Public offer to dig for gold AH shares at a discount opportunity

Since the beginning of the year 2026, the A-share market has seen increased volatility and differentiation, with public funds quickly switching their investment logic towards undervalued, high dividend, and high certainty assets. In search of a safety net, the A-H share discounts have continued to recover, with a group of highly discounted targets being actively explored by public funds. The pricing advantage of Hong Kong stocks has become more prominent, driving expectations of discount convergence and valuation recovery for related companies. Arbitrage strategies to find safe havens have become a major tool for fund managers to achieve excess returns on individual stocks. According to a survey by Securities Times, companies listed in both A and H shares, such as Yitai Group, Zhejiang Shibao, and Andeli, are becoming key targets for public funds to invest in, with their Hong Kong stock targets performing significantly better than their A-share counterparts, reflecting a return to the fund's belief in "cheap is the only rule."