Impact of A-share Companies Issuing H-shares on Investors and A Detailed Analysis of Xingyu Co., Ltd.'s H-share Listing

1. Valuation Differences and Premium/Discount Logic
   : There has been a long-standing phenomenon of “same shares, different prices” between A-shares and H-shares, mainly due to differences in pricing mechanisms, liquidity, and investor structures between onshore and offshore markets. Historical data shows that the onshore A-share market usually enjoys a higher valuation center due to stronger policy coordination and greater liquidity, leading to H-shares often trading at a discount (the AH premium rate usually fluctuates above 100%) [1]. This means that investors need to pay attention to exchange rates, taxes (such as Hong Kong stock dividend tax), and long-term trends when allocating assets between A-shares and H-shares.

2. Potential Improvement in Valuation Path from H-share Listing
   : As more high-quality A-share enterprises issue H-shares through the “small-scale IPO + steady pricing” method, the Hong Kong stock market gradually absorbs international capital, and the connectivity mechanism continues to optimize. Some industry leaders have obtained valuations in the Hong Kong market that are close to or even higher than those in the A-share market [3]. This provides domestic investors with a “cost-controllable overseas premium opportunity” and also promotes A-share companies to move closer to the international market in terms of valuation transparency.

3. Liquidity and Expansion of Investor Structure
   : Listing H-shares pushes A-share companies to global investors (including institutions, sovereign funds, international ETFs, etc.), increases the company’s overall free float size, and helps improve the company’s trading activity and volatility hedging capabilities in the international market [3]. Especially for overseas funds that focus on dividends and stable returns, the H-share structure is more familiar, which is conducive to long-term locking of institutional investors.

4. Risks and Secondary Market Adjustments
   : In the early stage of H-shares, A-share investors may worry about the convergence of valuation premiums due to price discounts. If the H-share issuance price is too low or the scale is too large, it may trigger an immediate correction in A-shares. Enterprises usually alleviate this contradiction through standardized governance (such as setting repurchase clauses and supporting A-share locks) [1]. In addition, the Hong Kong stock market is still conservative in valuing small and medium-sized enterprises, and information disclosure capabilities and overseas adaptation capabilities have also become risk points.

1. Fundamentals and Valuation Positioning
   : As of December 30, 2025, Xingyu Co., Ltd.'s A-share market capitalization is approximately RMB 35.22 billion, TTM P/E ratio is about 22.44 times, ROE is 14.8%, and the current ratio remains around 2.0, indicating solid fundamentals [0]. Its stock price has been in a narrow sideways fluctuation range over the past year (support at about RMB 122.9, resistance at about RMB 125.3), and no clear trend has been formed, but the leverage risk is low, with a Beta value of only 0.46, which has defensive attributes [0].

2. Potential Promotion of Valuation by H-share Issuance
   :
   • International Pricing Anchor and Convergence of AH Valuation Differences
     : With the help of the valuation center of the Hong Kong stock market, Xingyu Co., Ltd. can expect to obtain a valuation in the H-share market that is close to that of the A-share market (if the H-share pricing refers to A-shares, the current valuation will not expand immediately, but in the long term, PEG can be improved by attracting international funds and strengthening brand awareness) [2].
   • Premium/Discount Mechanism
     : If the H-share issuance price is reasonable and the subsequent cumulative trading in the F-share market (Hong Kong stocks in the form of “foreign shares”) is active, it may pull up the overall A+H portfolio valuation. Especially against the background of the gradual decline of the AH premium, listed companies have a better chance to achieve “valuation repricing” [1][3].

3. Liquidity Improvement
   :
   • Cross-border Capital Allocation
     : After listing H-shares, the company will enter the Hong Kong stock connectivity investor pool (especially at a time when the connectivity mechanism continues to deepen and international funds prefer high-quality “old economy” assets), which helps increase the proportion of foreign holdings and trading volume, thereby driving the narrowing of A-share premiums and improving overall liquidity [3].
   • Fundraising Planning and Capital Market Linkage
     : Xingyu Co., Ltd. plans to convert to an “overseas fundraising joint-stock company” and clarify the use of H-share fundraising funds, reflecting its strategic intention to actively use overseas markets to supplement long-term funds and optimize overseas layout, which helps to enhance investors’ confidence in its cross-border growth path [2].

4. Key Opportunities and Risks from the Investor’s Perspective
   :
   • Opportunities
     : Attracting international buyers through the H-share platform can obtain more stable long-term funds, and at the same time enhance brand influence and cross-border financing capabilities through dual listing.
   • Risks
     : If the H-share issuance price is lower than that of A-shares, it may trigger short-term A-share capital reallocation; the Hong Kong stock market is still cautious about the valuation of the manufacturing industry, and it depends on the company’s continuous improvement in information disclosure and governance; cross-border macro risks (exchange rates, interest rates) will also affect the total valuation level.

5. Technical Analysis Supplement
   : Xingyu Co., Ltd. is currently in a “sideways fluctuation” range, MACD has not formed a clear golden cross, and KDJ shows a slight rise, indicating that the market is still waiting for new fundamental opportunities (such as capital inflows after the start of H-share listing) [0]. If the H-share listing event meets market expectations, it is expected to break the current resistance range and drive the formation of a new trend.

• Holding/Increasing Position Perspective
  : If you prefer growth + defensive A-shares, you can closely track the implementation of the H-share issuance plan (scale, issuance price, lock-up period) and the use of raised funds. After confirming that the impact of overseas pricing on A-share premiums is controllable, take the opportunity of capital market revaluation.
• Valuation Arbitrage Perspective
  : If there is a persistent price difference between H-shares and A-shares, it is recommended to pay attention to the first wave of liquidity performance and AH price difference changes after the H-share listing, and take the opportunity to use the pricing fluctuations in the Hong Kong stock market for arbitrage or hedging allocation.
• Key Risk Monitoring Points
  : Pay attention to the impact of H-share issuance on the short-term supply side of A-shares, the overall liquidity of the Hong Kong stock market (Hong Kong stock trading volume), and the progress of regulatory approval (including the review of the extraordinary shareholders’ meeting and feedback from the Hong Kong Stock Exchange/SFC).

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[0] Jinling AI Data
[1] Kaiyuan Securities Research Institute, “Current Hong Kong Stock Repair from the Perspective of AH Premium”
[2] National Business Daily, “Xingyu Co., Ltd.: Plans to Issue H-shares and List on the Hong Kong Stock Exchange”
[3] East Money, “Hong Kong Stock IPO Fundraising Races to Global First; ‘A+H’ Listing Boom Expected to Continue”