1. Premiums hit new lows.

Recently, the AH share premium index hit a new low for the year.

This index reflects the premium of A-shares relative to H-shares. Now that it is at a low level, does it herald a reversal in the A-share market?

With the completion of the share-trading reform, institutional dividends and improvements in performance have driven the A-share secondary market to rise steadily. The Shanghai Composite Index has reached more than 6,000 points, and the AH share premium index has risen rapidly.

We believe that the external market may fluctuate at a high level, A-shares will have insufficient upward momentum, and the AH premium index will likely remain low for a long time.

Increasing correlation is a trend.

2. The premium in the financial sector is obvious.

Among the 9 stocks with inverted AH prices, bank stocks accounted for 33%, and financial stocks accounted for 55%, including 3 bank stocks and 2 insurance stocks.

Financial stocks have always had a large weight in the A-share market, and their rise and fall can often influence the market, and key financial stocks have experienced large negative premiums.

It is worth noting that the two inversions of the premium rate of AH bank stocks coincided with the time when the stock price of A-share banks reached the bottom.

So the current stagnation of the index has a lot to do with this.

3. It’s not that funds can’t see this kind of behavior, but the unspoken rules behind it determine that they can’t attack on a large scale.

This upside-down opportunity will begin to show a gradual response after the holiday.