China Mainland Stocks in Demand as Korea Sinks Hong Kong: Chart

The premium on China’s mainland-listed stocks over those traded in Hong Kong swelled by the most since January on Monday, expanding to the widest since July last year as North Korea-inspired risk aversion weighed on Hong Kong’s equity market. While the Hang Seng China Enterprises Index retreated in line with stocks in the region, the Shanghai Composite Index edged higher, extending its steady recovery from a 2017 low reached in May. Some investors have suggested A shares could outperform by the year-end, given the run-up in H shares has made them less attractive from a valuations perspective.

— With assistance by Emma O'Brien

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