China A-Shares: 6 Reasons Why Investors Should Consider Them

It's not just about a Chinese recovery. It's about where that recovery should be most fruitful.

(Image credit: 2014)

China A-shares – domestic stocks traded in Shenzhen and Shanghai – have performed relatively well during this crisis. That fact might surprise many investors given that Asia's largest economy was home to the COVID-19 coronavirus outbreak that has claimed so many lives and brought the global economy to a virtual halt.

The comparative resilience of China A-shares is borne out in the data. While the MSCI China A Onshore Index, a key benchmark for the asset class, was down through the end of March, A-shares have shown relative strength compared to the S&P 500 and MSCI Europe indices (Exhibit 1). They also have outperformed "offshore" China companies (H-shares, traded in Hong Kong, and American Depositary Receipts traded in the U.S.).

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Contributing Writer, Allianz Global Investors
Ms. Zheng is a Hong Kong-based senior product specialist with Allianz Global Investors. She is responsible for covering regional and China equity strategies. She joined AllianzGI in 2010 and has 10 years of investment-industry experience. Ms. Zheng has a Bachelors of Economics and Finance from the University of Hong Kong. She is a CFA charterholder.