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November 9, 2007


Don’t Confuse the H-share and A-share Markets

ProShares launched their UltraShort FTSE/Xinhua China 25 ETF (FXP), but remember that the FXI tracks selected H-shares, not Mainland China’s A-share market. Make sure you read pages 115 and 116 of the prospectus (PDF).

“The FTSE/Xinhua China 25 Index (FXI) is comprised of 25 of the largest and most liquid Chinese stocks listed at the Hong Kong Stock Exchange (HKEX). This free float adjusted Index caps the weight of any of constituent stock at 10 percent to ensure broad representation of the Chinese economy. As of June 30, 2007, the FTSE/Xinhua China 25 Index included companies with capitalizations between $2 billion and $64 billion. The average capitalization of the companies comprising the Index was approximately $13 billion.”

Here’s a look at the weekly CSI 300 Index (the Index I use to monitor the Mainland A-share market).


Click to enlarge

This entry was posted on Friday, November 9th, 2007 at 12:40 pm (utc+8) and is filed under China, Trading and Investing.

6 Responses to “Don’t Confuse the H-share and A-share Markets”

  1. CapitalGain said:
    November 10th, 2007 at 7:30 am

    Ok I get the H and A shares distinction, which if you overlay the FXI with the CSI 300 appears to be a distinction without a difference performance-wise.

    The tops look identical, no?

  2. C. Maoxian said:
    November 10th, 2007 at 9:08 am

    CapGain: If I get a chance, I’ll post the H-share index chart this weekend and we can compare them bar by bar.

  3. chad said:
    November 11th, 2007 at 7:20 am

    I notice Chair is using DeMark quite a bit lately.

  4. C. Maoxian said:
    November 11th, 2007 at 12:14 pm

    chad: DeMark has always been on the Chair’s table.

  5. November Monthly Review | Condor Options: Iron Condor Trading Newsletter said:
    November 12th, 2007 at 10:54 am

    […] You probably don’t need us to tell you that the markets have taken a turn for the worse, and that “the top” may very well be in. It certainly looks that way in China. If you have been living under a rock for the past few weeks, go read up on all the buzzwords: credit crunch, subprime meltdown, Citigroup CEO, Fed rate cuts, big bank bailout, dollar decline, sovereign investment funds, $100 oil, cash-strapped consumers, gross incompetence and criminal activity at every level of the current Administration […]

  6. Maoxian » Looking at the Top in the H-share Market said:
    November 12th, 2007 at 4:14 pm

    […] Don’t Confuse the H-share and A-share Markets China’s Stock Markets Have Topped Ways To Take a Leveraged Short Position on China Cat:  […]

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