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HK-Shanghai stock gaps to disappear

Morgan Stanley analyst says creation of a 'one-China' market will lead to price convergence

Mulling over data: While the Shanghai Composite Index has rebounded 11 per cent since mid-March on speculation that government stimulus will revive growth in the world's second-largest economy, the gauge has lagged behind a 20 per cent surge in the Hang Seng China Enterprises Index of H shares. - PHOTO: BLOOMBERG

[SHANGHAI] THE days of paying different prices for the same stock in Hong Kong and Shanghai are numbered, according to Morgan Stanley. Valuation gaps between dual-listed shares will disappear as an exchange link between the two cities leads to the creation of a "one-China" market, Jonathan