Yi Xianrong: Is Shanghai And Hong Kong Ready To Start Domestic Investors?

"Shanghai and Hong Kong Tong" was officially opened today. The official launch of Shanghai Hong Kong Tong is an important milestone for the Hong Kong and Chinese stock market to move towards mutual accommodation. If the Shanghai and Hong Kong links are well functioning in the future, the pilot will be changed to full liberalization so that the two places can be freely circulated, which will create the second largest stock market in the world. It can be seen that the impact and role of "Shanghai and Hong Kong Tong" after opening are immeasurable.

Moreover, this great institutional reform has not only opened up its advantages, but even in the months since April 10th when it announced that Shanghai and Hong Kong began planning for the opening of the November 12th announcement, the bottom line is whether the Hongkong composite index or the Hang Seng Index has a rare rise. In particular, the Shanghai composite index has increased by 16.89% during this period, which has completely hit the plight of China's A shares for a long period of 7 years. It can be said that with the opening of Shanghai and Hong Kong this year, the stock market in both places is heading for new prosperity. At the same time, it can also bring new investment opportunities to domestic investors.

However, for Chinese investors, do you know whether you are ready to enter Hongkong market with the help of Shanghai and Hong Kong? Because the market behavior rules, the concept and system of the rule of law, the structure of investors in the market, the operation mechanism of the market, and the rules of the trading system of Hongkong stock market are quite different from those in China. Therefore, if domestic investors want to enter the Hongkong market, they will have to know themselves and win the battle. Otherwise, even if there are the best investment opportunities, if they are not acclimatized, many opportunities in the Hongkong market will be lost from their hands, or even lead to the risk of personal investment.

For example, the Hongkong stock market dominates financial, energy and Telecommunications activities, and the more distinctive behaviors are Internet, gambling and some consumer electronics. Hongkong's stock market is dominated by investment from overseas investors and institutions, which is quite different from that of the A share market in the domestic market, which accounts for more than 80% of the retail market.

Also, because the Hongkong stock market is a fully open international market, the market is sensitive to any small information in the international market. It not only pays close attention to the monetary policy of major countries and its impact on global capital markets, but also focuses on the impact of this impact on global capital flows, and will also pay attention to the risks that these risks may lead to. Therefore, the volatility of stock market in major economies, the rise and fall of international oil prices, the adjustment of exchange rate, the change of gold prices and the adjustment of international commodity prices are all closely watched by the market. Because any fluctuations in these areas may affect the ups and downs of the Hongkong stock market. This is quite different from the stock market. Because the A share market is an open market, which is not directly related to the capital flow in the international market, and thus is limited by the external market.

In terms of market mechanism, Hongkong stock market has a set of mature rules in terms of IPO, repurchase, issuance and rights issue, delisting system and so on. These are not only beneficial Listed company Financing is also conducive to protecting small and medium investors and reducing the interests of small and medium-sized investors. The domestic trading system of A shares is quite different from the Hongkong market in terms of spanaction time, price limit, margin trading and so on. Therefore, when domestic investors enter the Hongkong stock market, they must know clearly the trading rules, spanaction modes and spanaction time of Hongkong stock market. Instead of using the rules of trading in the domestic stock market, we should take the Hongkong market for granted.

And, because of Hongkong. financial market It is very developed and basically matched with Wall Street. Therefore, the Hongkong market is not only very prosperous in the market of structured products and derivatives, but also much more mature than the domestic market. Therefore, the restrictions on investors in Hongkong stock market are much smaller than those in the domestic market. The volatility of Hongkong stock market is high, but the turnover rate is relatively low, while most small stocks have a valuation discount than large ones. Because of the different market preferences, the small shares in the A share market are better than those in the stock market. Investors in Hongkong prefer the investment price of stocks, and the dividend payout rate of listed companies is higher. This is very different from the A share market.

At present two places equity market Another important phenomenon is that some domestic companies have issued shares in both places. A shares issued in the A share issue are called H-shares in the Hongkong market. Because the structure of two market investors, investor behavior, trading rules and stock valuation preferences are different, the price of AH shares of the same company is different. After the Shanghai and Hong Kong exchanges are estimated, the narrowing of the AH share price difference between the two places is also an opportunity for investors. However, the AH price reduction is based on which side, and investors should not be a cloud or cloud. Instead, they should check the analysis. Otherwise, the investment direction will not be the same.