What are A/H shares
When applying for new shares in Hong Kong stocks and you encounter this kind of stock, how should you handle it? 🤔
In plain terms, A/H shares are the same company listed simultaneously on both the A-share and H-share markets.
A shares are traded on the mainland in RMB (Renminbi).
H shares are traded in Hong Kong, using Hong Kong dollars.
It’s still the same company, but the pricing conventions in the two markets are different.
So it’s common to see one price for A shares and another for H shares.
.. 𖥧 𖥧 𖧧 ˒˒. . 𖡼.𖤣𖥧 ⠜ . . 𖥧 𖥧 𖧧 ˒˒. . 𖡼.𖤣𖥧 ⠜. . 𖥧 𖥧 𖧧 ˒˒..
When applying for new shares in Hong Kong stocks that overlap with A/H shares, focus on one key point:
... Does H shares have a much lower price than A shares?
Let’s take a simple example.
If the A-shares convert to HK$100,
The H-share issue price is HK$70, so the H-shares are about 30% cheaper.
(That would feel more comfortable—at least it makes the market think, “Over here in Hong Kong, it really is cheaper.”)
But if the A-shares after conversion are HK$100,
If the H-share issue price is set at HK$85 or HK$90, then the discount is much smaller.
⚠️At this point, even if the company is good, it doesn’t necessarily mean the grey-market price will rise.
Because H-share investors would think: you’re not even cheap enough—why would I rush to抢?
.. 𖥧𖥧 𖧧 ˒˒. . 𖡼.𖤣𖥧 ⠜ . .
>>>> For example, Anker Innovation today.
Its A-share code is 300866. Previously, the A-share price was about RMB 115.47, which translates to roughly HK$133.55.
This time, the highest issue price for the Hong Kong shares is HK$99.32. One lot is 100 shares. The entry fee is about HK$10,032 per lot.
Then the comparison becomes very clear:
After conversion, the A-shares are about HK$133.55.
The highest H-share issue price is HK$99.32.
The difference in the middle is 34.23 Hong Kong dollars.
The H-shares are about 25.63% cheaper than the A-shares.
So Anker Innovation isn’t completely without a discount—it is indeed cheaper than the A-shares.
But the problem is, this discount isn’t particularly dramatic. So after thinking it over again and again, I still decided not to apply.
I don’t think there’s really anything major wrong with the company itself. The Anker brand has strong recognition overseas, and its businesses—charging, energy storage, and smart devices—are real businesses, not just pure concepts.
>>>> If an A+H stock is 30%, 40% cheaper in the H-share market than in the A-share market, I’d feel more comfortable with subscribing to the new issue.
So going forward, when you encounter AH shares, just use this method to look at them:
If the H-shares are more than 30% cheaper than the A-shares, then you can take a serious look.
About 20% cheaper—lightly participate if you want to.
About 10% cheaper—then you need to be cautious.
If there’s no discount, and it’s even more expensive than the A-shares, then basically don’t touch it.
Anker Innovation falls into the middle tier: the company is good, and the H-shares have a discount, but it’s not very steep.
You can participate, but if there are other choices, you can simply choose those instead.
Personal thoughts on subscribing to new issues—for reference only and not investment advice. DYOR.