China A-shares refer to the stocks of Chinese companies that are traded on the Shanghai and Shenzhen stock exchanges. These shares are denominated in Chinese Yuan (RMB) and are generally available to domestic investors, though certain foreign investors can also participate through qualified programs like the Qualified Foreign Institutional Investor (QFII) scheme. In this post, we’ll cover the key aspects of tick size and lot size when trading China A-Shares.
Tick Size
In the context of stock trading, the tick size refers to the minimum price movement of a stock. For China A-Shares, the minimum tick size is RMB 0.01. This means that the price of a stock can only move in increments of 0.01 RMB. The tick size is essential for determining the granularity of price movements and is important for traders to understand when placing their buy or sell orders.
Lot Size
The lot size in China A-Share trading refers to the minimum quantity of shares that must be bought or sold in a single transaction. For China A-Shares, 1 lot equals 100 shares. This means that if you wish to buy or sell shares, you need to trade in multiples of 100.
An interesting aspect of China A-Share trading is the concept of odd lots. If you hold fewer than 100 shares of a stock, this would be considered an odd lot. Odd lots generally arise from corporate actions like bonus issues or rights issues. Odd lots can be sold, but only when all stocks are sold out. It’s important to keep in mind that odd lots may not always have the same liquidity as regular lots.
Trading China A-Shares with Tiger Brokers
Tiger Brokers provides a seamless trading experience for investors who are interested in trading China A-Shares. With access to major Chinese stock exchanges like the Shanghai and Shenzhen exchanges, Tiger Brokers makes it easy for investors to track stock movements, place orders, and manage their portfolio efficiently.
Conclusion
By understanding tick size and lot size, traders can make informed decisions when trading China A-Shares. If you’re looking for an intuitive platform to explore the market, Tiger Brokers is a reliable choice.
