As mainland investors buy the Hong Kong-traded H-shares corresponding to mainland A-shares, discounts between the two markets are shrinking. Here’s a rundown of the discounts between mainland and Hong Kong prices. The rising quota of Hong Kong purchases assigned to mainland investors will eventually shrink the premium, but we don’t know in advance whether that will occur through a fall in the A-share price or a rise in the H-share price, or both. Asia Unhedged favors the latter view, but it’s caveat emptor.

Asia Times Financial is now live. Linking accurate news, insightful analysis and local knowledge with the ATF China Bond 50 Index, the world's first benchmark cross sector Chinese Bond Indices. Read ATF now. 

Join the Conversation

1 Comment

  1. Hi, i read your blog from time to time and i own a similar one and i was just curious if you get a lot of spam responses? If so how do you prevent it, any plugin or anything you can suggest? I get so much lately it’s driving me mad so any help is very much appreciated.

Leave a comment

Your email address will not be published. Required fields are marked *