China stocks jumped the most in 15 months. What's up?
China's Shanghai Index rose 3.1 percent overnight to a 3-year high. To be blunt, it's a bet on central bank easing, but it's a good time to highlight that China's domestic market—long inaccessible and given up for dead—has been revived in the second half of the year.
The Shanghai Index is up 31 percent this year, but you wouldn't know that if you were investing in conventional methods. There is a huge difference in the China ETFs that are available for U.S. investors.
Simply put, the Chinese stock market is divided into two main segments: those shares that trade only in mainland China (known as A-Shares), and those that trade outside mainland China, including Hong Kong and the United States.
Because of restrictions on the ability of foreigners to own A shares, the mainland Chinese market often trades at a substantial discount—or a premium—to the China shares that trade outside the U.S.