chan asked in Business & FinanceInvesting · 1 decade ago

ADR or H shares?

Im interested in buying the stock of a Chinese company. The company offers both H shares and ADR shares. If I believe that the Yuan will appreciate over the dollar, then it would be better for me to buy the H shares right? Or does it not matter?

And do you believe the Yuan will appreciate over the dollar in the next 1 year?

2 Answers

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  • 1 decade ago
    Favorite Answer

    First things first....the Yuan will appreciate faster than the dollar at least in the next year due to China's 150% economic growth (vs US's 2%). And (I'm not sure where you are in the world) "H" shares are traded on the Hang Seng, Hong Kong's exchange which is different than China's stock exchange wich is the SSE or Shanghai Exchange. Do you have acces to these? I think you will be better off with an ADR...it will be cheaper to buy, better liquidity, and you will get the strenght and security of the US exchanges. Cool?

    Source(s): former trader...too many sleepless nights.
  • Anonymous
    1 decade ago
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