Made in China: Three Things You Should Know About A-Shares
MSCI’s pending inclusion of Chinese A-shares in its broad market indexes has raised the profile of these once-obscure securities. Yet while their inclusion potentially increases investment opportunities in one of the world’s largest—and most restricted—markets, it may not be as straightforward as it appears. While this move promises to open up investment opportunities for global investors, it also requires an understanding of several unique characteristics of mainland Chinese markets.
In this paper we examine three things investors should keep in mind as they seek to access Chinese A-shares.