By: Eddie Pong, Director, Research and Analytics
The Chinese equity market has enjoyed enormous growth over the last two decades. This growth is partly originated when China permitted its State Owned Enterprises (SOEs) to list on the Hong Kong Stock Exchange (HKEx) in 1992. Now, Chinese companies can choose to be listed on domestic exchanges (A-shares), the HKEx (H-shares) or both. If a company chooses to be dual-listed, what is the effect of the price differences in the foreign and domestic markets when the company is included in an index?