US-listed Chinese stocks record strong gains! What happened?
Shares of major US-listed Chinese stocks also known as Chinese American Depository Receipts (ADRs) recorded handsome gains at the beginning of this week after China scrapped its Covid-19 quarantine rules.
Let’s see how most of the prominent US-listed Chinese companies performed this year:
US-listed Chinese stocks: Performance
US-listed Chinese stocks: China scrapped quarantine rules!
The Chinese government’s health body said on Monday that it will stop requiring inbound travelers to go into quarantine, in a major step towards easing curbs on its borders, which have been largely shut since 2020.
China's management of COVID-19 will also be downgraded to the less strict Category B from the current top-level Category A, the health authority said in a statement, as the disease has become less virulent and will gradually evolve into a common respiratory infection.
China economy: How quarantine rules affected the economy?
Chinese stocks have suffered over the past two years on account of the strict coronavirus-led movement restrictions which have led to supply-chain disruptions, earnings downgrades and an overall drop in the Chinese economy.
The Shanghai Shenzhen CSI 300 index has lost about 21.64% so far this year and the Hong-Kong based Hang Seng index has lost about 15% of its value this year.
According to Reuters, these containment measures had slowed the $17 trillion economy to its lowest growth rate in nearly half a century, which furthermore disrupted global supply chains.
US-listed Chinese stocks: Local market performance
US-listed Chinese stocks: US-listed Chinese stock ETF performance
This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.
How many Chinese companies are listed in US?
The SEC currently classifies more than 160 U.S.-listed Chinese issuers—well over half of the total group—as “Commission-Identified Issuers.”
Can I buy Chinese stocks in US?
Buying stocks directly in a foreign market like India or China is possible, although it might be harder than purchasing domestic shares. Investors can purchase American Depositary Receipts on U.S. exchanges, which are certificates that represent shares in a foreign company. China A-shares are open to foreign investors.
Are US companies pulling out of China?
Nearly twice as many U.S. companies cut their investment in China this year versus last year, the American Chamber of Commerce in Shanghai found in its latest survey, released Friday. For 2022, 19% of respondents said they were cutting investment in China, up from 10% in 2021, the report said.