Do Chinese ADRs contribute to the NASDAQ Composite Index?

Just wondering, do Chinese and other foreign ADRs contribute to the NASDAQ composite index or not?

Also, in general would the Chinese ADRs like Alibaba, Baidu, Sina and Weibo perform in-line with Chinese/HK stocks, or would they perform more closely in tandem with American stocks?

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  1. >Also, in general would the Chinese ADRs like Alibaba, Baidu, Sina and Weibo perform in-line with Chinese/HK stocks, or would they perform more closely in tandem with American stocks?

    Not at all. ADR’s correlation will be significantly stronger to their own index because the systematic risk the firm is exposed to is mostly within their own economy.

    That being said, most economies are tied through trade and impacts to one impact another. Beta still can be pretty close if not the same if the country trades a lot w/the u.s. (I.e. Canada, Britain, Mexico, China, etc). If the country has weak ties to the U.S. (Russia for example) you could expect the Beta to be lower.

    >Just wondering, do Chinese and other foreign ADRs contribute to the NASDAQ composite index or not?

    Adrs trade on the nyse. Domestic indexes only have (as far as I know) domestic companies.

  2. >**Eligibility**

    >Index eligibility is limited to specific security types only. The security types eligible for the
    Index include common stocks, ordinary shares, **ADRs**, shares of beneficial interest or limited
    partnership interests and tracking stocks. Security types not included in the Index are
    closed-end funds, convertible debentures, exchange traded funds, preferred stocks, rights,
    warrants, units and other derivative securities.

    >**Eligibility Criteria**

    >To be eligible for inclusion in the Index, the security’s U.S. listing must be exclusively on
    The NASDAQ Stock Market (unless the security was dually listed on another U.S. market
    prior to January 1, 2004 and has continuously maintained such listing).

    Source: https://indexes.nasdaqomx.com/docs/methodology_COMP.pdf

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