How will China's equity market expansion impact portfolios?

clock • 4 min read

For equity investors seeking substantial access to the Chinese market, 2018 brought welcome news.

The China Securities Regulatory Commission (CSRC) announced it would undertake a new pilot scheme in which three mainland companies will be allowed to release some of their non-tradeable H-shares into circulation on the Hong Kong Stock Exchange. If the scheme proves to be a success this time round, then it could be rolled out to other mainland firms listed in Hong Kong. According to UBS research, we are sitting on non-tradeable H shares worth a collective HK$2.6trn ($332bn).  If this all sounds familiar, that is because it has been done before.  MSCI launches 12 China indices in pr...

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