“You can always say people can trade Hong Kong shares in New York, just like ADRs [American depositary receipts], but it’s much less liquid than Hong Kong. It is the same thing [in RQFII],” Hang Seng executive director Andrew Fung Hau-chung said in the article.
Since mainland China-listed A-Shares that trade on in Shanghai and Shenzhen are not accessible to most foreign investors, people would typically gain exposure to Chinese equities through China index funds that invest in Chinese companies listed in Hong Kong or New York.
However, investors can take a look at the Market Vectors China ETF (NYSEArca: PEK), which is the only U.S.-listed ETF that provides access to China A-shares.
For more information on China, visit our China category.
Max Chen contributed to this article.