ABCs
an acronym that stands for American-born Chinese. As their name implies, they are ethnic Chinese who were born in America to Chinese immigrants. ABCs look Chinese and a lot of them speak Chinese, too. But despite these seeming advantages, many ABCs have a poor understanding of Chinese culture and society, and they have a tough time succeeding at business in China.
A-Shares
Companies incorporated in Mainland China can issue A-shares that are listed on the two Chinese Mainland exchanges, the Shanghai and Shenzhen exchanges. A-shares are technically only available to Chinese citizens, although there are some convoluted ways around this restriction for institutional investors. The point is that they are designed to be bought and sold within China by Chinese residents. A-shares are priced in yuan (specifically, the renminbi, or "people's currency" that is the official currency of the People's Republic).
B-Shares
B-shares are offered by companies incorporated in Mainland China, but they are dollar-denominated securities traded in U.S. and Hong Kong dollars. Like A-shares, they are listed on the Shanghai and Shenzhen exchanges. B-shares were primarily a vehicle to give SOEs a place to go public and raise money from outside of China. Thus, they are available to foreign investors and also to Chinese residents. The B-share market is, for all intents and purposes, a dinosaur; it hasn't had a new listing in over six years. Many China observers expect it will be completely obsolete in the next few years.
Chuppies
A term that I coined to describe young and affluent Chinese professionals. I expect Chuppies to succeed the Yuppies as the driving force of global economic growth. No longer hindered by radical communist ideology, the Chuppies grew in prosperity as the China Miracle started to unfold. As globalization accelerated after the 1990s, many Chuppies worked at or with foreign firms and learned very quickly. They embrace globalization and often talk about the importance of getting China to "connect with the rest of the world." They are well-educated, savvy and confident. Most of them are proficient in English, and more than any other demographic group in China, Chuppies embrace American style consumerism. They love cool gadgets that set them apart from their less-well-off countrymen.
H-Shares
H-shares are offered on the Hong Kong exchange by companies incorporated in Mainland China. This is easy to remember because "H" stands for Hong Kong. Shares are denominated in Hong Kong dollars, which is pegged to the U.S. dollar. The shares are typically offered by higher-quality companies than those found on the Mainland exchanges, including some of the better-run SOEs and companies headquartered in Hong Kong. H shares are available to foreign investors, but are very hard for Americans to purchase, as I'll explain in a moment. (For more specifics on the Hong Kong Stock Exchange, go to its website at http://www.hkex.com.hk/index.htm.)
N-Shares
N-shares stand for New York Stock Exchange shares. There are more than 50 companies based in Mainland China that have listed their shares on the prestigious NYSE. [are they growing in number? At what rate?] Specifically they are known as ADRs which stands for American Depositary Receipts. High-quality Asian companies seeking U.S. capital are frequently listed as ADRs, and this group includes more than 150 Japanese companies and 130 Indian companies. Because of NYSE's regulations and requirements, ADRs have to adhere to higher standards than they would on their homeland exchanges. This means that the cream of the national crop usually finds its way to the NYSE.
Princelings
Children of high-ranking Communist Party and government officials who have parlayed their family's positions into wealth, power and prestige. Although some of these princelings followed family tradition and entered politics, more are using their connections to prosper in the business world. Many of China's most powerful and profitable businesses -- as well as many SOEs -- are led by princelings. Today, there are around 1,000 families of powerful party and government officials who make up the princeling class.
Sea Turtles
Chinese expatriates who live abroad. Many sea turtles have returned to China in recent years to take part in the China Miracle by starting their own businesses.
SOEs
An acronym that stands for state-owned enterprises. These are corporations owned by the Chinese government. Many of them are publicly traded, and they still make up the majority of China's largest businesses. However, government ownership (for most of them) is a liability. SOEs are often corrupt and inefficient, and they're not used to responding to the marketplace. They don't stand a chance competing against the much more effective private businesses run by entrepreneurs who have a burning desire to succeed. Most SOEs have been -- and will continue to be -- lousy investments.
Notice I said "most." There is one exception when it comes to investing in SOEs: enterprises with government monopolies in major growth industries that still control their markets, such as energy and telecommunications. These monopolies are like licenses to print money, and investing in the right ones (like our own China Aluminum, China Life, China Mobile, CNOOC and Sinopec) can be very profitable. I will talk more about these in future issues of China Strategy.
QDII
An acronym that stands for Qualified Domestic Institutional Investors Program. The QDII is a ruling that the Chinese government passed on May 11, 2007. The ruling states that Chinese banks can start investing in foreign stocks. This is huge news because up until recently, banks had only been allowed to invest in foreign bonds and the domestic markets in Shanghai and Shenzhen.
Source: http://asia.investorplace.com/resources-and-tools/glossary-of-terms/
