PE multiple is not only a reflection of earnings quality, earnings growth/cagr, etc.
It’s also an encouragement or discouragement for value creation.
If $1 of profit is worth 10x in HK and 50x in A-share, companies could be more encouraged to create more value for A-share shareholders.
The same rationale also applies to upstream or downstream players – PE multiple can influence whether revenue or profit should sit more or less in supplier or customer etc.