Mainland Chinese investors piling into Hong Kong H-shares while A-shares lag

Singapore

SHARES of Chinese companies listed in Hong Kong are among the top performers in the world so far this year, easily returning more than the S&P, as Chinese investors pile into a market that was once the near-exclusive playground of foreign fund managers.

Worried by signs that China is tightening monetary policy, mainland investors are loading up on Hong Kong-listed Chinese firms, which are trading at hefty discounts to the shares of the same companies in Shanghai and Shenzhen.

Chinese are also pouring funds into Hong Kong as a hedge against fears of further depreciation in the yuan. Most Hong Kong listings are denominated in the local dollar, which is pegged to th…