Shenzhen And Hong Kong Through The Capital Market Regional Internationalization

The highly anticipated Shenzhen Hong Kong link will be opened in December 5, 2016. According to Li Xiaojia, President of the HKEx, "risk management and control" will give priority to the launch of Shenzhen Hong Kong Tong on Monday.

In view of the current timetable ".

Shenzhen and Hong Kong through the agreement, A shares open to accelerate.

The internationalization of China's capital market goes further.

The Shenzhen Stock Exchange stock market is a Shenzhen stock index with a market value of more than 6 billion yuan and a constituent stock of Shenzhen Shenzhen small and medium innovation index, as well as A shares listed on Shenzhen Stock Exchange by A+h share listed companies.

The Hong Kong stocks in Shenzhen and Hong Kong pass through the stock market. They are the constituent stocks of the Hang Seng comprehensive large share index, the constituent stocks of the Hang Seng comprehensive medium share index, the constituent stocks of the Hang Seng comprehensive small cap index with a market value of HK $5 billion and above, and the H shares of the A+ H-share listed companies listed on the main board of the stock exchange, but excluding the corresponding H shares of the A stock exchange, which have been implemented by the Shenzhen stock exchange for risk warning, being suspended from the market or entering the delisting period, and do not include the corresponding H-shares of A shares in the Shanghai Stock Exchange's risk warning board.

The difference between Hong Kong stocks and Shanghai and Hong Kong stocks is the expansion of Hong Kong stocks through the stock market. On the basis of Shanghai and Hong Kong, new stocks of the Hang Seng comprehensive small cap index with a market value of HK $5 billion and above have been added, including the H-share of the entire A+H company listed on the Shenzhen Stock Exchange and the main board of the stock exchange.

Shenzhen Stock pass stock includes some small and medium sized board and gem stock, Shenzhen and Hong Kong shares through Hong Kong stocks through the stock added new Hang Seng Integrated Small Cap Index constituent stocks.

In order to prevent speculation and manipulation risks in the cross border market of small and medium capitalization stocks, Shenzhen and Hong Kong introduced the market value screening standard for the underlying stocks and made clear the application of the market value standard in the target adjustment mechanism.

Among them, Shenzhen Stock pass standard is not less than 6 billion yuan, Shenzhen stock index and small and medium innovation index constituent stocks, Hong Kong stock through the new Hang Seng comprehensive small cap index constituent stocks set no less than HK $5 billion market value standard.

The absence of a total quota limit will help further promote the opening up of the financial market and facilitate the internationalization of the RMB and capital account convertibility.

In order to guard against cross border liquidity risks, Shenzhen and Hong Kong share the same daily limit as Shanghai and Hong Kong. The daily limit of Shenzhen stock exchange is 13 billion yuan, and the daily share of Shenzhen and Hong Kong shares is 10 billion 500 million yuan, which is exactly the same as that of Shanghai and Hong Kong.

Participating investors must be institutions.

And the total amount of securities account and capital account balance is not less than RMB 500 thousand yuan, and it is necessary to fulfill the relevant procedures stipulated in the appropriate guidance.

After the announcement of the joint announcement, the Shenzhen Stock Exchange indicated that it should implement the concept of supervision by law, strict supervision and comprehensive supervision, strengthen monitoring and control, guard against cross border speculation risks, and crack down on illegal practices such as market manipulation and insider trading.

There are great differences between the mainland and Hongkong in terms of the legal system, trading system, investor structure and investment philosophy. Cross-border paction supervision has some complexity. From the perspective of the operation of Shanghai and Hong Kong, the two regulatory bodies and exchanges have cooperated in signing forms of supervision and law enforcement cooperation memorandum to jointly combat cross-border manipulation such as market manipulation and insider trading, and achieved good results.

The Shenzhen Stock Exchange will actively learn the experience of Shanghai and Hong Kong through the unified leadership and deployment of the China Securities Regulatory Commission, and take effective measures to further prevent cross border speculation risks and maintain safe and stable operation of the market.

The opening of Shenzhen Hong Kong Tong is the launch of Shenzhen Hong Kong link on the basis of the successful pilot of Shanghai and Hong Kong. This marks a solid step forward in the direction of legalization, marketization and internationalization of China's capital market, and has many aspects of positive significance.

After the launch of Shenzhen Hong Kong Tong, the A share valuation system will further integrate with the international mature market valuation system.

After the launch of Shanghai and Hong Kong

The valuation system is gradually integrated with the international valuation system, and the launch of Shenzhen Hong Kong Tong will speed up the process.

A shares of blue chips have a certain valuation of the role of repair, and A shares overvalued small cap stocks have a certain inhibitory effect.

Small cap stocks in Hongkong are more concerned about the growth stocks of Hong Kong stocks.

The Hongkong stock market is a relatively mature investment market with a greater emphasis on investment value. Shenzhen and Hong Kong will help the large and high technology stocks in the Hong Kong stock market as the investment target of mainland investors' growth stocks. This will help to change the excessive speculation of some small cap stocks and concept stocks in A shares, and pay attention to the risks in these stocks of A shares.

For Hong Kong stocks, the concern of Hong Kong stocks will increase in the future, and we should pay more attention to the growth stocks of Hong Kong stocks.

Favorable brokerage industry.

Good brokerage business, especially in Hong Kong securities companies.

Because Hongkong brokerage commission rate is higher, generally around 0.3%, higher than 0.07% of domestic brokerages, so the contribution to Hongkong brokerage business is greater and greater elasticity.

The internationalization of RMB has gone further.

The launch of Shenzhen Hong Kong Tong has further expanded the opening and interoperability of different capital markets, facilitating the outflow of funds from the mainland and the entry of overseas funds.

The launch of Shenzhen Hong Kong Tong is an important step towards internationalization of the RMB. Its launch can expand the allocation of Renminbi assets by overseas institutions while expanding the allocation of overseas assets by domestic institutions.

Undervalued white horse growth stocks, consumer stocks and high dividend stocks are more popular.

According to the preference of Hong Kong stock investors, after the opening of Shenzhen Hong Kong Tong, Hongkong funds will prefer white horse growth with good performance, undervalued performance, high consumption rate and high dividend yield.