We are delighted to share with you our most recent research piece: “The sensitivity to policy risk of Chinese A-shares”.
An investor desiring to access Chinese equities has two options: H-shares listed on the Hong-Kong exchange, and A-shares listed in
the mainland, with restricted access and lower liquidity. Recently, stock market indices started increasing their exposure to A-shares, to reflect the full share of China in the global capital market.
In this paper, we look into:
- A-shares correlation to the global market showing that A-shares may seem like good diversifiers
- The causes of this apparent diversification (a combination of market frictions and reaction to internal discretionary policies), making risks associated to A-shares very hard to accurately assess.
We hope you will enjoy the read and welcome your feedback. Please contact [email protected] or your usual TOBAM
contact for any requests.
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