What impact will Chinese ADRs have on US markets?

Discussion in 'Wall St. News' started by gastropod, Jul 10, 2015.

  1. I don't know the answer to the question in the subject...and I don't know where else to place this question.

    Are the ADRs of Chinese corporations impacted by the ban on selling? Could US investors be screwed because they own ADRs of companies like Baidu and they can't reasonably sell the ADRs?

    Thanks for the answer and sorry if I posted in the wrong place!

    -g
     
  2. aqtrader

    aqtrader

    Considering the total market value of all Chinese ADRs in US market only takes less than 2%, I would say the impact should be minimal.
     
  3. d08

    d08

    ADRs follow local market rules as far as I know, meaning US rules. Chinese market regulations don't apply.
     
  4. Thanks! The scary thing I get from your response...Greece is about 2% of the European economy....and they are having cows over there worrying if the Greeks will leave the European Union...We are looking at 2% of our markets "in play" in China...hmmm, makes me think...I am not saying think correctly...just think ;-)
     
  5. d08

    d08

    ADRs are not part of any main indices...