Hongkong Investors Need To Configure Shenzhen GEM

The Hongkong Securities Regulatory Commission recently launched a consultation on the proposal to amend the rules for securities and Futures (professional investors). The consultation period will end until April 3rd.

The proposed amendments include expanding the types of professional investors and lowering the threshold of individual professional investors. This means that investors who are allowed to sell Shenzhen GEM in the future are expected to increase.

According to the joint announcement of the China Securities Regulatory Commission and the Hongkong Securities Regulatory Commission, investors in the Shenzhen stock exchange's gem stock market are only limited to the professional investors defined by the relevant rules of Hongkong through the early opening of Shenzhen Stock Exchange.

According to the current rules of securities and Futures (professional investors) in Hongkong, Hongkong professional investors are divided into two types: professional investors and professional investors. Among them, institutional investors include trustee with total assets of not less than HK $40 million (or equivalent foreign currency), a company or partnership with a portfolio of not less than 8 million Hong Kong dollars (or equivalent foreign currency), or a total assets of not less than 40 million Hong Kong dollars (or equivalent foreign currency), and three types of companies exclusively invested by professional investors.

In a consultation paper issued on 1, it is suggested that the types of professional investors should be expanded to cover the main business (not the sole business), a company holding investment projects and wholly owned by at least one professional investor, and wholly owned subsidiary companies that meet the requirements of institutional investors.

The Hongkong Securities Regulatory Commission pointed out that this is an adjustment made according to the needs of the industry, because it is quite common for a person or company to set up a company for investment purposes. Although these investment companies may also operate other businesses, this will not seriously affect or cause them to deviate from the main business of investment.

In addition, if the assets or portfolio of a wholly owned subsidiary of a company satisfies the requirements of becoming a professional investor, the company qualifies as a professional investor.

It is also reasonable.

It is worth noting that in this consultation document, the Hongkong Securities Regulatory Commission proposed a significant reduction in the identification threshold of individual professional investors.

According to the existing rules, one of the conditions for becoming a professional investor is that the total amount of investment in a separate account or its joint account with a spouse or child shall not be less than HK $8 million.

The Hongkong Securities Regulatory Commission recommended in the consultation paper that individuals should be identified.

Whether the total amount reaches the minimum of HK $8 million, in addition to the calculation of spouse or children, the proportion of portfolios in accounts shared by parents, siblings, business partners and so on can also be included.

In addition, the Hongkong Securities Regulatory Commission also recommends that assets owned by a wholly owned or partially owned company and whose main business is investment can also be calculated within the total amount of personal investment.

"This will reduce the entry threshold for institutional investors in disguise, because the investment companies wholly established by individual professional investors can be identified as institutional professional investors. With the lowering of the threshold of individual professional investors, the threshold of institutional professional investors has also decreased."

Some analysts pointed out.

Hongkong Securities Regulatory Commission expects that under these suggestions, more investors will qualify as professional investors.

It is understood that investors in Hongkong have always had the need to configure Shenzhen GEM. Previously, because non institutional investors could not invest in Shenzhen GEM through Shenzhen Stock Exchange, some investors could only choose RQFII A ETF, which was listed in Hong Kong, which affected their investment enthusiasm to a certain extent.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.