Thursday, January 13, 2022

Discount in China stocks listed in Hong Kong

 Many stocks of big companies in China are listed in Hong Kong and in Shanghai. The HK price is often at an attractive discount (of 25% to 80%) compared to the Shanghai price. See this webpage for the difference.

I have often been asked - why is there a difference in the prices? Is it possible to buy the stock in HK and sell them in Shanghai? This is called arbitrage.

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