Zheng Quan Shi Bao·2025-06-12 14:23Core Viewpoint - The Hang Seng Stock Connect AH Premium Index has reached a five-year low, indicating a narrowing premium of A-shares compared to H-shares, reflecting a convergence in valuation differences between the two markets [1][2][5]. Group 1: AH Premium Index Performance - The Hang Seng Stock Connect AH Premium Index hit a low of 126.91 points on June 12, marking a new five-year low [1][2]. - The index has experienced a cumulative decline of approximately 10% year-to-date, following a period of fluctuations [2]. - The index has been below 100 points in the past, indicating a time when A-shares traded at a discount to H-shares, but since 2015, A-shares have generally traded at a premium [4]. Group 2: Market Comparison - Year-to-date performance shows that the Hong Kong market indices have outperformed A-share indices, with the Hang Seng Index up 19.82%, while the Shanghai Composite Index has only increased by 1.52% [5]. - The Shenzhen Component Index has decreased by 1.73%, and the ChiNext Index has dropped by 3.48% [5]. Group 3: Individual Stock Analysis - Among 155 companies analyzed, over 150 still show a premium of A-shares over H-shares, with 145 companies having a premium rate exceeding 10% [7]. - Notable exceptions include Ningde Times, WuXi AppTec, and China Merchants Bank, which are trading at a discount [8]. - Some companies, such as Weichai Power and Zijin Mining, have seen their A-share and H-share price differences significantly narrow, with Weichai Power's A-share and H-share price difference reduced to within 5% [8]. Group 4: Market Dynamics - The influx of southbound capital has improved liquidity and enhanced marginal pricing power in the Hong Kong market [9]. - The listing of more quality enterprises in Hong Kong is expected to attract additional capital and address structural issues in the Hong Kong market [9].