The returns in the China A shares have not been very compelling, but some changes in the fall may be worth reviewing.
If you look at the China stock indices, you would be surprised to see the sideways movement. The Bank of China has been accommodating like other central banks. It may have had some fits and starts but market liquidity has been available. China growth has come down but is still at levels that would be the envy of most countries. Stock valuations are getting more attractive albeit accounting is still an issue.
However, the most important issue may be coming in the fall when Hong Kong and Shanghai implement Stock Connect. This is the system that will facilitate the purchase of Hong Kong stock by mainlanders and Shanghai A shares by foreigners. It is a long way from free flow of capital but these types of movements are good for all investors and may cause more interest in the A share market
If you look at the China stock indices, you would be surprised to see the sideways movement. The Bank of China has been accommodating like other central banks. It may have had some fits and starts but market liquidity has been available. China growth has come down but is still at levels that would be the envy of most countries. Stock valuations are getting more attractive albeit accounting is still an issue.
However, the most important issue may be coming in the fall when Hong Kong and Shanghai implement Stock Connect. This is the system that will facilitate the purchase of Hong Kong stock by mainlanders and Shanghai A shares by foreigners. It is a long way from free flow of capital but these types of movements are good for all investors and may cause more interest in the A share market
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