To make loads less noticeable, the industry then introduced B shares.

Class B shares charge a 2% management fee and a 20% incentive fees.

Class B shares usually don't have a front-end sales load.

For now, foreign companies are permitted to list only so-called B shares on the country's two exchanges.

"Therefore, you are not going to put all your money as a China fund manager into B shares," he said.

Class B shares often turn out to be a better deal for investors but are shunned by many brokers.

The B shares have risen by 20 percent since the beginning of December.

The Class B shares have 93 percent of the voting power.

These "B" shares sold to foreigners carried no ownership rights in a company.

Class B shares had previously been reserved for foreign investors.