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Update to this story here. A spokesman says Mr. Tu was misquoted. Life makes a little more sense.
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After yesterday's article on a potential delay on the "through-train" plan allowing mainland Chinese to buy stocks in Hong Kong, we now get the following in the South China Morning Post:

"China may allow companies with shares traded in Hong Kong and the mainland to exchange their stocks, aiming to end the price difference between the two types of securities." says Mr. Tu Guangshao, a vice-chairman of the China Securities Regulatory Commission.

All the different proposals floated for narrowing the gap between H-shares in Hong Kong and A-shares in China are making our head spin at the Red Cat Journal. We now can assume that China's leaders may be concerned about an overheating A-share market.

An arbitrage mechanism to allow H-shares to be traded on mainland exchanges or to be converted into A-shares would probably be good for H-share prices in current market conditions just as the "through-train" program would also likely benefit H-shares.

The one problem with either plan is that in the process of cooling down the A-share market, the fires of an H-share bubble are being stoked. It is like fighting fire with fire. China's policy makers are probably searching for water now but cannot find it. This may be why we get one policy announced only to find delays or changes in the policy, followed by announcements of other new and different policies.

The other interesting factor in an H-share to A-share conversion mechanism is that the barrier between 'outside' and 'inside' China would be getting thinner and thinner. In the past, China's domestic share market was separated into A-shares and B-shares (for foreigners). A was A and B was B and "never the twain shall meet". Well, if this latest plan is implemented, it looks like H shares and A shares will at least be having coffee, even if they are not getting married yet.