“While the Hang Seng China Enterprises Index soared 17 percent in April, the most since October 2011, A shares in China are still trading at a 31 percent premium to stocks in Hong Kong,” according to Bloomberg.
Investors are also embracing H-shares small-cap ETFs. For example, an April surge of 23.4% sparked almost $24 million of inflows to the Guggenheim China Small Cap Index ETF (NYSEArca: HAO). That after HAO was largely glossed over during a parabolic ascent that saw the ETF climb to $32 from $26 in just seven trading sessions. [Big Move for a China Small-Cap ETF]
Lost in all the fanfare surrounding China ETFs and Hong Kong stocks has been the largest U.S.-listed that actually tracks Hong Kong. The iShares MSCI Hong Kong ETF (NYSEArca: EWH) climbed 6.9% last month as investors poured $355 million into the $3.5 billion ETF.
EWH resides near all-time highs. The ETF, which is home to 40 stocks, allocates 30.5% of its weight to real estate stocks.
iShares China Large-Cap ETF
