Like Chinese Stocks? In Hong Kong, They’re 16% Cheaper
This article is for subscribers only.
The rush to pile into the world-beating stock rally in Shanghai has become so fevered that many investors are passing over identical shares that are trading more than 10 percent cheaper in Hong Kong.
It’s a reminder of how froth can overwhelm basic value investing principles in a booming market. Companies with equity listings in both cities are about 16 percent less expensive in Hong Kong than on the mainland, the widest gap since June 2012, according to the Hang Seng China AH Premium Index.