Investing in Chinese Equities
Can most U.S. hedge funds invest in individual Chinese stocks? How about individual U.S. investors?
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Hedge funds can generally invest in any market that they want to. An individual investor would have to find a broker that has access to the Chinese exchanges
H-shares in HK and ADRs traded in NYC yes. A-shares you need a special QFII license and only large asset managers have those. Market is still pretty immature though I think 70% of the volume is retail
For individuals I think a lot of people use interactive brokers but you need a $10k account minimum
yea they can but many of these companies are scams and are more or less penny stocks. i saw some show where these massively hyped companies in china were more or less just old warehouses with a few boxes / old furniture sitting in them and they were supposedly the next greatest thing
i dont trust fish heads as far as i can thrown em..
Was the show referring to the Chinese reverse mergers? Because I remember the big scandal with those a few years back (they raised millions for non-existent businesses). Reverse mergers can escape a lot of the scrutiny that ADRs receive to get listed. (I actually got burned on these... serves me for not doing due-diligence...)
Additional info:
QFII licenses require $10 bn AUM, so individuals cant buy A shares. Unless, of course, you're a billionaire...
B shares are open to outside investors, but these are illiquid, and not available for most chinese companies (fear of being branded as somehow un-chinese). You also have to convert currency to RMB.
H shares and ADRs are a good way to bet. A lot of the larger companies list this way. There are also a bunch of Chinese companies on the Singapore Exchange, so that might be another option.
3/5 Chinese companies are only real on paper
3/5 black people count as a person. Oh wait, wrong century.
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