If, eg. I own China Mobile (as an ADR or in an etf) While the US markets are closed, Ch. Mob rises $20 on the?
Hang Seng, then when the US markets open does the price automatically jump $20 (if so how?) in the opening second or is it brought into line by arbritation before the start of US trading?
- MysteryLv 61 decade agoFavorite Answer
No. If you follow specific country ETFs, you will notice that they do not always track the index in that country. CHL (China Mobile ADR) will rise (or fall) depending on what US investors think. They may be influenced by what happened on the Hang Seng. But there is no "automatic" correlation. Also, the Hang Seng rise would be in Hong Kong dollars. They do not equal US dollars.