Buy H-shares instead of A-shares: analysts

Singapore

AS China's A-share market on the Shanghai Stock Exchange remains red-hot, analysts are reminding investors not to ignore the relatively cheaper Chinese companies listed in Hong Kong, known as H-shares.

Credit Suisse head of China research Vincent Chan told clients in a Wednesday conference that he sees downsides to A-shares but upsides to H-shares.

Opportunities are in H-share banks and consumer discretionary companies like department stores, household appliances, footwear and auto firms, he said.

"From the low point to the high point, state banks are up by ... 10 to 15 per cent maximum (with dividend yields of 5-6 per cent) ... that kind of risk, I'm willing to take," he said.

Mr Chan's end-2015 target for the Shanghai Composite Index was 2,800 points. The index is now at around 3,300 points, up some 65 per cent from 2,000 points a y…