ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. China Insights Channel
  2. Chinese Stocks Climbing Due to Regulatory Hopes
China Insights Channel
Share

Chinese Stocks Climbing Due to Regulatory Hopes

Karrie GordonApr 01, 2022
2022-04-01

U.S. stocks of Chinese companies have bounced back from their downward trend after word that China is potentially considering access to audits for foreign-listed companies, reports CNBC.

The China Securities Regulatory Commission acknowledged meeting this week with major accounting firms in China and requested that they consider getting ready for joint inspections from China and the U.S. The Commission also confirmed that discussions are happening with U.S. regulators and seem to be going well, according to a recent statement to CNBC.

“We continue to meet and engage with PRC authorities in an effort to achieve a cooperative agreement that provides the PCAOB with the access required to inspect and investigate completely auditors headquartered in mainland China and Hong Kong,” the U.S. Public Company Accounting Oversight Board (PCAOB) said in a statement.

The comments come as more Chinese companies file annual reviews and are labeled as outside compliance, including search engine giant Baidu. There are expectations that unless some sort of agreement is reached between the two countries’ regulatory bodies, all 273 Chinese companies could end up delisted from U.S. markets by 2025 due to the Holding Foreign Companies Accountable Act.

While the PCAOB has warned that any assumptions about a final agreement regarding the audits is premature, markets responded positively to the hopes of a way forward that would prevent the delisting of Chinese companies from U.S. exchanges.

Stocks of Chinese companies that were on the move include Alibaba at a 7.3% increase, JD.com at 4%, Baidu rose 8%, and Pinduoduo at 9% as of trading in the morning.

Investing in China’s Internet Giants Through KWEB

KraneShares has been working to convert its ADRs into Hong Kong shares as a defensive play against potential delisting of Chinese companies in the U.S., as seen in its popular fund, the KraneShares CSI China Internet ETF (KWEB B).

The fund offers exposure to some of the biggest companies within China’s internet sector and tracks the CSI Overseas China Internet Index, which measures the performance of publicly traded companies outside of mainland China that operate within China’s internet and internet-related sectors.

A year ago, the makeup of KWEB was 75% U.S. ADRs and 25% Hong Kong shares, but it is currently 34% ADRs and 66% Hong Kong shares as the firm continues to transition into Hong Kong share classes.

Companies included in the fund are Alibaba at 11.01%, JD.com at 7.66%, and Baidu Inc. at 7.48%. All three are companies that KraneShares has already converted over to Hong Kong shares.

The ETF has an annual expense ratio of 0.70% and currently has over $6.2 billion in AUM.

For more news, information, and strategy, visit the Climate Insights Channel.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X