SHHKSI Outperforms by Exploiting A–H Share Price Gaps
The Hang Seng CSI Shanghai-Hong Kong AH Smart Index ("SHHKSI") has outperformed the S&P 500 $S&P 500(.SPX)$ , Hang Seng Index $HSI(HSI)$ , and CSI 300 Index in the last 1yr and 2yrs.
And it didn’t do that bad on a 5yr horizon returning 56% while the HSI and CSI300 were basically flat. Yet, hardly anyone knows about this.
In order to reflect an arbitrage return from share class switches under the Shanghai-Hong Kong Stock Connect programme, i.e. switching between share classes based on the relative prices, SHHKSI is developed to reflect an investment strategy which is
comprised of the AH companies with dual listings of A-shares on Shanghai Stock Exchange ("SSE") and H-shares on Hong Kong Exchanges and Clearing Limited ("HKEX"). The intent of the Index is capturing excess returns via the price premium between Mainland A-shares and Hong Kong-listed H-shares.
Basically, asset managers in China who have been offering products that track the SSHKSI have done very well for their clients despite the weak main index performance. The A-H share disparity has been a gold mine for those who know how to take advantage of it.
Image
Image
For whom haven't open CBA can know more from below:
🏦 Open a CBA today and enjoy privileges of up to SGD 20,000 in trading limit with 0 commission. Trade SG, HK, US stocks as well as ETFs unlimitedly!
Find out more here：
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
