I am interested in investing in the Industrial and Commercial Bank of China (ICBC), which is listed both on the Shanghai and Hong Kong stock markets.
Since I only can trade in the Hong Kong stock market, I would like to know why there is a big difference in the current price and historical prices for the same stock on two different stock exchanges:
- http://www.google.com/finance?q=SHA:601398 (Shanghai — last price is 4.04 Chinese yuan)
- http://www.google.com/finance?q=HKG%3A1398 (Hong Kong — last price is 5.93 Hong Kong dollars)
Is 1 ICBC share on the Shanghai stock exchange equivalent to 1 share on the Hong Kong stock exchange?
If not, why there is a huge difference in their current price? Their historical prices look different too.
At the moment:
- 4.04 Chinese yuan = 4.70 Hong Kong dollars
- 5.00 Chinese yuan = 5.93 Hong Kong dollars
ICBC's Shanghai stock price is now near its lowest (its highest is around ¥8). ICBC's Hong Kong stock price is now near its highest (its highest is around $7).