Hong Kong Stocks and H-shares: Stop Confusing Them!

Key Point: Place of Registration Determines Trading Rules

📱 Three Telecom Company Cases

China Mobile = Red Chip Stock (registered in Hong Kong, 28% tax burden)
China Telecom = H-share (registered in Mainland China)
China Unicom = Complex Structure (A-shares ≠ Hong Kong shares 1:1)
🔑 Core Differences

H-shares: Registered in mainland China, dual market segregation, two independent pools with no cross-trading
Red Chip Stocks: Registered overseas, single market connectivity, 75% existing shareholders + 25% public shareholders in the same pool
💰 Tax Burden Differences

Red Chip Stocks (e.g., CNOOC): 28% (10% corporate tax + 20% personal tax)
H-shares (e.g., China Telecom): 20% (personal income tax only)
📊 Impact on A/H Premium

CNOOC: A-shares 2.99 billion (scarce), Hong Kong shares 44.54 billion (large volume), Hong Kong shares at about 70% discount
Ping An Insurance: Main market is A-shares, H-shares at a 75%-90% discount
💡 Investment Insights

H-shares: No need to worry about inflow of domestic chips
Red Chip Stocks: Beware of 75% existing shareholders' lock-up expiration pressure
H-shares = Stable Channel, Red Chip = Flexible Platform