oth risk .. This knowledge is like general knowledge, not for interview, not for personal investment, but can help my education effort for my kids.
https://www.ubs.com/global/en/asset-management/insights/china/2019/stock-connect-china-a-shares-faqs-equity-investing.html is a FAQ. https://research.ftserussell.com/products/downloads/Guide_to_Chinese_Share_Classes.pdf is a pdf showing a table.
China A-shares trade on the two Chinese stock exchanges, the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE). Historically, China A-shares were only available for purchase by mainland citizens due to China’s restrictions on foreign investment.
Gary believed China ADR stocks are correlated with China index much more than SP500.
— Chn A-share ETF .. I think the exchange fee and broker commission on both entry and exit is likely higher than the FSM fee.
Also need to find out how to use interactive brokers…
— currency and other defining features
China A-shares are only quoted in RMB, while B-shares are quoted in foreign currencies, and are more widely available to foreign investors. On the Shanghai Exchange, B-shares trade in U.S. dollars. On the Shenzhen Exchange, B-shares trade in Hong Kong dollars.
Some companies opt to have their stock listed on both the A-shares and B-shares market. Due to the limited access of Chinese investors to B-shares, the stock of the same company often trades at much higher valuations on the A-shares market than on the B-shares market.
— retail vs institutional investors
China A-share markets are dominated by retail investors. Therefore, China’s A-share markets can be volatile.
SSE and SZSE are both more retail-driven than HKEX.
— issuing entity .. A/B/H shares can be issued by the same entity. I think N shares too (on New York exchanges including OTC), but am not 100% sure.
Most of my China stocks are N-shares including the OTC stocks.
Due to access control, I think the onshore market has some kind of correlation among the stocks, driven by China retail investor[1] herd instinct. The H-shares and N-shares have correlation among them, driven by the investors [2] on these (more open) markets. [1] and [2] are probably two distinct groups.
There’s also some correlation between 2 market segments.
— indices.. There are many indices for the various market segments. JustEtf.com compares index performance figures over 1Y (or 3Y). You can see the indices are quite different.
best China index? You can collect the count of tracking ETFs for each index. The most popular index is MSCI China.
Gary singled out FTSE A50.