What does AH share premium mean?
The premium of AH shares is aimed at listed companies listed on both A shares and Hong Kong stocks. Most of these stocks show that the share price of A shares is much higher than that of H shares, which is called AH share premium.
So why is there a premium for AH shares? Why are A shares more expensive than H shares as a whole?
1 the domestic capital market is not particularly open, and many funds are not free to invest abroad. They can only find investment targets in A shares, which objectively causes more funds to chase fewer stocks.
Mainland investors are limited to invest in Hong Kong stocks through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, and the opening threshold of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect is high, which greatly affects the arbitrage mechanism between AH stocks.
There is a premium factor in 3A shares. First of all, at present, the subscription of A shares needs the market value of the secondary market for placement, and the initial listing of new shares continues to rise, so there is risk-free arbitrage.