China Says Good Riddance to August

With a decline of nearly 7% today, China's Shanghai Composite closed down 21.8% for the month and is now down 29.5% from its recent rally highs.  August was also the first month this year where the Shanghai Composite finished lower.  While Chinese stocks have been weak this month, ADRs of Chinese companies listed in the US have held up considerably better.  Later today, we'll update our basket of Chinese ADRs to see how they react to last night's decline in the mainland.

 

 

Comments

[Alexis]

http://www.fundmymutualfund.com/2009/08/china-falls-another-67-fills-late-may.html

[lei]

so why you so excited about the ADR. Just matter of time to catch up with mainland. did n't you noticed back in Feb the ADR was down while mainland was up?

[Anthony Mallgren]

@BIG Would you be willing to disclose what you have in your Chinese basket of ADRs? I'm looking at stocks like OTC:TBYH and I'm not seeing the same performance. Are you ADRs industry specific?

@lei I think the ADRs are more of a reflection of the availability and willingness of American investors to invest in foreign companies. Trying to lead on that ADRs simply lag behind the mainland stocks ignores a whole slew of economic factors.