'Onshore' Chinese Stocks Set to Benefit From Foreign Buyers

Chinese stocks across the board will gain long term support once foreigners are finally allowed to invest in the country's onshore market, said Brendan Ahern, Managing Director for KraneShares. Ahern said China's onshore market has rallied ahead of its offshore stocks in anticipation of the so-called Connect program. He added that the discount between the two markets will narrow once the Connect program is instituted, but onshore stocks will rise in the long-term as they are added to the indices. Finally, Ahearn said the Alibaba put Chinese stocks in a positive light after accounting scandals sullied the market.