A+H shares are shares listed both on or as H shares and on the Stock Exchange of Hong Kong.
There is usually A price gap between A shares and H shares.
If the price of A shares is lower than that of H shares, then A shares have valuation advantages.
If the price of A shares is higher than that of H shares, the valuation of A shares is suspected to be higher.
The issuance of A+H shares indicates that China’s capital market will further accelerate the pace of opening to foreign investment along with the process of RMB exchange rate liberalization, and the connection between Hong Kong market and mainland market will be closer.
In addition, the “H+A” equity issuance model can be said to be the most conducive to maximizing financing.
The desire of some listed companies to be able to choose “H+A” does not preclude their need to maximize financing in large part.