As A Shareholder Of China SOE's, You Are Treated Arbitrarily....

If you are a foreign investor in China, its difficult to be treated in a sensible manner and one can never expect to be treated fairly. Recent announced schemes to unlock the non-tradeable shares of various SOE's, is arbitrary and difficult to understand. Foreign shareholders, the dopes, get nothing, while local shareholders get protected through put options and new shares schemes.

B shares on China's stock exchanges fell 5% on Monday as it became obvious that foreign shareholders will be treated unfairly relative to their local counterparts and one can probably expect poor treatment to continue into the foreseeable future.

The regulators have yet to say explicitly whether holders of B shares - or Hong Kong-listed H shares - will be entitled to compensation as the share structures of mainland firms undergo reform.

However, in August the regulators said that for those A-share companies also listed in the H- or B-share markets, the non-tradeable share riddle should be solved in the A-share markets.

Holders of H shares are unlikely to receive any compensation since they are categorized as foreign investors, market watchers said.

If you are a foreign investor in China's stock markets, then you are an idiot.