Beijing stepped up to support the flailing mainland equity market, enacting measures including “a ban on major stockholders and executives selling stakes in listed companies for six months, an order for state-run companies to buy equities and an investigation by the nation’s public security bureau into short-selling,” reports Bloomberg.
While China is the second-largest economy in the world, many emerging market fund managers have not pulled the trigger on adding more Chinese onshore equities into their portfolios. Consequently, many retail investors remain largely underweight China and less exposed to the recent bout of volatility. Nevertheless, some investors have held some China exposure through Hong Kong-listed Chinese companies, but the H-shares stocks have not shown the same level of volatility as A-shares.
Deutsche X-trackers Harvest CSI 300 China A-Shares ETF
