Emerging markets veteran Mark Mobius is shunning domestic market Chinese A-shares in favour of Hong Kong H-shares following underperformance.
Franklin Templeton's emerging markets group chairman says he has heard "baffled" investors question the past underperformance of the Chinese stock market, despite the country's long-term positive outlook. "There is quite a difference between what is happening in the domestic Chinese A-share market and the H-share market in Hong Kong, which is where we are buying and holding stocks," says Mobius. He says the A-share market is generally closed to foreign investors, while the renminbi is not convertible in this market, contributing to higher volatility. "In addition, the underperforma...
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