The gap between the share prices of Chinese companies that are listed in both Shanghai and Hong Kong neared its narrowest level in more than a year yesterday in a sign of increasing caution by mainland investors.
So-called A shares traded in Shanghai have traditionally sold at a wide premium to their H share counterparts traded in Hong Kong – averaging 40 per cent during the past two years.
But in recent weeks, the gap has shrunk to about 13 per cent.
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