CITIC Securities: Focus on the phase opportunity of A-share asset and Hong Kong stock revaluation brought by the wave of A+H dual listings.

According to a research report by CITIC Securities, starting in the fourth quarter of 2024, a large number of A-share listed companies will seek dual listings in both A and H markets, and this trend is continuously strengthening. In just the month of April 2025, the total number and market value of companies disclosing their plans to list on the Hong Kong stock market exceeded that of the first quarter of 2025. The wave of A-share companies listing on the Hong Kong stock market is expected to occur in the second half of 2025. Before the formal IPO, the company's stock price may remain flat due to tightened external communication. With the release of positive information after the Hong Kong IPO, the stock price and expectations may rise simultaneously. From a fundamental perspective, the significant discount of H-shares has increased the relative stock dividend returns of excellent companies, and the convergence of subsequent discount rates also provides room for returns. In addition, the leading companies planning dual listings in both A and H markets are scarce in the Hong Kong stock market and even in overseas capital markets. From a chip perspective, Hong Kong stock liquidity and valuation have been improving since September last year, and the number of tradable shares of A-share companies listed on the Hong Kong stock market is relatively limited. Coupled with the expectation of inclusion, the high-quality A-share assets may attract strong demand when listed in Hong Kong. It is recommended to pay attention to the phase opportunities for the reassessment of A-share assets in the Hong Kong stock market brought about by the wave of dual listings in A and H markets.