After a 39% Rout, China Stocks Are Still Double Hong Kong Prices
- Dual-listed stocks trade at 115% average premium in mainland
- Selloff has erased almost $5 trillion of China market value
Is This the China Hard Landing Investors Fear?
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For all the losses in Chinese stocks since the nation’s record bull market ended in June, shares on mainland exchanges are still more than twice as expensive as their identical counterparts in Hong Kong.
Dual-listed companies traded at an average 115 percent premium in China at the end of last month, within three percentage points of a four-year high in July, according to monthly data compiled by Bloomberg. The price differences have persisted even as a $4.9 trillion selloff dragged the Shanghai Composite down 39 percent from this year’s high.