Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website
Subscribe CustomBlackClose

Belt & Road Weekly Subscription Form

download_pop

Research ReportCustomBlackClose

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

My Favorite China's Brands
Industry

H-shares to be more attractive in 2021, institutions

December 30, 2020


Abstract : China's H-shares are forecasted to be more attractive in 2021, reported Xinhua Finance citing a research report of China Merchants Securities (CMS) Wednesday.

1230-1.png

BEIJING, Dec. 30 (Xinhua) -- China's H-shares are forecasted to be more attractive in 2021, reported Xinhua Finance citing a research report of China Merchants Securities (CMS) Wednesday.

The CMS report said that H-shares may benefit more from the likely global capital inflow as an expected weak U.S. dollar cycle and the ongoing economic recovery in China will boost Renminbi (RMB)-denominated assets.

Meanwhile, the second listing of Chinese concept stocks in Hong Kong will further improve the value of Hong Kong-listed stocks and the value of H-shares is currently undervalued compared with global markets, with certain industries also structurally undervalued.

Under such circumstances, H-share market is likely to continue to attract more fund inflows in 2021. 

By far, publicly-offered funds have kept adding their holdings of H-shares and more and more H-shares became stocks heavily invested by publicly-offered funds.

Currently, H-shares and target H-shares under the stock connect program between the Chinese mainland and Hong Kong remain relatively attractive towards insurance firms. 

Pang Ming, chief economist with China Renaissance Securities (Hong Kong) Limited, said that the future of H-shares market lies in new economy.

As more and more leading internet, sci-tech-driven and medical firms that represent the new direction of economy going public on Hong Kong market, H-shares are deemed attractive with relatively high value in the mid- and long run, added Pang.

Pursuant to the company's calculation, the proportion of market capitalization of new economy-related companies in Hong Kong stock market has grown to 45 percent from 33 percent in the past three years and is likely to rise to 55 percent or beyond in the following three to five years.

As a result, investors are anticipated to continue to favor new economy related component stocks on the Hong Kong market, added Pang. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)

Scan the QR code and push it to your mobile phone

Keyword: A-share 2021 China H-share market

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to [email protected] and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial

Ask Us A Question belt & road login close

If you have any questions, please enter them in the box below.

Identifying code Reload

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial