S-Shares & H-SharesYes, there is a new approved fund to invest into S-Shares, China shares listed in Singapore. However, S-Shares are not H-Shares. Given a choice the classier and bigger ones list on HKSE while the smaller specky ones list in Singapore. The one big drawback of S-Shares, they will probably NOT be asked to go relist back into Shanghai or Shenzen anytime soon. The third QDII is good news but the focus of capital onto S-Shares will peter out quickly for many reasons.
The attraction in H-shares are: the discount gap; these are superior companies in terms of market size and corporate management; these are always among the top 100 companies of all China; these are the companies asked to come back to relist in Shanghai to satisfy demand for their shares; due to the size, they are highly attractive to big international funds due to their size and liquidity; they are considered as the next best exposure to an indirect play into China; many international funds investing into Greater China (HK, China and Taiwan) are based in HK for obvious reasons; etc. While the news is good for S-shares, its not mind blowing.