China Growth Stocks

[tenenbaum]

Any offshore asset is generally out of reach for the average Chinese investor due to the restrictions on the convertibility of the RMB. Several wealthy Chinese individuals and institutions do, obviously, have assets offshore with which they can invest but they would be a minority when compared to the Chinese investing masses.

This liquidity effect is one of the primary reasons for the tendency of a given firm's H-shares to trade at a discount to their corresponding A-shares.