different routes, this plan need not to wait passively and can service for the policy “Store Foreign Exchange among the People” brought forward by the state aiming at rapid increase of present foreign exchange reserve at the same time.

 

4. The key of current B-share market is to make sure the expectation

We analyze three plans in the above text, which are repurchase, combination and development. Except the infeasible repurchase plan, combination and development plans have their advantages and disadvantages, therefore, it’s difficult to make a choice; however, it’s not the reason for delaying and accomplishing nothing. As we all know, clear expectation is the foundation in securities market.