Plunging Chinese stock prices may have U.S. investors concerned about their exposure. But, for the most part, they probably don’t need to worry.
Advisors say many U.S. investors, especially those who have diversified, won’t feel a huge bite to their overall portfolio.
For one, most U.S. investors and mutual funds own shares of Chinese companies traded on the Hong Kong Stock Exchange, not the Shanghai Stock Exchange, said Patricia Oey, senior fund analyst at investment research firm Morningstar.
While the Shanghai Composite stock index, which tracks China’s benchmark stock market, dropped 8.5 percent on Monday, suffering its biggest daily loss since 2007, Hong Kong’s Hang Seng Index fell 3.1 percent.