(China Alert) Chexit: The short road home

·US-listed Chinese companies are looking to list on the Mainland
·The range of offshore listed companies is due to shrink significantly
·Direct access to China’s equity markets will be a necessity for managers

Update: Z-Ben Advisors has observed that recent changes in the US equity market highlight the importance of China’s inbound access programs. US-listed Chinese firms began announcing privatization bids with an eye toward A-share relisting at an unprecedented pace in March 2015. Initially viewed by many as an attempt at chasing rapid growth in the face of the A-share market rally, privatization deals continued and new offers have been announced following the resumption of mainland IPOs in December. This is evidence that this is not a short-term bid for higher valuation but rather a long-term strategic play by Chinese firms. As such, Z-Ben Advisors believes this marks a continued shift in overseas investors’ options for Chinese exposure. Managers will increasingly find that onshore access channels are essential to broader investment portfolios.

Managers that rely upon the US for their China exposure are finding that door is quickly closing. One third of US-listed privately run Chinese companies across market caps have received……

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