Is it cost-effective to use Southbound Connect to buy Hong Kong stocks in 2023? Mainland investors who want to invest in Hong Kong stocks have two methods: opening a Southbound Connect account, or looking for a securities company in Hong Kong to open a Hong Kong stock account. Hong Kong stock securities accounts can trade all Hong Kong stocks, but Southbound Connect
There are restrictions on tradable Hong Kong stocks. Is it cost-effective to buy Hong Kong stocks through Southbound Trading?
In order to solve your doubts, we have prepared relevant content for your reference: Is it cost-effective to buy Hong Kong stocks through Southbound Trading?
What does stock trading volume mean?
Stock trading volume represents the number of stock transactions, and trading volume is a representative of stock popularity. The larger the trading volume, the more investors participate in stock trading. On the contrary, the smaller the trading volume, the fewer investors participate in stock trading. Generally, the trading volume
It is better if the volume and stock price run simultaneously.
Can stocks be bought when trading volume increases?
An increase in stock trading volume may not necessarily lead to buying. Investors should consider whether to buy based on the position of the stock. Generally speaking, if the stock has increased volume at a low level, then investors can consider buying. This situation is most likely caused by the main force attracting funds.
If the stock is increasing in volume on the way up, you can decide whether to buy based on factors such as stock price, performance, policy, news, etc.; if the stock is increasing in volume at a high level, then it is not recommended to buy. The increase in volume is most likely caused by the main force shipping.
In addition, it is generally better for trading volume and stock price to run synchronously. When the stock price rises, the trading volume increases, and the probability of the stock rising subsequently is greater. When the stock price rises, the trading volume does not increase or the stock price does not rise. If the trading volume increases, the stock will subsequently rise.
The probability of falling is extremely high.
1. Is there a limit on the subscription quota for new shares?
When investors subscribe for new shares, there is a quota limit.
According to the regulations of the Shanghai and Shenzhen Stock Exchanges, investors who subscribe for new shares need to calculate the subscription quota based on the average daily holding market value in their securities accounts for the 20 trading days before T-2 (T is the online subscription day) (including T-2).
, but investors need to hold 10,000 or more stocks in Shanghai or Shenzhen stock markets for 20 consecutive trading days to qualify for new trading.
The Shanghai Stock Exchange stipulates that for every additional 10,000 yuan in market value of Shanghai-listed stocks, investors can subscribe for one unit, and the portion less than 10,000 yuan will not be included in the subscription quota.
Each subscription unit is 1,000 shares, and the subscription quantity shall be 1,000 shares or an integral multiple thereof, and shall not exceed one thousandth of the initial number of shares issued for new shares, and shall not exceed 99.999 million shares.
The Shenzhen Stock Exchange stipulates that for every additional 5,000 yuan in market value of Shenzhen stock stocks, investors can subscribe for one unit, and the portion less than 5,000 yuan will not be included in the subscription quota.
Each subscription unit is 500 shares, and the subscription quantity shall be 500 shares or an integral multiple thereof, and shall not exceed one thousandth of the initial number of new shares issued, and shall not exceed 99.999 million shares.
2. Can I win the lottery if I apply for the top ticket?
The investor's top-price subscription means that the investor subscribes according to the maximum amount that he or she can currently subscribe for.
However, even for top-tier subscriptions, investors have a low probability of winning the lottery. They are not guaranteed to win. The probability of success is only about 40,000.
For example, if an investor holds a stock position on the Shanghai Stock Exchange for 12 out of 20 trading days and the market value is 100,000 yuan, then the average daily market value of the stock is (12__10)/20=60,000 yuan. The investor can subscribe for 1,000__6
=6000 new shares.
Although investors subscribed for 6,000 shares, because Shanghai and Shenzhen A-shares allocate new shares by lottery, investors may be lucky and win 5,000 shares, or they may not win the last share.
1. Which Hong Kong stocks can be purchased through Southbound Trading?
The stocks currently available for investment in Southbound Trading include: ① component stocks of the Hang Seng Composite Large Cap Index; ② component stocks of the Hang Seng Composite Mid Cap Index; ③ H shares of A+H-share listed companies listed on the Shanghai Stock Exchange.
However, the subject of Southbound Trading is not static. It is adjusted every six months. Investors who have been removed from the subject of Southbound Trading will no longer be able to buy the stocks through Southbound Trading, but the stocks they originally held can continue to be sold through Southbound Trading.
out.
The stocks within the investment scope of Southbound Trading are all relatively high-quality stocks in the corresponding fields, which can better protect the safety of mainland investors' funds and reduce the risks of investing in Hong Kong stocks.
2. Is it cost-effective to buy Hong Kong stocks through Southbound Trading?
If investors have a large amount of trading funds, it is very cost-effective to trade Hong Kong stocks through Southbound Trading.
Because Hong Kong Stock Connect account transactions are not restricted by the foreign exchange limit of US$50,000 per person per year, investors can conduct large transactions more freely.
At the same time, the entry threshold for Southbound Trading is relatively high.
Investors who want to open a southbound trading account must meet the requirement of own assets of no less than RMB 500,000 on the previous trading day. Own assets include cash, stocks, market value of on-market funds, margin trading and securities lending, etc.
If investors have insufficient funds, it is not cost-effective to open Southbound Trading for trading.