The valuation gap between mainland and Hong Kong-listed shares of dual-listed Chinese technology companies is narrowing, and in some cases, reversing. Global investors are re-rating the value of these companies, causing the pricing gap index to drop significantly.

A long-standing pricing gap between the mainland China-listed and Hong Kong shares of dual-listed companies has narrowed – and in some cases reversed – as global investors re-rate China’s technology companies. The Hang Seng AH Premium Index, a widely watched gauge of the valuation gap between dual-listed companies’ A shares trading on mainland exchanges and their H shares in Hong Kong, has remained below 120 in recent sessions, down sharply from a high of 157.89 in February 2024. The shift has.....