AH premium index hits a new low for the year. Securities firms predict that the center of AH premium will trend downward.

On July 18, the Hang Seng AH premium index continued to decline, touching 126.23 points at one point during the day, setting a new low for the year. It is worth noting that the AH premium rate of individual stocks has also been continuously narrowing. China Securities believes that the listing of high-quality A-share companies in Hong Kong has opened up the downward space for the premium index, increased the liquidity of Hong Kong stocks, reduced the discount of H-shares due to insufficient liquidity, and narrowed the valuation gap between the two places. In addition, several H-shares in this sector have received increased holdings from foreign institutional investors, with significant gains, further narrowing the gap in AH valuation. Guotai Junan Securities believes that the trend of the AH premium center is downward, and the stereotype of Hong Kong stocks trading at a discount is being broken. Currently, the AH premium is only returning to near historical averages, and with deep changes in the underlying factors that support long-term premiums, the AH premium center may trend downward, and the long-term discount of Hong Kong stocks is expected to gradually change.