GEM loosening the T+0 trading may wish to go first
Spotlight
Two stocks of Hong Kong stocks staged a big ups and downs, in fact, a lesson to the A-share market.
The trend of two stocks in the Hong Kong market stunned investors. First, China Metals (01636), the stock price collapsed in the afternoon of June 16, the stock price plunged from around 2.89 Hong Kong dollars to the lowest price of 0.22 Hong Kong dollars, the largest decline reached 92.39% on the day, and closed at 0.50 Hong Kong dollars throughout the day, the decline reached 82.70% .
Another stock is Oriental Fortune Securities, with the largest increase of 1045.83%. The stock price closed at HK$0.24 that day, a 400.00% increase throughout the day.
One stock plunged 92.39% and one stock surged 1045.83%. From the perspective of bystanders, such a big ups and downs are indeed quite exciting. But from the parties concerned, it is another state of mind. The skyrocketing share price is actually something that all investors hope to encounter. But when you buy at a high level, it will bring huge losses to investors. For example, Orient Securities has the highest price of 0.55 Hong Kong dollars on the day, with a closing price of 0.24 Hong Kong dollars, a decrease of 56.36%. Most of the wealth has been evaporated, and such losses are also huge. Therefore, even if the stock price soars, it will not bring all the returns to investors.
The Hong Kong stock market's flash crash and skyrocketing trend are caused by the absence of restrictions on the rise and fall. It is also for this reason that the limit of fluctuations is actually beneficial to the protection of investors, especially the interests of small and medium investors, which is also an important reason for the implementation of the limit of fluctuations in the A-share market.
The ups and downs of Hong Kong stocks have actually taught the A-share market a lesson. After all, in recent years, especially since this year, there has been a resurgence of calls in the A-share market to remove the restrictions on the rise and fall. As a result, the Science and Technology Board and the recent GEM reforms have also appropriately relaxed the restrictions on the rise and fall of the stock, and the restrictions on the rise and fall of the stock have been relaxed from 10% to 20%. It is obviously correct for management to relax rather than abolish the limits on the rise and fall. After all, flash collapse and skyrocketing are unbearable weights for the A-share market. At this stage and for a long period in the future, it is necessary to impose limits on the rise and fall of the A-share market.
One of the most important reasons for this is that the A-share market is a market with small and medium investors as the main body, which is very different from the Hong Kong market. The reason why Hong Kong stocks have no fear of collapse and skyrocketing is because investors in the Hong Kong market are dominated by institutional investors, and international investors account for a large proportion. Compared with small and medium investors, institutional investors obviously have a stronger ability to bear.
Another very important reason is that the lifting of the limit of the rise and fall is necessary to be matched with the T+0 system and the stock option system. For Hong Kong stocks, investors can largely control investment risks. For example, you can stop losses in time through T+0, or short on stock options, to hedge or lock in the investment risks caused by stock declines. However, the A-share market lacks such tools to prevent risks. Once the stock plunges, investors can only swim naked and carry investment losses.
On the issue of the rise and fall, one problem that the A-share market needs to face directly is that the rise and fall have been relaxed. How can investors prevent risks? At present, the Science and Technology Board has adopted a 20% increase and decrease, and the GEM reforms recently carried out have also adopted a 20% increase and decrease. Compared with the Hong Kong stock's no increase or decrease limit, the investment risk corresponding to the 20% increase or decrease is much smaller, but this risk is also not to be underestimated. If an investor encounters a "sky floor", the loss of nearly 40% can be said to be hard to bear. Especially for GEM investors, with small and medium-sized investors as the main body, in order to avoid or reduce the serious damage to the "sky floor" for small and medium-sized investors, it is necessary to implement T+0 trading on the GEM first. For the GEM, it is more than enough.
□Pi Haizhou (financial commentator)