Hongkong'S First Single RMB IPO Starts.

In April 11th, the Huixian Industry Trust Fund (hereinafter referred to as Huixian housing) was launched on sale, the first in Hongkong.

According to Huixian housing IPO exclusive financial adviser, CITIC

The expected annual yield is 4% to 4.26%, 29 days on the main board of Hongkong stock exchange.

As a real estate trust fund, the sale of Huixian housing has aroused great concern in the market because its fund units will be priced and traded in Renminbi.

Huixian Fang's letter of sale shows that the selling price of Huixian Fang is about 5.24 yuan to 5.58 yuan per unit, 1000 yuan per hand, joint service charge and admission fee of 5636.25 yuan.

A total of 2 billion units were offered for sale at a maximum selling price of $11 billion 160 million.

As of June 30th this year, the forecast yield was calculated at a price ranging from 4% to 4.26%.

It is understood that Huixian housing to raise funds will invest in the Hongkong market, will not return to the mainland temporarily.

The Hongkong real estate investment trust (REIT) is one of the collective investment schemes, which provides regular income for investors by concentrating on real estate projects that can generate income.

The real estate investment trusts approved and traded in Hongkong must be listed on the stock exchange. Investors can buy and sell real estate trust funds on exchanges.

Huixian room will be sold on the 19 th, and on the 29 day, it will start trading on the main board of Hongkong stock exchange.

As a joint venture partner of Beijing Oriental Plaza, Huixian housing has the right to distribute the proceeds from Beijing Oriental Plaza in the next 38 years.

Hongkong banks offer preferential measures to seize the opportunities for RMB business.

According to the information of the Hongkong monetary authority, in February, RMB deposits in Hongkong exceeded 400 billion yuan, so before the sale of Huixian housing, some market participants predicted that there might be panic buying, and the banks concerned were ready to prepare for it.

HSBC said that Huixian's first day stock offering and its 30 outlets will set up 150 service ambassadors.

If the subscription is warm, if the investor queues outside the door early, the ticket collector will open the door early.

On the afternoon of 11 July, a correspondent bank on Hong Kong Island did not see the queuing up.

A subscribed citizen told reporters that the potential for the appreciation of the RMB and the stability of the mainland property market were the main concern.

There are also retail investors who believe that the dividend payout rate of the fund is not high and will only be held in short term.

Ye Dequan, a non-executive director of Huixian trust, explains that some banks do not have queues outside, perhaps because some investors subscribe online.

In order to make use of the opportunity to sell the first single RMB stock and seize the opportunity of RMB business, many banks and securities firms in Hongkong have offered preferential measures.

HSBC stipulates that all customers who subscribe Huixian to the bank are free of charge. The minimum brokerage commission is RMB 50 yuan and the minimum standard commission is RMB 100 yuan before buying RMB shares before May 31st this year.

Hang Seng Bank also stipulates that individual customers subscribe to Huixian, which is reduced from 85 yuan to 38 yuan. No matter whether or not the rights issue is granted, customers can buy Huixian from April 29th to May 4th without any commission.

When Hongkong has more than 1 trillion yuan in Renminbi deposits, Renminbi stocks will start to take shape.

Morgan, vice chairman of Investment Bank Asia, described Fang Fang as a landmark event.

He believes that this marks a step forward for Hongkong as an offshore center for RMB.

The original investment products of RMB in Hongkong are fixed income, such as bonds, loans and so on, the issuance of Renminbi denominated shares is an important step towards equity investment.

Fang Fang pointed out that Hongkong needs to solve two problems in building RMB offshore center: first, there must be enough money in the RMB pool, and the two is to have suitable investment products and channels.

Without investment channels, the money will soon flow out.

In the Hongkong market, the original RMB bonds and loans are very single products. Now, some real estate enterprises and manufacturing enterprises have begun issuing bonds, with various investments, different risks, and richer investment choices.

Some analysts believe that the size of the renminbi pool in Hongkong is still not large enough. Therefore, the initial profit of the RMB IPO is not obvious, and the market capital is still insufficient. It is estimated that the initial paction will not be too active.

Fang Fang believes that the performance of the two tier market is not necessarily related to whether or not it is denominated in Renminbi, which depends on the investment value of the product itself.

Therefore, we should not judge whether the paction is active or not. We should consider this pioneering significance.

Hongkong's RMB stock is a key link in the progress of RMB IPO.

The Hongkong monetary authority data show that as at the end of February this year, RMB deposits in Hong Kong amounted to 407 billion 700 million yuan.

The Deutsche Bank report points out that when Hongkong has RMB deposits above 1 trillion yuan, the renminbi stocks will take shape.

Fang Fang believes that Huixian house is closer to bonds in stocks and has some properties of bonds.

He predicted that, according to the general concept of the mainland, in the full sense of RMB stocks, if the RMB pool is large enough, it will be expected to appear in Hong Kong in the coming year.

Mr. Huang, an analyst at Bank of China in Hongkong, said that the renminbi business could have wider uses in Hong Kong.

At present, the interest rate of RMB deposits in Hongkong is not high, and the choice of buying bonds is not very large. If we open the RMB stock market, we will greatly promote the development of RMB overseas business and offshore center as long as we operate reasonably and improve the regulation.

"People in Hongkong generally see the broad prospects for the development of the renminbi, and recognize that the renminbi will become an important position in the future world currency. We all hope to invest more energy in the RMB business.

If the appreciation of the stock market and the appreciation of the RMB can be superimposed, the dividends to the public will be even more substantial.

Mr. Huang said.