Shanghai has benefited much from the stock through-train program that marked its one-month anniversary on Wednesday.
China’s capital market has so far drawn 67.8 billion yuan (US$10.94 billion) of funds through the Shanghai-Hong Kong Stock Connect scheme, Hong Kong Economic Journal reported.
In comparison, fund flows from the mainland to Hong Kong amounted to just 8.8 billion yuan. It means a net 59 billion yuan of capital inflow to the mainland stock market, whose value expanded 4.19 trillion yuan over the past month.
The premium of A shares to H shares has widened further to 55.6 percent from 30 percent. As of Tuesday, investors trading A shares via the through-train pocketed 3.43 billion yuan of profit, with a yield of 12.6 percent in just a month, excluding a paper gain of 65 billion yuan on stocks in hand.
The figures are in contrast to the 36.39 million yuan of profit mainland investors made in the Hong Kong stock market.
Tencent Holdings (00700.HK) and gaming operators are not the most favored choices for mainland individual investors, who were seen going more for new-energy plays such as Hanergy Thin Film Power Group (00566.HK) and brokerages like Haitong Securities (06837.HK) and Citic Securities (06030.HK).
The variance in performance of Hong Kong and mainland stocks over the past one month points to the huge amount of liquidity in the mainland, said Hong Hao, chief equities strategist at Bank of Communications International. The recent volatility in oil price is another factor that might have dragged stock performance in Hong Kong, Hong said.
Overseas-listed exchange-traded funds that track the A-share markets may also be under pressure and face early redemption, Hong said.
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