Major State-Owned Banks' H Shares Hit New Highs as Southbound Capital and State-Backed Funds Continue to 'Scour'

Year-to-date, shares of major state-owned banks such as CCB, ICBC, and Bank of China have demonstrated robust performance in the H-share market, not only outperforming the broader market but also collectively reaching phased new highs in mid-April. In contrast, their A-share prices have recently underperformed relative to H shares. As of the close on April 17, the A-H share premium index was reported at 118.38 points. Furthermore, the discount for H shares of major state-owned banks typically exceeds the market average; based on this calculation, they generally trade at a discount of approximately 15% to 25% compared to A shares.

Since last year, southbound capital representing mainland investors and funds with state ownership backgrounds have continuously been "scouring" the market. Taking PSBC as an example, long-term domestic capital such as Ping An Life Insurance has repeatedly increased its holdings in PSBC's H shares, triggering three consecutive public announcements, demonstrating a firm commitment to continuous "scouring" and long-term allocation. Meanwhile, southbound capital is accelerating its inflow. Data shows that during trading days in mid-April, the net inflow of main capital into Bank of China's H shares reached HK$191 million on a single day. (Shanghai Securities News)