H-shares provide market access

Article Excerpt

Hong Kong is largely seen as a gateway for foreign investors looking to invest in Chinese stocks outside of the select few offering American depository receipts (ADRs). The stock exchange for this Chinese territory is Asia’s third largest (after Japan’s and China’s); it’s also the world’s fourth largest. The value of all stocks trading on its platforms is in excess of $4 trillion. That’s well below the $28 trillion on U.S. markets, but dwarf’s Canada’s $1.7 trillion. The Hong Kong Exchange hosts 2,315 listed companies and is the largest offshore (international) listing venue for Mainland Chinese companies. Those securities are called H shares and are quoted and traded in Hong Kong dollars. Many companies dually list their shares on the Hong Kong market and on one of the two Mainland Chinese exchanges. H-shares are available for both domestic and international investors. Operating in Mainland China, the Shanghai Stock Exchange and the Shenzhen Stock Exchange host the majority of Chinese stocks. Those listed shares are…