Mainland-Hong Kong Stock Price Premium Drops to 2014 Low: Chart

The price gap between Chinese equities in Shanghai and their Hong Kong-traded counterparts is near the narrowest in two years as cheaper valuations and a more stable currency lure investors offshore. The Hang Seng China Enterprises Index is headed for its first quarterly advance this year, rising 12 percent, and the median valuation of its member stocks is 10.2 times projected 12-month earnings. That compares with a multiple of 28.3 for the Shanghai Composite Index, which has gained 2 percent since the end of June.

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