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China's Elusive Arbitrage Trade Is Back on the Radar After MSCI

  • Hang Seng China AH Premium Index in focus following review
  • Valuation differences between A and H shares may narrow
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MSCI Delays Argentina, Saudi Arabia EM Decisions

The price gap between Chinese stocks listed domestically and in Hong Kong is seen narrowing now that MSCI Inc. has decided to include both in its indexes.

“As a market opens and you’ve got two prices for the same thing, you should see the prices converge,” said Mark McFarland, chief Asia economist at Union Bancaire Privee. “It ought to work that way.”