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Five Ways to Invest in China and India

CAF is about the only vehicle for non-PRC individual investors to get into the A shares market, so it is relevant to a discussion of the SSEC, though not really a proxy for the index. But FXI is all HK traded H and Red Chip shares. Even when companies are dual listed on the Shanghai and Hong Kong exchanges the shares trade a wildly different valuations. (There is even an index measuring this.) And A shares have been at a huge premium to the HK listed shares in the same companies. What FXI really trades like is a high Beta for the US market, reflecting US investor sentiment about the idea of investing in China. It is often totally out of sync with A shares. So I really have to question using FXI as the investment vehicle to capture an investment idea based on the A share market.