Related News
Discount of A shares to H shares tapers
Print Edition
THE yuan-denominated A shares that used to trade at a discount to their Hong Kong-listed counterparts have seen the spread disappear ahead of the launch of the cross-border trading next week, leading analysts to caution of a possible lukewarm start for the link.
The valuation gap at which companies traded in both the mainland and Hong Kong exchanges has narrowed from an 11 percent discount in July to a 2 percent premium yesterday as domestic investors rushed to buy shares that may gain from the Shanghai-Hong Kong Stock Connect.
The Hang Seng China AH Premium Index, which tracks the average price difference of A shares over H shares, was at 102.04 yesterday.
A figure above 100 indicates A shares are traded at a premium to those of the same company listed in Hong Kong, and a below 100 means a discount.
Data from Bloomberg News showed only 17 of the 68 dual-listed shares have lower valuations in Shanghai, down from 26 three months ago.
Standard Chartered Bank expected the premium of A shares over the H shares to extend further to 7 percent in 2015.
“Since details about the program were disclosed in September, the industrial sector has benefited the most with its premium soaring to 33 percent,” the UK bank said in a note. “However, shares of consumer staples, health care and financial firms are still trading at a discount.”
UBS said the narrowing price gap has curbed room for arbitrage trading and may see lukewarm turnover under the scheme initially.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
