Chinese and Global ADRs: The U.S. Investor Experience
Financial Analysts Journal, Forthcoming
26 Pages Posted: 26 Jan 2021 Last revised: 8 Apr 2021
Date Written: April 3, 2021
We study outcomes to ADR investments between August 1954 and September 2020, with attention to ADRs associated with Chinese firms. Overall, ADRs improved investors’ wealth by $1.03 trillion, with more than a third of this amount attributable to ADRs associated with Chinese firms. A value-weighted portfolio of ADRs associated with Chinese firms earned 14.1% per year since the first Chinese ADR was created in 1993, as compared to 9.9% per year for the overall U.S. stock market over the same period. These data are relevant to current policy discussions focused on Chinese firms listed in the U.S.
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