ADR vs H share and how can foreigner trade H share ?

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Siwei Zhong

Jul 26, 2007, 10:19:19 AM7/26/07
to Lets Think China
these questions seems to be commonly asked, hence i post it here
instead of getting back to u individually.

Pls don't ask me for individual stock recommendation. For your own
benefit I will not do that.

Just check out all I discussed here and in my blog

They are already good starting point for you to customize into your
own needs


Yes, ADR correlates very closely with its underlying.

only problem is that not all H shares are listed as ADR in US,
especially those newer listed companies. In fact China Life is the
last large H share listed, after facing the SO probelms China
basically chose not to list in US and rather go to HK .

- Hide quoted text -

Thanks for your insightful and educational information on A/H
convergence as well as E*trade global trading new feature. It
certainly has helped a lot.

One question - What is the differernce between purchasing some H
shares vs their US ADRs (ie, ACH, HNP and SNP)? Though at different
prices, I was informed by a friend that H shares have very tight
(1-2%) price correlation with their respective US ADRs?

On Jun 23, 6:27 pm, Siwei Zhong < > wrote:
> i've seen E*Trade in US promoting HK stock trading. You may want to
> check it out.
> On Jun 24, 1:34 am, >
> > What is the best way for a U.S. resident (Chinese citizen) to purchase
> > H Share? It seems you have to set up a trading account in HK in
> > person - is there another way to do this without having to be in
> > person in HK? Thanks!

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