Why would you buy into the American depositary shares version of a stock when you can buy the Chinese version?


I’m thinking of buying a piece of a Chinese company. I find the ADS concept intriguing but rather useless for me since my broker allows me to buy the Chinese stock in HK stock exchange directly.

I’m trying to figure out why would anyone buy ADS if they can buy the same company at the Chinese stock exchange before making a decision.

My guess is out of convenience? But then there’s a delisting risk, which might explains why ADS shares is slightly cheaper than its Chinese counterpart.


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