GF Securities: The elimination of liquidity discount is key to further narrowing the AH premium.

On March 24, Jin10 reported that the Guangfa Strategy Team released a research report to preliminarily discuss the AH premium, focusing on the overall and structural factors that determine the premium. The team found that from 2021 to the present, the AH premium rate is negatively correlated with the performance of the CSI 300, meaning that the convergence of the AH premium mainly occurs during the upward phase. Since 2021, the Hong Kong stock market has seen relatively increased Fluctuation, one speculation being that it may be related to the reversal of the relative Liquidity discount. Companies with higher dividend yield levels tend to have a more converged price difference between the two markets. This is because consistently high dividends have more buying and holding value, thus partially offsetting the Liquidity discount. The most direct factor for further convergence of the AH premium in the future still lies in the elimination of the Liquidity discount.