Foreigners can access the A to Z of Chinese shares

Article Excerpt

China hosts some of the largest stock markets in the world with Shanghai, Hong Kong, and Shenzhen ranked among the global top 10 markets. Although rules governing access for foreign investors have continued to relax over the past decade, access remains somewhat complicated with a multitude of share categories subject to different rules. The majority of Chinese stocks are listed on the Shanghai and the Shenzhen stock exchanges—they are generally categorized as A shares and are quoted in the local currency, the yuan. Chinese investors, as well as qualified foreign institutional investors, can trade directly on these markets. In addition, many of the A shares are now also available for international investors through a reciprocity arrangement between the Hong Kong stock exchange and the Shanghai and Shenzhen exchanges. The iShares China A ETF invests mainly in the A shares of local Chinese companies using the reciprocity arrangement between the Hong Kong and mainland China exchanges. This ETF is, therefore, more focused on domestic listed Chinese…

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