State-owned major banks' H-shares hit a record high, with funds from the southbound and state-backed backgrounds continuing to 'sweep up' assets.

Since the beginning of this year, the stock prices of major banks such as Construction Bank, Industrial and Commercial Bank, and Bank of China have shown strong momentum, not only outperforming the market, but also collectively reaching new highs in mid-April. In contrast, the stock prices of their A-shares have recently performed weaker than their H-shares. As of the close of trading on April 17th, the AH-share premium index was reported at 118.38 points. In addition, the discount rate of state-owned large bank H-shares is usually higher than the market average. Based on this calculation, the discount compared to A-shares is around 15% to 25%. Since last year, mainland representatives and funds with state-owned backgrounds have been persistently "sweeping" the market. Taking Postal Savings Bank as an example, long-term capital representing domestic funds such as Ping An Life Insurance has increased their holdings of Postal Savings Bank H-shares several times, triggering three consecutive takeover attempts, demonstrating a firm stance on continued "sweeping" and long-term allocation. At the same time, Southbound funds are also accelerating their inflow. Data shows that in mid-April trading days, the daily net inflow of major funds into Bank of China H-shares reached 191 million Hong Kong dollars.