SHANGHAI: Investors in China’s soaring stock market are increasingly turning to Hong Kong for bargains, egging on an investment boom on the back of large tech listings and shaking off fears of political risks in the bruised financial hub.
“Elephants are dancing , but in Hong Kong, many stocks are lying on the floor,” Shen Weizheng, senior advisor at brokerage Direct Access, said during an online pitch to mainland investors on Wednesday.Mainland-listed A-shares are on average 35% more expensive than their Hong Kong-listed peers, also called “H-shares”, widening from 23% just a month ago. Share prices of the same company often differ vastly in the two markets.
“Capital is flowing into the city. The more intense the rivalry between the US and China, the more unique Hong Kong will be as a centre to welcome back leading Chinese companies listed in the US,” said Hao Hong, managing director at BOCOM International.