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They have checked with the company. It is confirmed that A chips and S chips are the same class of stocks with exactly same rights.
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10-06-2020, 05:44 PM
(This post was last modified: 10-06-2020, 07:05 PM by specuvestor.)
They have the same economic benefits but different classes so that fungibility cannot be a loophole for currency control. From a sovereign perspective they have a "hidden option" to marginalise offshore holders like marginalising onshore and offshore debt during GFC, though it is not written anywhere as well. It's a ringfencing function.
Older folks will also remember Singapore has a similar system of eg DBS (Local) and DBS (Foreign) as well and the prices differ even on the same exchange. You can see this difference for some of the H-shares and A-shares of the same company. But when they converge, as some has been hoping for past 10 years, it will be a windfall just as Singapore (Local) and (Foreign) convergence was. But it may not be a viable strategy to wait maybe another decade.
You can also structure it like what Thailand did with NVDR, after abolishing the foreign board which was interestingly convertible with local board if it hasn't hit the regulatory limit, as they know foreigners are not really that keen on voting rights in emerging Thailand as long as they have the same economic benefits.
This is part of the Structure that we need to understand and analyse
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
Think Asset-Business-Structure (ABS)
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11-06-2020, 04:55 PM
(This post was last modified: 11-06-2020, 05:02 PM by Barefoot.)
Company is paying a dividend of RMB 0.3 per shares (not yet ex div?). Just calculated if you bought the shares listed in STI at USD$0.8, the dividend yield is more than 5%.
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17-06-2020, 02:15 AM
(This post was last modified: 17-06-2020, 02:22 AM by Barefoot.)
The company just made an announcement that the state fund which control the company will transfer the amount of share no lesser than 65% to another entity. The so-called "Mixed reform of central enterprises" has finally kicked off in this company. Ownership of this company will change. I am starting to feel that I have bought too little shares of this company.
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10% up today at SSE, the maximum daily trading stop.