How Will The Opening Of Shenzhen Hong Kong Tong Affect The Mainland Market?

In October 8th this year, the Shenzhen finance office announced some measures recently issued by the China Securities Regulatory Commission and the CIRC to support the reform and innovation and development of Shenzhen (Qianhai) capital market and insurance industry. Among them, the "Shenzhen Hong Kong Tong" and "Shanghai FTA financial support policy" landed in Qianhai were formally included in the support area, and Qianhai financial innovation ushered in a new development opportunity.

In fact, the concept of Shenzhen Hong Kong Tong has been mentioned last year.

In July 2013, Xiao Yafei, director of the Shenzhen finance office, said that he would try to buy Hong Kong and Shenzhen mutual financial products and sell each other. When the conditions were ripe, exchanges between Shenzhen and Hong Kong would be realized. In August 26th this year, Shenzhen officials at the Qianhai financial innovation policy presentation conference said that "Shenzhen Hong Kong Tong" has been submitted for approval. Regretfully, during the ensuing time, relevant insiders refuted the rumor. However, through this incident, it has also stressed that the time of Shenzhen Hong Kong Tong's opening to traffic has been getting closer and closer.

What will be the impact of the "opening" of Shenzhen Hong Kong Tong on the mainland market?

In fact, I believe that the biggest impact of Shanghai Hong Kong pass or Shenzhen Hong Kong pass is to give more new liquidity expectations to the market. In addition, the trading system and transaction time of the two markets are not consistent. At this point, with the opening of Shanghai and Hong Kong through the Shenzhen and Hong Kong links, the transaction mode of the two markets will accelerate.

If we analyze from the perspective of investors, the opening of Shenzhen Hong Kong Tong will affect the way of operation of investors.

Incomplete data statistics For now, the average price earnings ratio of Shanghai stock market is 9.51 times, and Shenzhen market is 23.54 times. As for the Hong Kong stock market, the average price earnings ratio is between 10-12 times.

Obviously, according to the above data, there is little difference between the Shanghai Stock Exchange and the Hong Kong stock market in terms of price earnings ratio, and it can also play a certain boost effect on the relevant undervalued varieties in Shanghai stock market, thereby reducing the two cities in Shanghai and Hong Kong. market The difference between prices. However, for the Shenzhen market, if the Shenzhen port is "open to traffic", it will have a certain impact on the valuation of the market, especially some of the junk stocks that have been severely criticized.

It is worth mentioning that the stock structure of Shenzhen Stock Exchange and Hong Kong stock market does not tally with each other. In the deep market, junk stocks occupy a certain proportion. The hype about junk stocks in the mainland market has become a big joke in the global market.

However, in the past years of A share market, the speculation of junk stocks has become a major highlight in the market, and the stock market is a typical representative of the undead. Moreover, listed companies have been highly protected by local governments with their unique shell resources. Thus, the myth of "crow changing Phoenix" has been staged many times. Obviously, this undoubtedly distorts the traditional concept of value investment. At the same time, it has also contributed to price speculation in a way.

At this point, with the further development of Shenzhen Hong Kong Communications, the mature mechanism of Hong Kong stock market will gradually be introduced into the mainland market, and the relevant system will also become more stringent. In the future, many losses or ST listed companies will be hit hard in the Shenzhen market.

In addition, recent domestic management layer We will speed up the implementation of the registration system for stock issuance and intend to roll out the registration system at the end of this year. The core of the stock issue registration system is to reduce the entry threshold of enterprises, distribute them in batches, and let the market decide the life and death of enterprises, thus greatly reducing the value of shell resources. At that time, the blow to the listed companies of loss or class ST can be exacerbated.

In fact, the realization of the survival of the fittest is the focus of the development of the mainland market in the future. Obviously, both Shanghai and Hong Kong through Shenzhen Hong Kong pass or stock issue registration system, they all have one thing in common, that is, further promote the value of investment in the mainland market concept, so that some of the garbage enterprises lose the soil of survival.