ADR - H share arbitrage is real and brokers are making money off it. On low volume days, arbitrage trades can dictate the share price (like today).
Quote from a paper:
If there is no time issue, Chinese ADRs traded during HK market hours offer a live arbitrage opportunity as there is very little risk in such trading and the gap between the ADRs and underlying stock is minimal (Hsu and Wang 2008). If there is a spread between the perceived values in the two markets, arbitrage can be expected. If the ADR is trading at a value lower than what the underlying is in Hong Kong market, one can purchase the ADR and expect to make money as its value converges, and vice versa.
$BABA$ Bullish
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