Unlike other China ETFs, these A-Shares ETFs track companies listed in China’s stock exchange, whereas the other options track companies listed on Hong Kong or U.S. exchanges.
During the week-long holiday, Chinese mainland shares will not be trading. However, U.S.-listed China A-shares ETFs will continue to trade on U.S. exchanges. Consequently, these ETFs could trade at premiums or discounts to their net asset value
The country-specific ETF premiums and discounts could widen since the NAVs are calculated based on the prices when the Chinese markets close Tuesday, February 17 before the week-long holiday. Since the U.S.-listed ETFs continue to trade in New York, their prices will not reflect information that has been priced into their NAVs. Nevertheless, once Chinese markets open on Wednesday, February 25, the premium or discount should dissipate as market makers take advantage of arbitrage opportunities to bring the ETFs’ price back in line with their NAVs.
For more information on the Chinese markets, visit our China category.
Max Chen contributed to this article.