For example for Alibaba, 9988 is the ticker on the Hong Kong stock exchange, whereas BABA is the NYSE listed ADR. 9988 trades in HKD and BABA trades in USD.
I assume that there are differences in currency fluctuations (in regards to how the USD trades vs the RMB and how the HKD trades vs the RMB). However, what other differences are there?
Do Hong Kong listed stock provide any additional protection from investors versus the NYSE listed ADRs? I'm assuming that in a black swan event of total US delisting of all Chinese stocks off American exchanges, the HK versions would still trade, though at a discount from present prices.
If the Chinese government were to close the loophole of listing shell ADRs on American exchanges, would 9988 still legally be able to trade? (albeit at a discount again, due to reduced audience).
Thanks for the help!
Submitted July 05, 2021 at 07:11AM by shimszy https://ift.tt/3dJ1BXR
