Shenzhen And Hong Kong Officially Sailed, Stock Prices May Not Rise.

Under the background of devaluation and shortage of assets, Shanghai and Hong Kong and Shenzhen Hong Kong will still maintain the situation of hot south and cold north next year. The positive impact of Shenzhen Hong Kong link on Hong Kong stocks will be greater than that of A shares. The experience of Shanghai and Hong Kong shows that the capital in the South favors the financial sector led by banks in Hong Kong stocks, while northward capital favors industry leading shares in A shares. But historical data back test shows that Shanghai and Hong Kong through the net capital inflow of large stock prices are not necessarily rising.

China SFC And the Hongkong Securities Regulatory Commission recently issued the joint announcement, which approved the opening of Shenzhen and Hong Kong in December 5, 2016. Shanghai and Hong Kong have been running smoothly for 2 years. What are the differences between the opening of Shenzhen and Hong Kong? What new opportunities will there be in the future? Let us answer them one by one.

　　 First, Shenzhen Hong Kong through the expansion of the stock index, the new A shares of 881, add 102 of the Hong Kong stock target

The biggest difference between Shenzhen Hong Kong and Shanghai and Hong Kong is the expansion of underlying stocks. The 881 stocks of Shenzhen Stock Exchange are Shenzhen Stock Exchange. For Hongkong investors, Shenzhen stock exchange shares all the new A shares, and Shenzhen and Hong Kong stocks share 417 stocks. For mainland investors, 315 of them were previously listed on the Shanghai and Hong Kong stock market. Now, Shenzhen and Hong Kong stocks have added 102 additional Hong Kong stocks to the target market. The 881 stocks are listed on the Shenzhen Stock Exchange.

　　 Two. Prediction Shenzhen-Hongkong Stock Connect It will continue the situation of the South heat and the north cold. Next year, the new capital size will be 4000-5000 billion yuan next year. The positive impact of Shenzhen and Hong Kong's opening up on Hong Kong stocks will be greater than that of A shares.

The background of RMB depreciation and asset shortage is the driving force of the mainland's capital going south. The accelerated establishment of various "Shanghai Hong Kong Shenzhen fund" and the hot popularity of mutual recognition fund in Hongkong all indicate that the mainland's funds are going south. In September this year, the CIRC allowed the venture capital to invest in Hong Kong stocks through Hong Kong stocks, and the scale of funds will further expand next year. It is estimated that the next year's capital will be increased by 4000-5000 billion yuan next year, of which the insurance fund will be about 70 billion yuan.

　　 Three, looking for Shenzhen Hong Kong Tong based on the experience of Shanghai and Hong Kong investment opportunity

Subject to our high dividend yield and high ROE, we recommend HK Stock electric power, de Yongjia group, fortune bird, China Lee Lang, Yingde gas, Hongxing Mei Kai Long, Giordano international, Yuzhou real estate, XTEP international, China Mechanical Engineering, flower holding company, far east development, Chongqing bank, Weisheng group, CITIC International Telecom, Jin Feng science and technology, new town development holdings. Interested investors can pay close attention to A shares Wuliangye, the Yanghe River stock, Shuanghui development, Yunnan Baiyao, Dong'e donkey hide gelatin, blue water source, Shenzhen airport, Midea Group, GREE electric appliance, Hikvision, GoerTek share, Oriental rain rainbow and so on after the opening of Shenzhen and Hong Kong through a larger probability of inflow of A shares. In terms of Hong Kong stocks, we think it is desirable to adopt the idea of "rejoice in the old" and look for investment from the 102 additional stocks.

Of course, although Shenzhen and Hong Kong can not trigger the bull market of A shares, but also to A share market investors to invest in A shares pointed out the direction. Because this time, the Shenzhen stock market has 881 stocks, including 267 deep market motherboards, 411 small and medium board, and 203 gem. These companies have at least been recognized by the Shenzhen Stock Exchange. Therefore, investors can choose the 881 stocks if they invest in Shenzhen stock market.

Risk warning: (1) Hong Kong stocks do not have a price limit. The single day fluctuation of share price may be far greater than that of A shares. (2) Hong Kong stocks are priced in Hong Kong dollars and are faced with certain risk of exchange rate fluctuations. (3) in the US interest rate cycle, international investors in the Hongkong market may turn their funds to the US market, which may lead to less than expected Hong Kong stocks.