Hong Kong Dollar Hit A New High In The Year: European Capital Flight Into Hongkong

What is the difference between the European debt crisis and the past crises?

GF Securities (32.48, -0.30, -0.92%) (micro-blog) Hongkong sales department executives have been a bit busy recently.

In addition to the general agency product marketing, they also received several listing consultations.

One of them is a high-tech company based in Shanghai, and plans to launch a listing in Hongkong and New York.

The senior executive responded that he chose Hongkong as much as possible.

GF Securities is listed on the mainland of China.

Similar to the securities broker, China Merchants Securities (12.35, -0.17, -1.36%) (micro-blog) and Haitong international, which have more business in Hongkong, have received a lot of consultation recently.

More and more mainland companies are willing to come to Hongkong.

Previously, China Merchants Securities opened a warrant service in Hongkong, attracting some experts from foreign investment banks to plan derivatives.

Before 2007, the high tech companies in the mainland preferred the United States because they could get higher valuations and premiums there.

Now, everything seems to have changed.

Not only the mainland companies, but also the European and American companies are willing to choose to list in Hongkong. In a few days, the old luxury goods company COACH will issue the first HDR (Hongkong depositary securities) in Hongkong. It is said that listing in this way can evade many strict censorship.

At some point next year, Italy's Zegna will also be landing at the Hongkong stock exchange.

As of September 30th this year, about 113 overseas companies planned to go public in Hongkong. In October, when the European debt crisis worsened again, there were 8 more companies scheduled to visit Hongkong.

In fact, the entry of overseas companies

Bolker, a well-known US fund manager, recalls his thrilling investment experience in 1975, and his holdings of Lion shares surged from $0.07 in 1975 to $380 in 5 years.

Lion is a silver merchant.

In the subsequent Japanese bull market, the stock held by Qiu Yonghan, a Japanese stock god, has been rewarded more than 10 times.

Now, overseas investors' concern for Hongkong is directly reflected in the exchange rate.

Earlier this week, the Hong Kong dollar traded against the US dollar for nearly 12 months.

In the past, in South and Eastern Europe, there were also emerging markets that could attract the attention of European investors, such as Hungary and Poland, whose currencies had appreciated by more than 30% in one year, while in India, the ratio was 20%.

However, investors may realize that in the past October, the currencies of these countries fell only against the euro.

Li Zhengping, CEO of Financial Services Company in Hongkong, said that this phenomenon may mean that the funds from Europe did not choose the usual channels, but rather went directly to Hongkong, because the risk of these funds is very high.

In some ways, capital flowing into Hongkong is a good thing.

Over the past week, Hong Kong stocks have traded between 70 billion and 100 billion Hong Kong dollars a day.

According to the current average price earnings ratio, the number of shares traded is equivalent to the beginning of 2010.

At that time, it was a small upsurge in Hong Kong stocks' rebound.