Exploring A-H Share Price Differences: Arbitrage Opportunities and Behavioural Finance Insights

Yan Chen

2025

Abstract

The price difference between the H-shares and the A-shares has been a source of concern for policymakers and investors because of structural, investor, and regulatory divergences. This study aims to measure the gap in the price of the H-shares and the A-shares, analyse cross-market arbitrage opportunities, and identify the determinants that cause the gaps in prices. Based on historical data for Xinhua Pharmaceutical and CanSino Biologics, this research investigates trends and determinants of the price gap between both markets. The findings reveal that specific findings, one finds that premiums on the A-shares are driven by liquidity and the nature of the retail investors, while the prices on the H-shares reflects tighter regulation and the rigorousness of the institutions as investors. This study adds to the findings that investors must make the best out of cross-market investments and reduce price gap-related risks. Based on these findings, authorities should focus on to the authorities for enhanced coordination in the markets, information transparency, and convergence of the prices on the A-shares and the H-shares towards an integrated and efficient capital market.

Paper Citation

in Harvard Style

Chen Y. (2025). Exploring A-H Share Price Differences: Arbitrage Opportunities and Behavioural Finance Insights. In Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML; ISBN 978-989-758-775-7, SciTePress, pages 44-48. DOI: 10.5220/0013832400004719

in Bibtex Style

@conference{iceml25,
author={Yan Chen},
title={Exploring A-H Share Price Differences: Arbitrage Opportunities and Behavioural Finance Insights},
booktitle={Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML},
year={2025},
pages={44-48},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013832400004719},
isbn={978-989-758-775-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML
TI - Exploring A-H Share Price Differences: Arbitrage Opportunities and Behavioural Finance Insights
SN - 978-989-758-775-7
AU - Chen Y.
PY - 2025
SP - 44
EP - 48
DO - 10.5220/0013832400004719
PB - SciTePress