Hong Kong Is Losing Premium Over Shanghai’s Stock Market
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Hong Kong’s biggest political unrest since the 1960s is wiping out the valuation premium of the city’s stocks over their Shanghai counterparts.
The Hang Seng Index’s retreat to a three-month low today has eliminated the gap between dual-listed shares after it reached 12 percent in July. The Hang Seng has now dropped 1.1 percent this quarter, versus a 15 percent surge for the Shanghai Composite Index, the biggest performance difference since 2009.