Chinese ETFs have been hit by price swings and wide valuation gaps as a result of the suspension of trading on a large proportion of Chinese stocks last week.
Some 14,000 companies, over half of all listings on the Chinese markets, suspended the trading of their shares to mitigate the devastating effects of panic selling, causing huge problems for ETFs tracking these stocks. The companies decided to suspend their shares amid widespread investor panic, with onshore Chinese shares dropping as much as 32% over the month to 8 July. They have since rebounded by nearly 9%. The suspensions caused significant price swings on Chinese ETFs and wide gaps between the value of the funds and the assets they are tracking, according to the Financial Times....
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