The growing frenzy for Chinese offshore stocks has taken a new turn as investors bid up underperformers.
About a third of the companies on the Hang Seng China Enterprises Index racked up fresh one-year highs last week, the biggest proportion since the country’s 2015 stock bubble. Laggards such as PetroChina Co. and China Galaxy Securities Co. have soared, while stubbornly cheap banks are turning red hot.
