The Hang Seng AH premium index hits a five-year low, with some companies experiencing a "H-share premium" phenomenon.

Since the beginning of this year, the Hong Kong stock index has been overall strong, outperforming other major global stock indices. The Hang Seng AH premium index has been continuously decreasing. On June 12, the index hit a low of 126.91 points, the lowest since June 2020. As of the close on June 13, the Hang Seng AH premium index was at 128.05 points, with a total decline of over 10% since the beginning of the year. It has always been a common phenomenon for A-shares to have a premium over H-shares. Currently, 42 companies still have an AH premium rate exceeding 100%. At the same time, companies with H-shares trading at a higher price than A-shares, such as Ningde Times, WuXi AppTec, and China Merchants Bank, are becoming more common. Compared to A-shares, H-shares are more affected by global liquidity, with foreign capital inflows and southbound funds continuously driving up H-share valuations, narrowing the price difference with A-shares. Many industry insiders believe that the AH price difference is expected to continue to narrow in the short term, and the current changes may indicate the beginning of a new long-term trend.