Will Hong Kong become the main place for mainland new economy companies to list?


2020-01-16 07:42:17Beijing News Editor: Wang Jinyu
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Will Hong Kong become the main place for mainland new economy companies to list?

2020-01-16 07:42:17Beijing News

After Alibaba, the team returning to the Hong Kong stock market to dig for gold continued to grow in various rumors. Although NetEase, Ctrip and other companies did not comment on this, in the eyes of the outside world, this wave is unstoppable.

There are predictions that Alibaba, which has been listed in the US for five years, has moved to Hong Kong, China. Affected by this, from the beginning of this year, Chinese stocks will be listed in Hong Kong. As for why Chinese stock companies have shown great interest in returning to Hong Kong for a secondary listing, experts believe that the US technology industry has been relatively developed, and many Chinese stocks have previously gone to the US for financing. However, in recent years, a number of technology companies from the mainland have been listed in Hong Kong, and there are a number of local investors who understand them. The secondary listing in Hong Kong, if it can access the Shanghai-Shenzhen-Hong Kong Stock Connect in the future, will play a very important role in attracting mainland capital investment. In addition, the multiple listings of major Internet companies can not only broaden the company’s financing channels, but also hedge some macro risks. Zh

Lin Zijun:I think it is possible that the Hong Kong market will become more and more liquid as more and more Asian investors, especially Hong Kong investors, become aware of Mainland new economy companies. But the choice of Hong Kong still depends on the choice of the United States. Which side is cheaper, which side is easier to raise money, which side is easier, especially the restrictions on regulatory policies. With the opening of the Hong Kong Stock Exchange with different rights on the same shares and non-profit listing, the policy trend is relaxed. In conjunction with the opening of the Hong Kong Stock Connect channel, I believe that the future of Hong Kong listing will become more attractive.

Chen Kaifeng:It is unclear whether Hong Kong stocks can become the main destination for listing of new economic enterprises in the Mainland. After all, the Hong Kong market still has certain limitations in liquidity, and many stocks have very little trading volume.

The current structure of Hong Kong stocks is not very reasonable, and the proportion of financial companies is too high. In the past few years, the overall performance of Hong Kong stocks is not very good. The performance of the index is not as good as that of A shares or US stocks. It has a lot to do with this issue. The introduction of more new technology stocks is a very good thing for Hong Kong stocks, otherwise Hong Kong stocks may slowly fall behind, or even fall further and further. The Hong Kong market really needs these emerging companies to inject some vitality.


What new opportunities will there be for Mainland and Hong Kong investors?

Lin Zijun:On the one hand, some fund managers may not necessarily invest in such stocks or occupy a small proportion because of the time difference. Selecting a Hong Kong listing can basically cover the investment time cycle of most cities and countries in Asia, in other words, it provides opportunities and operability to participate in this type of stock.

For mainland investors, entering and leaving Hong Kong is much simpler than going to the United States. Account opening and transaction costs can be significantly reduced. If the Hong Kong Stock Connect is opened, it can directly solve the problem of entry and exit of funds and participate in the investment of companies related to the life of the mainland people . At the same time, companies such as Alibaba, JD.com, and Ctrip have rich derivatives in addition to stocks, so they can bring trading in the derivatives market to the Hong Kong Stock Exchange. For professional institutions, A variety of suitable hedging strategy tools can be found.

However, investors should note that the Hong Kong market is an institution-dominated market, and the risk of pure speculation is very high. You can refer to the positions and valuation analysis of professional institutions.

Chen Kaifeng:Mainland investors can participate in the investment of Hong Kong stocks if they have an account in Hong Kong. If these enterprises can join the Shanghai-Shenzhen-Hong Kong Stock Connect in the future, RMB investors in the Mainland can also participate in the form of Shanghai-Shenzhen-Hong Kong Stock Connect. This will definitely be more convenient for investors.

In addition, companies can pay dividends, share dividends, and buy back stocks to take measures that are friendly to investors. But in the final analysis, the core issue is to make good performance.

Cen Zhiyong:Chinese secondary stock companies have more options for investors when they come to Hong Kong for a secondary listing. I believe that Alibaba will have the opportunity to be included in the Hong Kong Stock Connect after half a year of listing, so that mainland investors will also have formal channels to invest in these technology companies from the Mainland.

Beijing News reporter Xu Nuo Liang Chen Lu Yifu Editor Wang Jinyu Proofreading Liu Yue

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