Dear DUSA Members and Friends,
We are delighted to present you the sixth session of the Online Brown Bag "Lunch and Learn Sessions" from DUSA Annual Partner: International Business School Suzhou (IBSS) at Xi'an Jiaotong-Liverpool University (XJTLU).
Topic: Stock Investment Under Stock Connect: A- or H-share?
The Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect ("Stock Connect") programmes, launched in November 2014 and December 2016 respectively, allow international and Mainland Chinese investors to trade eligible securities in each other's markets through the trading and clearing facilities of their home exchange. As at 31 October 2019, the total cumulative Northbound trading turnover on Stock Connect was RMB17.41 trillion, bringing net capital inflows of RMB860 billion into the A-share market. Hong Kong and international investors held a total of RMB1.22 trillion worth of shares listed on the Shanghai and Shenzhen exchanges as at the end of October, compared with RMB86.5 billion at the end of 2014, shortly after the launch of Stock Connect. Meanwhile, total cumulative Southbound trading turnover was HK$8.75 trillion, bringing net capital inflows of HK$987 billion into the Hong Kong market. Mainland investors held HK$999.5 billion worth of Hong Kong-listed shares through Stock Connect as at the end of October, up from HK$13.1 billion at the end of 2014. These statistics (and other analyses) suggest that after launch of Stock Connect, trading in A-shares has increased more than trading in H-shares. Given that A-shares are on average 45% more expensive than the corresponding H-shares during the period 2012-2018, and that the AH price premium actually increased after Stock Connect, it is intriguing why investors choose to trade in the higher-priced A-shares instead of the lower-priced H-shares. In this talk, we explore some possible explanations for this interesting phenomenon in the Chinese stock markets.
12:10 PM -12:50 PM, Wednesday, June 10, 2020
Registration will be accepted on a first-come first-served basis, with priority given to DUSA Members.
Link of seminar will be sent upon registration prior to the event. Please ensure your e-mail address is valid and try also to check your junk mail just in case.