Chen Jiaqiang, Secretary for Financial Services and the Treasury of Hong Kong, said that Shenzhen-Hong Kong Stock Connect would not be studied before it was launched, but it was the "next step". In addition, regarding mutual recognition of funds in the two places, he said frankly that the plan has an established timetable, and the regulatory authorities in the two places have also known it, hoping to launch it as soon as possible.
Chen Jiaqiang said that it is difficult to estimate the reaction of the two markets to Shanghai-Hong Kong Stock Connect for the time being. He reminded investors to be more careful and understand the risks of investing in A shares. He hopes to learn more about the investment rules in the Mainland and refer to the information released by institutions such as the Investor Education Center.
Song Qinghui: Shenzhen-Hong Kong Stock Connect is more significant than Shanghai-Hong Kong Stock Connect.
For Hong Kong investors, the opening of Shenzhen-Hong Kong Stock Connect means that more investment targets will be released. In the case of weak global stock market, the rise of A shares will make more overseas investors flood in, giving them one more choice and adding another popularity to the Shenzhen Stock Exchange market.
It will be difficult for Shanghai-Hong Kong Stock Connect to make further changes, but Shenzhen-Hong Kong Stock Connect can be optimized and improved on the basis of Shanghai-Hong Kong Stock Connect. Therefore, the core of Shenzhen-Hong Kong Stock Connect is not "communication" but "integration", such as the comprehensive integration of the two places in finance, law and many other aspects. Geographically, Shenzhen and Hong Kong are very convenient, and the two places are closely linked in terms of capital flow, information flow and investment concept. It can be expected that Shenzhen-Hong Kong Stock Connect will play a very good role in promoting the development of the two places, provided that the rules of the game are formulated according to the actual form.
First of all, the restrictions on the threshold of investors need to be adjusted. Although a higher threshold can protect investors, it also hinders investors from studying in mature markets, and tuition fees still have to be paid. Secondly, the target of Hong Kong Stock Connect needs to be further expanded to give investors more choices and promote the mutual circulation of funds between the two cities. In any case, Shenzhen and Hong Kong should have new forms of cooperation, so as to create more win-win rather than brutal competition, and make the market more prosperous through differentiated development.
It should be noted that the P/E ratio of Shenzhen Growth Enterprise Market is quite different from that of Hong Kong stock market, usually more than 50 times, while the average P/E ratio of growth stocks in Hong Kong market usually fluctuates around 20 times. If GEM stocks are used as investment targets, the opening of Shenzhen-Hong Kong Stock Connect in this case with a large valuation gap may have a huge impact on the GEM market, so GEM stocks as Hong Kong stocks may become a dangerous move.
But in any case, the official launch of Shenzhen-Hong Kong Stock Connect will have a profound impact on the Shenzhen market and the Hong Kong stock market in six aspects: First, the Shenzhen market will usher in a wave of foreign investment stimulus. Second, Shenzhen stock market can learn from the complete system and mechanism of Hong Kong stock market separated by a river. Thirdly, Qianhai can be used as a strategic platform to connect Shenzhen and Hong Kong. Shenzhen-Hong Kong Stock Connect does not rule out setting up a special office in Qianhai. Fourth, under the background of different capital flows in the two cities, there may be a wave of low tide in Shenzhen SME board and GEM, but in the long run, Shenzhen SME board and GEM will usher in breakthrough development, and the "fence" of Shenzhen-Hong Kong integration will be completely broken. Fifth, the scarce assets of Hong Kong stocks will benefit, while high-valued varieties may have a negative impact. Sixth, the GEM valuations in Hong Kong and Shenzhen are several times different. The opening of GEM may cause one-way flow of funds, which will have an impact on Hong Kong stocks.
Song Qinghui: Shenzhen Stock Exchange 100 constituent stocks will be included in Shenzhen-Hong Kong Stock Connect.
Song Qinghui, an economist, also told Great Wisdom News Agency that the specific start-up time of Shenzhen-Hong Kong Stock Connect needs to be approved by the top level of the central government. According to his prediction, Shenzhen-Hong Kong Stock Connect will be launched as early as June this year. Because the Shanghai-Hong Kong Stock Connect needs an observation period of about 6 months, if the Shanghai-Hong Kong Stock Connect runs smoothly, the launch of Shenzhen-Hong Kong Stock Connect is reasonable. Hongkong is communicating with Shenzhen Stock Exchange [Weibo] on computer system connection and other issues. It says that Shenzhen-Hong Kong Stock Connect is an upgraded version of Shanghai-Hong Kong Stock Connect, which mainly means that it will be very difficult for Shanghai-Hong Kong Stock Connect to make further changes, but Shenzhen-Hong Kong Stock Connect can be optimized and improved on the basis of Shanghai-Hong Kong Stock Connect.
As for the Shenzhen-Hong Kong Stock Connect Index, Song Qinghui believes that the initial target scope of the Shenzhen Stock Connect pilot may be the Shenzhen Stock Connect 100 Index, the Shenzhen Stock Connect 300 Index and the A+H shares listed in Shenzhen and Hong Kong at the same time.