Ah share premium rate is still near five months low

-Capital Securities Cao Yuan June 4 The Hang Seng Ah Stock Premium index was closed at 125.78, about 5 points higher than June 1, but still in the near five-month low since January 10, 2009. Since mid-February, H-shares have been significantly stronger than a shares, pulling the AH-shares premium rate has been lower.　　China Ping An and other 6 stocks AH stock price upside down. Ah share premium only 26% this year, the Hang Seng Ah Premium Index shows the first Yang after the trend, the beginning of the lowest value of 112.98 points. Since then, with the A-share market gradually warming, ah Premium index has climbed to 163.64 points (February 17, 2009).　　The Hong Kong stock market also began to rebound sharply in early March 09, after which the AH Premium index entered a choppy channel, the lowest in the last 5 months.　　As of June 4, 2009, the Hang Seng Ah Premium index was 125.78 points, indicating that the weighted average premium for a shares with H-shares today is about 26% per cent for their H shares. Stocks, as of yesterday's close, 57 of shares with H shares, AH premium rate of more than 100% of the stock has 21, of which the St Luo Bo's AH premium rate is the highest, Tatsu 535%;s, the north, the Nanjing Panda shares of the AH premium rate of more than 300%.　　In addition, China Ping ' an, conch cement, China Life, China Railway Construction, Anshan iron and steel shares and the shares of the 6 shares of AH shares upside down, of which China Ping ' an and conch cement the largest discount rate, discount rates of 11.55% and 11.53% respectively. H shares strong pull low premium rate AH stock premium rate is falling, mainly because H-shares performance significantly stronger than a shares. The Shanghai Composite Index has risen 32.86% per cent since March 2009, while Hong Kong's Hang Seng index rose 44.42% per cent over the same period.　　57 AH shares, a shares of the weighted average increase of 28.37%, and the same period, the weighted average increase of H-shares 57.64%,h shares of the weighted average rose significantly more than a share of the weighted average gain. Historically, the average premium of a shares over H shares has been about 32% per cent since the beginning of 2006. The current 26% AH premium rate is slightly below the historical average. The recent influx of international hot money into the Hong Kong market and the continued opening of QDII funds in the Hong Kong market may be a direct cause of the current AH premium lower.　　In terms of fundamentals and news, the Better-than-expected performance of the US Consumer Information index and the favorable factors such as a short-term relaunch of the QDII program in the mainland have been the driving force behind the recent good performance of the Hong Kong stock market. In addition, we notice the appearance of AH upside down in the stock, China Ping ' an, conch cement, China Life, Anshan Iron and steel shares of 4 shares of the circulation of a shares than its circulation of H-shares. Of the 52 stocks with AH's premium rate of more than 0, there are 29 shares in the circulation of a shares less than their circulating H shares.　　This shows that the size of the circulation disk of AH shares in different markets affects its market liquidity, which in turn affects the AH premium of some stocks. Premium rate exists rebound may ah premium is long-term depositIn, mainly from the mainland capital market and Hong Kong capital market maturity differences, market liquidity, equity risk premium level differences between the two factors. The AH Premium index edged up slightly for 4 consecutive trading days this week, showing a certain bounce-back feature.　　The Shanghai Composite Index has gained 5.1% per cent this week, while the Hang Seng index rose 1.83% and Hong Kong's weak performance in the A-share market has led to a continued rise in the AH premium this week. At present, the valuation of a-share market is basically in a reasonable range, along with a a-share investor's expectation of a steady recovery of domestic economy, the short-term valuation of a-share market is likely to continue to increase slightly. If the early positive factors have made the valuation of Hong Kong stocks in place, the AH Premium index is likely to continue to rise in the short term. But it does not rule out the possibility that international hot money and QDII funds will continue to be sought after by the Hong Kong stock market. In the long run, AH Premium will remain in place for a long time and fluctuate within a reasonable range.