On August 8, the Shanghai Stock Exchange convened about 60 brokers to hold a mobilization meeting for Shanghai-Hong Kong Stock Connect, and will conduct a firm test of the Hong Kong Stock Connect production line on August 16, 17 (next Sunday), 23 and 24. It seems that I am afraid of sleeping, and the speed at which the Shanghai Stock Exchange pushes into the Hong Kong Stock Connect business is really amazing. So today we will carefully analyze the main differences between Hong Kong Stock Connect and investors going directly to Hong Kong to open accounts.
(a) the scope of the transaction object
Generally, investors who open accounts directly in Hong Kong can invest in all listed stocks in the Hong Kong market, including the Hong Kong Main Board and Growth Enterprise Market, totaling more than 65,438+0,000 stocks; You can also trade turbines, bull and bear certificates, Hang Seng index futures and state-owned enterprise index futures in the Hong Kong market, buy various funds traded in the Hong Kong financial market, and short some stocks traded in the Hong Kong stock market; At the same time, many investors can open securities accounts in Hong Kong, invest in stock trading in many countries around the world, participate in overseas futures trading (including foreign exchange futures), and buy and sell Shanghai and Shenzhen B shares.
During the pilot period of Hong Kong Stock Connect, investors can only invest in 264 companies, namely Hang Seng Market Index, Hang Seng Mid-market Index and A+H Company, which are listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange. Although it only accounts for 18% of the total number of Hong Kong stocks, its market value accounts for more than 80% of the total market value of Hong Kong stocks.
On the whole, the trading targets of Hong Kong Stock Connect are all large and medium-sized constituent stocks in the Hong Kong stock market, and the average PE is about PE 10 times. On the whole, most of them are blue-chip stocks with guaranteed performance and relatively good liquidity. It seems that at the beginning of the pilot, the regulatory authorities paid more attention to investment risks, and the target scope of Hong Kong Stock Connect avoided two big pits in which most domestic investors lost money in the Hong Kong stock market in recent years: one was derivatives based on turbine and bull-bear certificates in the Hong Kong stock market, and the other was low-priced fraudulent replenishment of shares in the Hong Kong stock market.
(2) Transaction arrangement
Compared with investors who open accounts in Hong Kong, the trading days of Hong Kong Stock Connect investors are about 20 days less than those of ordinary Hong Kong stock investors. At the end of each year, the two markets begin to negotiate the trading day arrangement for the next year. The basic principle of trading day arrangement of Hong Kong Stock Connect is to designate the trading day when both markets can conduct normal trading and settlement as the trading day of Hong Kong Stock Connect.
Judging from the arrangement of intraday trading, during the pilot period, investors of Hong Kong Stock Connect can only participate in the trading in the form of bidding price limit at 9: 00-9: 15, and can only participate in the enhanced price limit trading at 9: 30- 12: 00 am and 13: 00 pm, and are allowed to do so.
Investors of Hong Kong Stock Connect can't participate in trading during the pre-trading period from 9: 15 to 9: 20 and the trading period from 9:20 to 9: 28, and can't conduct bidding trading during the continuous trading period in the day. In terms of trading arrangements, investors in Hong Kong Stock Connect will be subject to some restrictions, especially during some long holidays in China, most of the Hong Kong stock market is normal trading, and investors in Hong Kong Stock Connect cannot participate in trading, so investors need to pay attention to the risk of stock price fluctuation.
(3) Investor access
Generally, investors who open accounts in Hong Kong do not stipulate the entry conditions for investors, and small funds below tens of thousands of Hong Kong dollars can also participate in the investment. The access requirements for the Hong Kong Stock Connect business must be institutional investors holding Shanghai A-share securities accounts and individual investors holding Shanghai A-share accounts with a total balance of securities and capital accounts of not less than 500,000 RMB. During the pilot period of Hong Kong Stock Connect, the entry threshold for investors was relatively raised, and some retail investors with low risk tolerance were excluded from investing in overseas markets as much as possible.
(4) Settlement and depository
Investors of Hong Kong Stock Connect place orders on the Hong Kong Stock Exchange through mainland brokers designated by their A-share securities accounts and through the Securities Service Company of the Shanghai Stock Exchange (SPV company established by the Shanghai Stock Exchange for the Hong Kong Stock Connect business), and the daily net buying and selling amount is RMB/KLOC-0.05 billion yuan.
Although Hong Kong Stock Connect investors buy and sell stocks in Hong Kong stock market, they all quote in Hong Kong dollars, but mainland investors only need to pay in RMB, and the system will directly convert RMB into Hong Kong dollars according to the settlement exchange rate of the day. When investors in Hong Kong Stock Connect sell their positions in Hong Kong stocks, the system will directly deduct various fees from Hong Kong dollars and convert them into RMB at the settlement exchange rate of the day, and return them to the investors' A-share securities accounts.
China Clearing (Deng Zhong Company) is recognized as a clearing institution participant in Hong Kong settlement, collecting the transaction data of all participating securities firms in China settlement, clearing data with Hong Kong Clearing and Hong Kong Stock Exchange, and providing settlement services for Hong Kong Stock Connect.
Hong Kong Stock Connect is the securities account designated by investors for Shanghai A-share trading, and it is also the Hong Kong Stock Connect depository account of investors. The biggest highlight of this Shanghai-Hong Kong Stock Connect scheme is this settlement and depository method. Compared with the past, domestic investors have to secretly transfer their funds overseas, and individual investors with a slightly larger amount of funds are also subject to the exchange limit of $50,000 per person per year. It is more troublesome to return funds to China, and if the amount is slightly larger, it will face the inquiry of SAFE. The settlement method of Hong Kong Stock Connect has undoubtedly solved the great trouble of high-net-worth investors.
(5) Market information
In terms of market information, the exchanges of the two places initially consider exchanging the first market (the best buying and selling order), covering the stock range of Hong Kong Stock Connect, with a refresh frequency of 3 seconds. Considering that HKEx is a listed company, ordinary investors in Hong Kong can't get free real-time quotations without paying separately, and ordinary investors in the Mainland can only get a limited number of traders' clicks when opening accounts in Hong Kong. Although this market information condition is not better than that of A-share investors in the initial stage of the pilot, it is also a concession of HKEx compared with the struggling retail investors in Hong Kong (socialism is still good).
The above simple summary and analysis are the main differences between Hong Kong Stock Connect and ordinary Hong Kong stock trading. Of course, there are some differences in details. I won't go into details today. After all, the system testing has not officially started, and many transaction details need to be improved. We will continue to follow the follow-up development of this business.