How Does The A Share Market Of Shenzhen Hong Kong Tong Pass Into Operation?

Shenzhen Hong Kong Tong "open to traffic", will A share reappear 2 years ago? It is undeniable that for the A share market, after a long period of bottom shock, the situation of short and long stalemate is also urgent need to have an external force to break, and Shenzhen Hong Kong Tong's "open to traffic" incident is also expected to get market attention, but whether it can eventually become a catalyst for the A share market reactivation, still need to continue to observe.

However, in the current market investment sentiment tends to be rational, and many funds have not yet come from the background of the previous stock market turmoil, even if Shenzhen Hong Kong Tong's news can get the market's popularity, it may not be able to make the A share market reappear 2 years ago.

According to the scheduled plan, Shenzhen Hong Kong Tong business will be held in from October 22nd to 23rd this year. With the completion of a series of preparatory work, it will also mean that the time of opening the Shenzhen port is not far away.

In fact, in view of this round of Shenzhen Hong Kong Tong's "open to traffic" really did a lot of preparatory work.

At the same time, we can also note that during the preparation process for Shenzhen and Hong Kong, we have fully absorbed the experience and lessons of Shanghai and Hong Kong through "opening up" before and further improved them.

Among them, the most highlights are in the following aspects.

First, for the opening of the Shenzhen Hong Kong Tong, the total quota will not be set up, and Shanghai and Hong Kong Tong also announced that it would not set the total limit immediately.

However, for Shenzhen Hong Kong Tong, it still has a daily quota limit, of which 13 billion yuan is deep stock and 10 billion 500 million yuan is Hong Kong stock.

Second, the investment targets for the Shenzhen round Hong Kong pass and the investment targets of Hong Kong stocks through Shenzhen and Hong Kong have all set different market value requirements.

Among them, the Shenzhen Hong Kong investment target is to refer to paction data to examine the daily average market value of A shares in the first 6 months of the cut-off date. As for Hong Kong stocks through Shenzhen and Hong Kong, the first 12 months of the cut-off date will be examined with reference to paction data.

Average market value at the end of the month.

As for some listed companies whose market value is not up to standard, or are warned by risk warning or even suspended, they are not included in the investment target of Shenzhen Hong Kong Tong.

Third, according to the relevant information, in the Shenzhen Hong Kong through the "traffic", it is clear that B shares will not be included, and ETF and bonds do not include.

However, for ETF, the future may not be excluded from the situation, which still needs continuous observation.

In November 17, 2014,

Open the gate formally.

Affected by this, the scale of financing in the A share market and the size of the over-the-counter funding have shown signs of soar in varying degrees.

Since then, in less than 7 months, the size of the A share market has surged to 2 trillion and 270 billion, and the size of the A share market has also soared to the potential level of the trillions.

However, in view of the bull market at that time, it was still inseparable from the driving effect of capital, especially when the highly leveraged tools were fully activated, but it accelerated the pace of the stock market's rise.

At the same time, combined with the analysis of the market environment between AH shares at that time, the valuation level of the A share market still had certain advantages over the Hong Kong stock market.

However, to date, although the distance between Shanghai and Hong Kong has been opened to traffic for nearly two years, there are many changes in the market environment and market fundamentals of the A share market.

Among them, from the perspective of the AH share premium rate, the AH share premium index is still above 120, which means that the A share market still has a higher premium rate than the H-share market.

This is quite different from the AH share discount premium level in the second half of 2014.

Moreover, with the vigorous development of a new era,

After the "de bubble" process, the highly leveraged tools have been cooled by the market, and the overall leverage ratio of the A share market has shown signs of a significant reduction.

As a result, for the stock market driven by capital, once the driving effect of highly leveraged funds is extinguished, the driving force of the market will often be greatly reduced.

In addition, the Shanghai and Hong Kong Tong, Shenzhen Hong Kong through the "opening", in essence, it is inseparable from the two-way flow of funds, the two markets interconnection goals.

As a result, to seek profit driven funds, it is more likely to use the arbitrage opportunities between the two markets to achieve better arbitrage space to meet the pursuit of maximizing profits.

Perhaps, in the next period of time, the arbitrage space of the AH share market is also gradually shrinking, and the trading mode and paction data of the two markets will gradually become more integrated.