Ye Tan: Shanghai And Hong Kong Have Two Market Inequalities

Shanghai and Hong Kong opened in November 17th, which is a key step towards internationalization of the mainland stock market.

At present, the analysis of Shanghai and Hong Kong links is superficial. How much capital increase will be brought by Shanghai and Hong Kong through Hong Kong and Hong Kong?

Trading system and trading tools are reflected in T+0 and financing costs. It shows that two market traders are not treated fairly, and the essence is two market inequalities.

Hongkong and mainland investors have different investment conditions. There are various hedging risk tools in the T 0 of Hong Kong. Whether the Shanghai stock exchange can restore T+0 pactions is worth paying attention to. This measure will increase the volume of pactions on the Shanghai Stock Exchange, which is a strong stimulant in the short term, and is a stimulant for the stock market.

The Shanghai Stock Exchange has made positive statements.

In November 10th, the Shanghai Stock Exchange's Shanghai and Hong Kong press conference said that the revolving paction (also known as the "T 0" trading) mechanism has been the focus of the research and innovation, and the launch of Shanghai and Hong Kong Tong will undoubtedly accelerate the exploration of the mainland market in this field.

China's stock market has undergone fundamental changes, and it already has the conditions to restore "T 0".

From December 24, 1992 to December 31, 1994, the A share market had implemented the T 0 paction, which was cancelled because of too much speculation.

Now, to restore T 0 is not due to speculative decline, but in the market of index options, margin trading, Shanghai and Hong Kong through the implementation of T 1, which has been out of date and is obviously making some investors suffer.

There are not only T+0 in Hongkong market, but also a series of preferential behaviors of brokerages.

According to "Ming Pao" financial report, in November 10th, many securities firms in Hongkong couldn't wait to offer a discount. They were generally more free from banking than their bank counterparts.

There are 85% brokerages (margin trading) to customers.

Although banks have a shorter period of exemption, they use their own advantages to bind stock accounts and RMB deposit preferences. Customers have more than 20 to 30 points (1 yuan to 10000 points) discount when exchanging RMB.

Banks offer concessions on exchange rates and interest rates.

Bank of China Hongkong pointed out that in addition to the exemption of 3 months' Commission, new customers also introduced "RMB flexible and high interest time deposit" and exchanged RMB for A shares, with 30 points on the exchange rate.

Hang Seng Bank announced that from next week to the end of March next year, customers will buy A shares for an unlimited amount of time, and the annual interest rate for settlement accounts will be as high as 1.

CITIC Bank has an international exemption period of up to 6 months, while the RMB deposit interest rate of stock accounts is as high as 1.2.

Customers can enjoy RMB 20 discount for RMB exchange.

Hongkong customers do not deal with Commission, exchange rate interest rates can enjoy preferential, there are 8 free margin for free margin delivery.

At present, there are different conditions for the opening of accounts in Hong Kong stock exchanges. A listing broker in the West requires the sales department to strictly enforce the policy of opening the counter and asking customers to provide a margin of 1000 yuan to prevent overdraft of accounts. Only when the Hong Kong stocks are cancelled, can they be pferred out, and customers need to take part in the on-site test.

A broker in East China has a more flexible account opening policy, allowing online accounts to be opened, and there is no specific requirement for margin. The minimum commission can be up to 8/10000.

The broker is not very reassuring to customers, not only without concessions, but on the other hand.

In contrast, the annual interest rate of domestic investors financing is around 8.6%, and the average days of financing are about 15 days.

By the end of October, statistics show that the balance of financing in the Shanghai and Shenzhen two cities is only one step away from the 700 billion mark, and the interest rate paid on the 15 day is 2 billion 473 million 900 thousand.

The fees for Hong Kong stocks include brokerage fees, paction charges of 0.005% for bilateral charges, bilateral paction fees charged by 0.5 yuan, bilateral paction fees collected by 0.003%, investors' compensation fees for 0.002%, bilateral share fees collected by 0.002%, and bilateral stamp duty on 0.1% shares, etc., except for brokerage fees, the rest are fixed expenses, which are traded on the stock exchange.

The SAR government is obliged to collect it.

For each paction, only the fees charged by the regulatory authorities amount to 0.112% of the paction amount. If the brokerage fee of the Hongkong brokerage commission is 0.25%, the paction cost will be as high as 0.362%.

Brokerage may win customers, and commission may be preferential.

If the territory

Financing to buy Hong Kong stocks, plus commission costs, the average yield of at least 8.7% or more to make profits.

It is inevitable that Hong Kong stocks pass through the exchange rate risk. Although the best price is offered to investors, the risk always exists.

Investors can carry out stock trading, stock lending and guarantee short selling in Hongkong stock market, but domestic brokerages and banks will not offer similar concessions, and investors will have different starting conditions.

Only in the short term, Hongkong investors must strictly abide by the rules of the mainland.

The service war around Shanghai and Hong Kong has already begun. Large brokerages have gained more customers, and Chinese and southern fund companies have pushed the Shanghai and Hong Kong mutual funds during the year, and the client wars on the Internet are on the verge of breaking out. ICBC has become the "Hong Kong Stock Exchange" business settlement bank, and the Bank of China has been awarded the exclusive settlement bank qualification of Shanghai Stock Exchange.

These financial institutions can be big winners in the mainland of Hongkong.