The domestic Chinese equity markets are some of the largest and most liquid in the world, and they offer unique investment opportunities—yet they have been largely neglected by institutional investors.

That, in part, is because they were historically accessible only to domestic investors or foreign institutional investors. However, with the launch of the Shanghai-Hong Kong Stock Connect a few years ago and the Shenzhen-Hong Kong Stock Connect in December 2016, and enhancements made to safeguard China A-Share investors’ interests, a new opportunity has arisen.

In this paper, Casey Preyss, a portfolio manager on William Blair’s Global Equity team, discusses the China A-Share opportunity.