Top 5 sectors that will ride on top of 'through train'

2. Undervalued blue-chips

The trade link is expected to draw investment into blue-chip A shares, as institutional investors, taking up about 61.2 transaction volume in Hong Kong, generally show a preference for undervalued high-dividend stocks, according to Securities Daily.

In terms of valuation, 47 stocks eligible in the program have broke the net value, with 15 traded below 0.8 times of their book value, said the News on Oct 25. For example, Baoshan Steel, Wuhan Steel and Bank of Communication were traded at 0.63, 0.66 and 0.74 times of P/B respectively.

Fourteen out of 568 eligible shares under the plan that broke the net value have a three-year record of dividend payout higher than one-year deposit rate.

Investors track stocks at a securities company in Qingdao, Shandong province, Apr 8, 2014. [Photo/IC]