CCB rises 1% to reduce shares or support valuations

Earlier announced that Bank of America to allocate HK $4.2 to 13.5 billion H-shares of the construction Bank, the H shares this morning to go low, the share price is only up 0.81% to 4.97 Hong Kong dollars, to run the trade, deal 279 million shares. Construction Bank A shares (601939-CN) now also rose 0.66% to 4.61 yuan. According to the data, the total took over the U.S. bank 2.768 billion shares of the Chinese life system (including related party), as early as last year four to the first quarter of this year, the cumulative reduction of the CCB A-shares nearly 146 million shares, accounting for the circulation of a shares of 1.62% , the price of reduction in the 3.7-4.3 yuan, with the previous purchase of H-share price difference is not big.　　Therefore, there are market comments that Guo Shou may be in the reduction of CCB after the construction of the value of CCB changes, and in turn from the H-share to find low-cost chips. At the same time, there is also the view that all the funds, including institutional funds, are aimed at the arbitrage space of a-share and H-shares market. Guo Shou group to buy shares on the one hand can be discounted to purchase the construction Bank H shares, on the other hand, can indirectly stabilize the CCB A shares, to maintain the current "victory". In addition, Chou can also hold the same stake at a low cost, with yesterday's closing price and the latest exchange rate, the CCB's AH shares premium rate of 5.48%. The view supports the valuation of CCB H shares.