News out today in Asia. PETROCHINA (00857.HK) -0.090 (-1.741%) PTR (601857.SH) was in discussions on the disposal of interests in natural gas pipeline in the mainland with an estimated total value of approximately US$47 billion, Reuters cited an information.
The announcement of such a massive deal shall be very positive for PTR!!!.
if this is the case, then the question becomes why there is such a big mismatch between Shanghai price and Hong Kong price? I have seen a difference of some 10-20%, not 50% difference in the case of PTR.
If there is such a big difference, the Chinese government and the two exchanges should investigate why. Does this create opportunities for money landering?
Suppoese someone with big deep pocket can theorically buy shares in Hong Kong, then sell the very same shares in China, making some 50% gains easily and daily? I have serious problems with this!!!!