- At current prices, the German-listed shares of Haier Smart Home trade at a ~48% discount to the otherwise-identical HK listed shares. This is by far the widest discount of its kind in the world - assuming the instruments aren't fungible.
- At a more typical 10-15% discount, the stock has 50-60% upside.
- The shares may actually become fungible in the mid-term - if this happens the gap would close completely.
- This opportunity exists because Haier only relisted in HK a couple of weeks ago; because (until recently) the sell-side didn't know about it; and because the German listing was a legacy failed experiment that no one paid attention to (until recently).
- Haier's parent company has announced a massive share purchase program, enough to acquire ~50% of all German shares out - should they execute, the discount will obviously close rapidly.
For further details see:
Haier Smart Home German-Listed Shares: ~50-80% Near-Term Upside As Massive Discount To HK Line Closes