The premium rate of AH shares continues to decline, with 5 shares already trading at a discount
As of September 30th, the average premium rate of A+H shares was 107.79%, with a median of 85.6%. After the National Day holiday, the premium rate of A+H shares significantly decreased, with the average dropping to 81.6%. On an individual stock basis, companies like WuXi AppTec and China Merchants Bank have already shown A+H share price inversion. A lower A+H share premium implies that A shares are cheaper, offering higher investment value. Short-term speculators may focus on companies with high premiums, while prudent investors should choose those with lower premiums. Investors need to understand the company's fundamentals and market expectations, and establish risk control measures
Data shows that as of the close of September 30th, the arithmetic mean of the premium rate of AH shares in the market is 107.79%, with a median of 85.6%. After the Hong Kong stock market "rises first as a sign of respect" during the National Day holiday, the premium rate of AH shares has significantly narrowed, with the arithmetic mean dropping to 81.6% and the median at 67.64%. Looking at individual stocks, the latest AH share price ratios for Zhejiang Shibao, Hongye Futures, and Jingcheng Stock were 4.29 times, 4 times, and 3.97 times respectively, compared to 6.69 times, 5.58 times, and 4.49 times on September 30th. For A-shares, the smaller the premium of AH shares, the cheaper the A-shares, indicating a higher cost-effectiveness for investment. Based on the latest prices, the AH share prices of WuXi AppTec, China Merchants Bank, Midea Group, Vanke A, and Huatai Securities have already shown an inversion. The latest price of WuXi AppTec's H-shares is 60.51 yuan, exceeding the A-share price of 52.36 yuan. The premium phenomenon in the AH share market provides investors with abundant investment clues and opportunities. From a short-term speculative perspective, investing in companies with high premiums and positive industry trends may lead to quick profits; while for investors seeking stability, companies with low premiums and stability are more suitable. In any case, in a hot market, investors need to fully understand the fundamentals of the companies they invest in and future market expectations when making decisions, while also formulating risk control measures to avoid losses caused by market fluctuations
