Shanghai And Hong Kong Or Shenzhen And Hong Kong Through The Opening Of Cheap Stocks In Hongkong Or Possible

As of January 22, 2016, in the 2015 annual notice, 15 A share companies pre disclosure 10 sent over 20 shares of high pfer scheme, and 16 A share companies pre disclosure 10 shares sent 15 shares or more of the high pfer scheme.

In the 25 year history of the A-share market, the listed companies used capital reserve fund to increase their capital stock by roughly three stages. The first stage (before 2007) was that every 10 shares were converted to 5 shares; in the second stage (after the end of the mad cow in 2007), every 10 shares were increased by 10 shares; in the third stage (after 2015 mad cow ended), the 10 shares were converted to 20 shares in A.

There are two main reasons for the large scale increase in capital stock: one is high priced small cap stocks, and the other two are low-priced junk stocks.

Initially, the large proportion of capital increase was mainly applied to the expansion needs of high growth small equity firms. Later, it gradually became an institutional lobbying or coercion of a large proportion of listed companies to increase their turnover. In recent years, a large proportion of the increase has become an important tool for rescuing high ranking quilt institutions and private placement buyers. Moreover, such a large proportion is still rising and there is no bottom line. Every 10 shares have increased by 30 shares. Perhaps 10 shares will be increased by 50 shares in the future. However, after the increase, they will become junk stocks.

In particular, 2014/2015 experienced the first lever of mad cow, a large number of subject stocks and small cap stocks were severely stuck in the cold mountain area, and some stocks were deeply stuck in 200 yuan, 300 yuan and 400 yuan. However, some funds, private equity and the makers themselves were forced to make use of the capital reserve fund to carry out a large proportion of additional capital stock. Therefore, A shares also increased the proportion of breaking through the history. For example, every 10 shares increased 15 shares, 10 shares increased 20 shares, 10 shares increased 25 shares, and even the highest historical record of 25 shares per 10 shares increased.

The logic behind high delivery is a cheap three love.

Because A shares are not allowed to split or reduce shares, in order to lower the share price and let the individual pay the bills, the listed companies only use the way of capital reserve to increase capital stock and lower the share price to attract retail investors to follow suit and let the organization or the dealer escape smoothly.

For example, the stock price of a new stock is now 100 yuan. If it does not send shares, it will be difficult for retail investors to pay the bill.

However, if the implementation of every 10 shares to send 20 shares of the conversion scheme, not only can attract large numbers of retail investors follow suit, and after the dividend, 100 yuan of high priced stocks can instantly turn into 30 yuan of low price shares, low prices easier to cover the dealer fled; if the stock price is 50 yuan, 10 sent 20 to 10 yuan of stock.

This is the digital game with capital stock increasing. As long as the high priced and high priced stocks are turned into low price stocks, retail investors will dare to follow suit and pay the bills.

This is the "hidden rules" that the A share market has increased to a large scale.

However, sometimes junk stocks can be increased by a large proportion, allowing large shareholders to change hands, or letting the private placement of the lifting of the ban go.

For example, the long profit TCL group and Jingxing paper industry have increased 10 shares in every 10 shares in 2011, and the price of junk stocks has changed from three or four yuan to 1 yuan shares.

A shares rarely appear in 1 yuan shares, for two reasons: first,

In the name of nothing, junk stocks will not be delisted, so investors will not allow 1 yuan shares, otherwise, they will sell out 1 yuan shares.

Second, the A share market does not allow shares to be split and merged. Therefore, A shares rarely have 1 yuan shares.

Let's take a look at the 1 shares and cents shares in the Hong Kong stock market. Hong Kong stocks have no fixed denomination and can be split up or share consolidation at any time.

According to the closing statistics in January 22, 2016, a total of 59 stocks in the main board of Hongkong were less than 0.1 Hong Kong dollars; a total of 399 stocks were less than 0.5 Hong Kong dollars; a total of 660 stocks were less than 1 Hong Kong dollars; a total of 985 stocks were less than 2 Hong Kong dollars; besides, Hongkong gem also had more than 200 shares with a stock price below HK $2.

Less than HK $2.

The proportion is over 50%.

At the same time, however, the high priced stocks that fail to fall are the confidence of the Hong Kong stock market, such as Hang Seng, HSBC, Standard Chartered, Changhe, Changjiang, Tai Koo, Sun Hung Kai, Hongli finance, Prudential, Hongkong exchanges and so on.

As the face value of Hong Kong stocks is not uniform and unfixed, it is totally different from the mainland stock market in judging the stock price.

Some of the shares in Hong Kong stock have no denominations, for example, Hang Seng Bank, Manulife finance, China Mobile, Sun Hung Kai, Tai Koo and Hongkong exchanges. Some shares are small in value, for example, the shares of Tencent holding shares are HK $0.00002, and the shares of China construction land are 0.01 Hong Kong dollars.

In addition, there are other denominated shares in the Hong Kong stock market. For example, the face value of BYD shares is 1 yuan; the value of Prudential shares in the UK is 0.05; the HSBC Holdings and standard chartered stock have a face value of $0.5.

The way to constantly change the face value of Hong Kong stocks is mainly the share split up (stock split) and share consolidation (stock reduction).

As of January 22, 2016, a total of 46 stocks were split in one year, and another 61 stocks were split.

The two concepts of split share capital and capital reserve increase are completely different.

To split shares is to reduce the face value of stocks, and to reduce shares is to raise the face value of shares.

However, the increase in capital reserve will not change the face value of shares.

But all of the two will change their financial indicators.

Therefore, after the opening of Shanghai Hong Kong Tong or Shenzhen Hong Kong stock exchange, mainland investors should learn to understand the rules of stock splitting or stock reduction of listed companies so as to make correct investment decisions.

If Hong Kong and Shenzhen are to open up cheap shares in the future, the mainland shareholders should not blindly rush to buy cheap Hong Kong stocks, especially the "super low price" of a few cents or a few cents.

。

For example, after the thousand li eye holdings split into 50 shares, the total share capital is still only more than 800 million shares, but its share price has not been more than HK $0.5, which is almost unthinkable in the mainland stock market.

In the A-share market, investors have long fry up 10 or 20 times the price of A shares.

For this reason, we are deeply worried that if one day "Shenzhen Hong Kong Tong" opens up Hongkong's cheap shares, it is entirely possible for mainland shareholders to eliminate all more than 800 stocks less than 1 Hong Kong dollars within 3 months. This will be a catastrophe and a great setback for Hong Kong stocks.

In the past year, the largest share in the split share market was the "thousand mile eye". The share price of every 10 shares was 500 shares. The final closing price before August 13, 2015 was HK $36.15, and the closing price for the first trading day was HK $0.255 in August 28th.

Before the stock split, the face value of the shares was HK $0.2, and the face value of the shares was reduced to HK $0.004 after the stock split.

On the contrary, the largest proportion of stocks is the Yellow River industry, and every 40 shares are combined to 1 shares. In January 22, 2016, the closing price of the stock was HK $0.03, and the stock reduction plan had not yet been implemented.

Assuming that the stock price is reduced by current price, the stock price will be changed to HK $1.2.

Before the closing of the stock market, the Yellow River's industrial shares were valued at HK $0.001, and the face value of the shares would be increased to HK $0.04 after the contraction.