Chinese Stocks vs Chinese ADRs

In several posts and reports last year, we highlighted how even though the Chinese stock market was one of the best performing global markets, Chinese ADRs trading in the US were actually outperforming their counterparts in China.  Below we have updated our chart comparing the performance of Chinese ADRs vs the Shanghai Composite Index.  While the Shanghai Composite still remains below its highs from last Summer, our basket of Chinese ADRs has not only broken above its highs from last Summer, but it is currently trading right near its highest level in at least two years.  Some investors complain about not being able to invest directly on Chinese exchanges, but who needs that when the ADRs are going up even more than the mainland indices?

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Comments

[Cameron Newland]

Does the discrepancy have anything to do with RMB/USD's changing rate?

[phhuang]

Check CNY -- Van Eck Associates Corporation Mrkt Vctrs ETN RMB/USD

It is almost flat ...