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Chinese stocks trading at discount to Hong Kong stocks for first time since 2014

Sep 05, 2018

  • The CSI 300 Index is trading at a discount to the Hang Seng Index for the first time in nearly four years.  
  • Historically, the NTM P/E of CSI 300 trades at a 10.66% premium to the Hang Seng. 
  • The NTM P/Es of the two indices crossed on 06/29/18 for the first time since late 2014.
  • The premium of Hang Seng to CSI 300 went as high as 5.44% on 08/08/18, but the gap has since narrowed to 1.18% as of today's close.  
  • Investors already with exposure to Hong Kong and China may want to consider this change in valuations between the Hang Seng and CSI 300.  


Source: Bloomberg