Dual-listed banks trading lower in HK

Dual-listed mainland banks are trading at a discount in Hong Kong amid worries over loan quality and potential interest rate liberalization, which pose a threat to profit margins.

The eight mainland banks that are listed both in Hong Kong and Shanghai are seeing their H shares trade at lower prices than their A shares.

Analysts said the A-share prices of mainland banks will soon follow the trajectory of their H shares. Since the Hong Kong market has no capital controls, experts said it better reflects the opinion of global investors.