Chinese insurance companies are favouring equities listed in Hong Kong over those traded on mainland bourses this year, drawn by higher dividend yields, even when the shares are of the same company but with dual listings in Hong Kong and the mainland.
Since January, two-thirds of insurers' 18 investments resulting in stakes of above 5% have been in H-shares instead of A-shares, reported the business news site Yicai that had compiled and analysed the data. H-shares are shares of mainland Chinese companies listed in Hong Kong while A-shares are listed on the mainland.
Yicai reports that the situation is most likely due to lower stock prices in Hong Kong which result in higher dividend yields.
According to Huachuang Securities, dividend yields of H-shares can be nearly three times as high as those of A-shares, allowing insurers to access higher dividends.