Facing The International "Big Crocodile" Stock Investors Odds Geometry?

Overseas investors who have been struggling to find direct access to China's capital market will finally have a "Carnival".

After 7 months of excitement and anxiety, 300 billion yuan of overseas capital and 80 million Chinese investors finally arrived at the moment of dust settled: Shanghai and Hong Kong will officially start in November 17th.

Zhang Zongxin, a professor at the Financial Research Institute of Fudan University, said that over the years, the issue of overseas capital's greatest concern is how to make money into the mainland and enjoy the fruits of economic growth.

Shanghai and Hong Kong eventually opened a window for the opening of China's capital market.

In April 10, 2014, the joint announcement issued by the Hongkong securities and Futures Commission of the China Securities Regulatory Commission pointed out that in the mechanism design of "Shanghai and Hong Kong through", the total amount of RMB cross-border investment quota should be managed, and the daily amount should be set up to implement real time monitoring.

Among them, the total amount of Shanghai Stock pass is 300 billion yuan, with a daily quota of 13 billion yuan.

However, Lin Caiyi, chief economist of Guotai Junan, believes that the total amount is 300 billion yuan on the surface, but because of the continuous entry and withdrawal of funds, the funds actually mobilized will be far more than this figure.

Wang Sheng, chief strategist of Shenyin Wanguo, also pointed out that although the amount of Hongkong and Hong Kong pass is 300 billion yuan simply, considering the mutual recognition of mainland and Hongkong fund companies and the impact of A shares being included in the A index, the amount of funds will exceed 1 trillion yuan, which will have a huge impact on the entire A share market in China.

When sharing "feast", we must guard against risks.

Since July, A shares have been bullish, becoming the star of the global stock market.

In the case of continued downturn in macroeconomic data and no apparent improvement in corporate earnings, this round of growth driven by multiple positive expectations also includes investors' expectations for Shanghai and Hong Kong.

Domestic institutional investors generally believe that the blue chip valuation of A shares is generally lower than that of Hong Kong stocks. The opening of the Shanghai and Hong Kong links will benefit the valuation and repair of A shares blue chips.

Lin Cai Yi pointed out that although this process may not be accomplished overnight, the price of stocks listed on both sides is the same trend, which is an inevitable trend.

In fact, since September, the Hang Seng AH share premium index has risen from the lowest 88.72 points to the highest 101.74 points. Many A share investors have shared the "appetizing feast" between Shanghai and Hong Kong through this process.

Some investors expect that after the formal opening of Shanghai and Hong Kong, the 300 billion yuan is the influx of overseas capital, which can provide sufficient liquidity support for the further rise of A shares.

But experts also pointed out that opportunities always exist with risks.

As a matter of fact, Chinese investors are also facing the "turbulence" caused by the withdrawal of capital while sharing the capital feast brought about by the influx of overseas capital.

Lin Caiyi believes that the intervention of overseas capital will exacerbate the fluctuation of A shares to a certain extent, while the valuation of small cap stocks will also face greater pressure.

Wang Sheng pointed out that in accordance with the "Shanghai and Hong Kong Tong" implementation rules, capital inflow has a daily limit of 13 billion yuan, but there is no limit to the outflow.

The negative impact of the withdrawal of foreign capital on the stock market has to be prevented by investors.

How to protect shareholders' rights and interests through Shanghai and Hong Kong

Overseas capital is not a "philanthropist" and "Carnival" after how to deal with the possible impact, how to protect the rights and interests of shareholders is also a real problem we have to face.

Xi Junyang, vice president of the school of finance, Shanghai University of Finance and Economics, believes that compared with overseas institutional investors, our shareholders are not mature enough.

"In the specific investment operation, domestic

There is also a strong blindness and speculation.

Xi Junyang said.

Actually,

At the early stage of opening up, the market of Shanghai and Hong Kong could not be completely consistent in terms of trading time and price limits. There still existed some arbitrage space, and the hidden risks must be highly concerned by investors.

In addition, for the "indigenous" people of A shares, the investment vision should extend to the whole world.

Insiders pointed out that after the opening of the Shanghai and Hong Kong links, the correlation between A shares and the international market will be greatly improved. Joining the MSCI (Morgan Stanley Capital International) global index is almost a certainty.

Li Qiang, chief strategist of UBS Securities, Ltd.

After opening, some important global events, such as whether the Fed raises interest rates, has a much bigger impact on A shares than we see now.

"The research institutions of the A share market will not only study the domestic macro environment and micro subjects, but also have a global view to provide global services for domestic and international investors."

Lin Caiyi said.

Fei Fangyu, vice president of China Finance Research Institute of Shanghai Jiao Tong University, said: "regulators should also step up the system design, effectively deal with the market risks that overseas capital may bring, strengthen investor education, and protect the legitimate rights and interests of Chinese shareholders."