Chinese concept stocks continue to be listed in Hong Kong, how can investors "Nuggets" return to the tide?

(Economic Observer) China concept stocks continue to be listed in Hong Kong. How can investors return to the trend of "Nuggets"

　　China News Service, Beijing, November 18 (Reporter Xia Bin) The "returning home" of China Concept Stocks is still continuing.

In November, GDS and New Oriental successively achieved secondary listings in Hong Kong. So far this year, there have been 10 Chinese concept companies listed on the Hong Kong capital market, and Ctrip, Baidu, Station B, and Autohome have all The plan or intention to return to Hong Kong for a second listing is reported.

　　Facing the return of Chinese concept stocks, how should investors share the dividends?

Recently, the "2020 International Investment Forum" jointly organized by ICBC International and Caixin Media was held in Beijing. Guests at the meeting gave investors' "Nuggets" strategy.

　　What attracts investors is the scale and volume of the return of China's concept stocks.

Wang Wei, Deputy Chief Executive Officer of ICBC International Holdings Co., Ltd. pointed out that in the past year or so, the total financing amount of the second-listed Chinese concept companies in Hong Kong has reached nearly US$30 billion, accounting for 51.8% of the Hong Kong market in the same period. It has played an important role in being the number one in IPO financing in the international market.

　　According to calculations by ICBC International, the total market value of each Chinese concept stock's secondary listing in Hong Kong in the future will be around US$650 billion, and a 10% issuance ratio will result in a financing scale of approximately US$65 billion.

　　Bao Haijie, managing director of the Hong Kong Stock Exchange, said that investors need to have a regulatory standard that they are familiar with and a global regulatory standard.

Hong Kong has obvious advantages and abundant liquidity in terms of language, regulatory environment or market environment.

　　Wu Minwen, chairman of Shengshijing Asset Management Group Co., Ltd., pointed out that local ordinary investors and institutional investors in Hong Kong can directly participate in the secondary listing of China Concept Stocks in Hong Kong.

With the internationalization of A-shares and the launch of the "Southbound Stock Connect", investment convenience is gradually improving, and retail investors in the Mainland need to enter the Hong Kong capital market through brokerage investment institutions.

　　"The return of China Concept Stocks does provide a very good business opportunity for all capital market participants." Wang Wei said that Chinese investors are a very important investment force in the secondary listing of China Concept Stocks.

For example, in the Hong Kong secondary listings of the above 10 companies, the proportion of Hong Kong retail investors participating in the "local placement" subscription multiples of some projects is as high as about 300 times, while the subscription multiples of institutional investors are relatively stable, around 6 About 8 times, and about 90% of participating investors are institutional investors.

　　Wu Minwen specifically mentioned that the secondary listing in Hong Kong is currently a preferred method for Chinese concept stocks, but on the other hand, it is believed that more large companies will choose to issue CDRs (Chinese Depository Receipts) in A shares. There are precedents for the board, such as No. 9 Smart Company.

　　Zhang Wei, deputy dean of the Faculty of Law of Singapore Management University, said that for the return of China Concept Stocks, the government needs to carry out the reform of the securities issuance registration system. In fact, the registration system reform is not only a set of rules, but also a regulatory concept. It is to remove the administrative barriers to enter the capital market and pursue the full use of market mechanisms to achieve capital allocation efficiency.

　　Wu Minwen also reminded that in the short term, the return of Chinese concept stocks is more eye-catching, which is likely to trigger short-term market transactions and even speculation.

In the long run, the A-share market, the US market and the Hong Kong market will compare the long-term value of listed companies in the same dimension.

"How to stand in an investment institution and view the current value and future growth of an enterprise from a global perspective, so as to make your own investment decisions is particularly critical." (End)