The valuation gap between A shares and H shares is expected to dwindle, though the two share classes still won’t be fungible, notes a Credit Suisse analyst.
Victor Lin of Credit Suisse in a trading strategy report dated April 11, 2014 notes investors anticipating narrowing spread between A and H shares could profit by getting long exposure to A shares and shorting H shares.
Rough trading in Chinese A shares
Recently, Chinese shares crumbled after the government announced harsher-than-expected measures to curb the surge in property prices. Consequently, Chinese A shares, which track stocks listed on the Shanghai or Shenzhen exchanges, saw some rough trading last month. Though only Qualified Foreign Institutional Investors and Renminbi Qualified Foreign Institutional Investors have access to...
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
