“Low-valuation, big-capitalization H shares that have big discounts to A shares and good liquidity will realize above-average returns,” Xie, a fund manager at Invesco Great Wall Fund Management Co., said in the article.
The two governments have adopted the so-called Shanghai-Hong Kong Stock Connect Program. Due to a new China Securities Regulatory Commission rule adopted at the end of March, domestic Chinese money managers are no longer required to be part of the Qualified Domestic Institutional Investor program to utilize the link. Previously, the Stock Connect program was only opened to wealthy mainland individuals and some index-tracking ETFs.
iShares China Large-Cap ETF
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Max Chen contributed to this article.