The long-standing pricing gap between mainland China-listed A shares and Hong Kong-listed H shares of dual-listed companies has narrowed—and in some cases reversed—as global investors re-rate China’s technology companies. The Hang Seng AH Premium Index has stayed below 120 in recent sessions, down sharply from 157.89 in February 2024. The shift is most evident in hard-technology firms like CATL, Montage Technology and GigaDevice Semiconductor.
The Hang Seng AH Premium Index, a widely watched gauge of the valuation gap between dual-listed companies’ A shares on mainland exchanges and their H shares in Hong Kong, has remained below 120 in recent sessions, down sharply from a high of 157.89 in February 2024.
The shift has been most evident in so-called hard-technology names, where market leaders Contemporary Amperex Technology Limited (CATL), Montage Technology and GigaDevice Semiconductor have seen their A-H premium turn into an H-A surcharge. EV battery maker CATL’s H shares stood at a premium of about 43 per cent to its A shares as of Tuesday’s close. For Montage Technology and GigaDevice Semiconductor, the H-A premiums were 14 per cent and 25 per cent, respectively.
The shift underscored a structural change in how global and domestic investors were pricing Chinese assets, analysts said, rather than a simple short-term arbitrage opportunity. “This is in line with [Beijing’s] A+H policy introduced earlier, which encourages high-quality and promising mainland companies to list in Hong Kong,” said Kenny Tang Sing-hing, chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators.
The A+H framework encourages leading mainland companies, particularly in strategic sectors such as technology and advanced manufacturing, to tap offshore capital markets as part of a broader push to improve pricing efficiency and attract global investors.