[Global Times reporter Zhao Juexuan] The two-way expansion of the Shanghai-Shenzhen-Hong Kong Stock Connect will be implemented on the 13th. Not only thousands of stocks have been included in the Shanghai and Shenzhen Stock Connects, but many foreign companies listed in Hong Kong have also been included in the Hong Kong Stock Connect for the first time.
"Hong Kong Commercial Daily" commented on the 13th that the continuous expansion and optimization of the interconnection mechanism will help enhance the activity and influence of the two markets, better meet the cross-border investment needs of investors in the two places, and promote the capital markets of the two places. Pragmatic cooperation to promote a higher level of two-way opening up of the capital market.
According to the information released by the Hong Kong Stock Exchange, the first batch of expansion will include 598 and 436 stocks in Shanghai and Shenzhen Stock Connect. After the expansion, the number of stocks in Shanghai and Shenzhen Stock Connect will reach 1,192 and 1,336 respectively. The market value coverage ratios are 90.94% and 86%, respectively, which are 15.56% and 9.56% higher than the current Shanghai Stock Connect and Shenzhen Stock Connect respectively.
Hong Kong's "Caihua Net" said on the 13th that on the same day, the Hong Kong stock market ushered in a comprehensive rebound, especially the constituent stocks selected for Hong Kong Stock Connect, leading the market.
At the close on the 13th, the Hong Kong Hang Seng Index rose by 1.95%.
The Shanghai Composite Index rose 1.2%, and the Shenzhen Component Index rose 0.55%.
According to public information, since the opening of the Shanghai-Hong Kong Stock Connect in 2014 and the Shenzhen-Hong Kong Stock Connect in 2016, under the guidance of the regulatory agencies of the two places, the exchanges and settlement companies of the two places have continuously enriched and expanded the scope of interconnection targets and continued to optimize the transaction settlement mechanism. Stocks and ETFs (Exchange Traded Funds) on the Science and Technology Innovation Board were included in the scope of targets, the total quota was canceled, the daily quota was increased in both directions, and the trading calendar arrangement of the two places was optimized.
At present, Shanghai-Shenzhen-Hong Kong Stock Connect has become one of the most important channels for foreign capital to participate in A-share market transactions.
As of the 10th of this month, northbound funds have accumulated a net purchase of 1.87 trillion yuan of A shares, including 990.213 billion yuan for Shanghai Stock Connect and 884.177 billion yuan for Shenzhen Stock Connect.
"Hong Kong Commercial Daily" stated that this expansion is also expected to increase the attractiveness of the A-share market to foreign capital, attract more foreign professional investment funds to enter the Chinese capital market, and enhance market activity and liquidity.
Hui Jiahao, a chartered financial analyst in Hong Kong, told the Global Times reporter on the 13th that this expansion is the largest two-way expansion in the history of the mainland and Hong Kong capital markets, and it can be said to be a "milestone" of the interconnection mechanism.
With the opening of the financial market to the outside world, the expansion of the interconnection mechanism is not only conducive to the entry of foreign capital, but also conducive to the "going out" of Chinese capital.
Hong Kong media also noticed that foreign companies listed in Hong Kong, including Standard Chartered Group, Samsonite, L’Occitane, etc., were also included in the stock targets of Hong Kong Stock Connect this time, which also means that mainland investors can invest in the above-mentioned companies more conveniently.
Xie Mingguang, managing director of Yongyu Securities, told Hong Kong's "Ta Kung Pao" that the continuous expansion of interconnection in recent years has driven the continuous increase in the trading volume of Hong Kong stocks.
After the stocks of foreign companies are included in the stock targets of Hong Kong Stock Connect, more high-quality companies will choose to list in Hong Kong.
In addition to attracting the inflow of northern water, Hong Kong investors will also increase their interest in the stock market, and the average daily trading volume of Hong Kong stocks is expected to further increase.