(Bloomberg) -- Chinese stocks traded on the mainland are quoting at the biggest premium to Hong Kong-listed counterparts in a year as the nation’s state-backed funds snap up A-shares to boost market sentiment.

The Hang Seng Stock Connect China AH Premium Index, which tracks the price premium of A-shares to H-shares for companies listed in both markets, on Monday rose to the highest level since Nov. 7, 2022.

State-owned Central Huijin Investments in October said it plans to boost stakes in China’s Big Four banks over the next six months, and China Reform Holdings this month said its unit has bought an unidentified amount of ETF. 

Foreign investors’ sentiment toward Chinese A-shares soured as Moody’s Investors Service’s cut China’s credit outlook to negative, and downgraded its view on banks, as well as Alibaba Group Holding Ltd. and Tencent Holdings Ltd. 

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