Although I am not an expert on China I think its very difficult to trade Chinese Stocks that are listed domestically. The only way I know you can trade them is through a QFII like Goldmans for example. They are bascially allotted an exposure entitlement - they are always full up on this exposure. This is what i know just as general informaiton:
- Two Chinese stocks markets:
o Shanghai Stock Exchange
o Shenzhen Stock Exchange
- Three types of shares listed in Chinese Stock Exchanges:
o A-Shares (RMB denom equity) - domestic investors / foreign investors through QFII facility (mkt cap approx $380bn, 1345 companies, 820 on Shanghai, 530 on Shenzhen)
o B-Shares - $denom in Shanghai / HK$ denom in Shenzen - domestic/foreign investors (Mutual fund prohibited)
o H-Shares - Chinese companies incorporated in mainland, listed in HK (H-share and Red Chip kt cap approx $385bn)
o Red Chips – companies owned by mainland entities, incorporated and listed in HK.
H-Shares are you best bet...not sure how you would trade these though...hope this helps
- Some companies have both H-share and A-share listings.