Chinese companies traded in the U.S. made noise last year when foreign investors reacted to regulations within China, but for Chinese stocks on the continent, it was business as usual. 42% per annum, reports Wall Street Journal.
Continental China’s markets grew to around $ 12.7 trillion in 2021, proving that regulatory fears and uncertainty are mostly focused outside the country. The Shanghai Composite Index grew 4.8% year-on-year on December 31, 2021, and a stream of new listings on the Shanghai and Shenzhen stock exchanges brought growth to overall markets, making China the second largest stock market in the world.
China shares rose 20% last year, according to S&P Global Market Intelligence, reflecting $ 2.1 trillion growth; Only companies that were currently listed on one of the stock exchanges as their main listing were included in the data set.
This growth reflects what is seen in U.S. markets, with a 23% increase in market value for stocks listed on each of the major U.S. stock exchanges. However, Chinese stocks traded on the U.S. stock exchanges experienced a loss of $ 758 billion when investors vacated their positions in China, reflecting a 42% decline.
“This is the time when China wants to shift its focus to advancing its capabilities in advanced technologies and manufacturing. The stock market A has companies doing it,” said Louis Lau, chief investment officer at Brandes Investment Partners. Shares A are the continental stocks of China.
Investment in China’s terrestrial performance with KBA
For investors looking for exposure to China’s economy and A’s stock market that continued to grow last year due to regulatory and reorganization pressures, KraneShares Bosera MSCI China A Share ETF (KBA) Investing in Chinese A stocks – in particular, the MSCI China A Share Index.
The ETF occupies a medium and large representation of Chinese stocks traded on the Shenzhen and Shanghai stock exchanges, which have historically closed to U.S. investors. B.
Holdings in KBA include Kweichow Moutai, a major alcohol producer in China, at 5.78%; Contemporary Amperex Technology, a Chinese battery maker, at 3.08%; And China Merchants Bank, the first wholly-owned commercial bank wholly owned by corporate legal groups in China, by 2.26%.
KBA carries an expense ratio of 0.59%.
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