What is the impact of Shanghai Hong Kong Stock Connect on Hong Kong stocks?

1. Capital continues to flow into Hong Kong.

The most direct impact of the arrival of Shanghai-Hong Kong Stock Connect is the continuous inflow of overseas funds into Hong Kong. Because for overseas investors, they want to be able to enter the domestic market through Shanghai-Hong Kong Stock Connect; For mainland investors, they want to enter the Hong Kong market, and even more so, with the development of China, they will enter the international market.

Some analysts believe that for Hong Kong investors, there are more channels for direct investment in overseas markets, and many opportunities in overseas markets will distract their attention, so after the pilot is launched, blue chips with low valuation discounts in A-shares will face benefits in the short term, but they may not be able to get long-term support.

For mainland investors, the Hong Kong market is the first window for outward direct investment, and there are many high-quality companies that have not been listed in Shanghai and Shenzhen, and the attractiveness is self-evident.

2. The spread of A H shares is expected to be bridged.

Now the impact of Shanghai-Hong Kong Stock Connect has been slowly reflected in the market, but it is still difficult to judge in the short term. However, in the long run, Shanghai-Hong Kong Stock Connect has opened a precedent for capital circulation, and with the further opening of the capital market, overseas investment will also become possible. In such a situation, investors will have more choices, and the spread between A H shares will be expected to be bridged.

This also means that the relatively cheap large- and mid-cap** A-shares and the relatively cheap small- and medium-cap** in Hong Kong stocks will benefit.

Some experts said that the impact of Shanghai-Hong Kong Stock Connect on the Hong Kong market is two-way, on the one hand, there may be some downward pressure on the **H shares listed in both places but with a significant premium to A-shares, and on the other hand, some industry leaders of Hong Kong stocks may benefit. In addition, with the implementation of the Shanghai-Hong Kong Stock Connect system, the mainland's coverage of Hong Kong will also increase accordingly, and mainland investors will only pay more and more attention to Hong Kong stocks.

4. Realize the docking with the mainland capital market.

If the above is the most direct impact of Shanghai-Hong Kong Stock Connect, then the realization of docking with the mainland capital market is a far-reaching impact. Just as Wells Fargo Global Investment entered the mainland internet finance market at the time of the Shanghai-Hong Kong Stock Connect, more and more will be connected to the mainland capital market in the future.

The Shanghai-Hong Kong Stock Connect is part of the strategy of RMB internationalization and the opening up of China's capital market. Through the "Shanghai-Hong Kong Stock Connect", Hong Kong's financial platform can be used to realize the docking of the mainland capital market and overseas mature capital markets, narrow the differences between the two sides, and realize the problems that the domestic capital market is difficult to solve through its own development. At the same time, it also promotes the further deepening of RMB internationalization through the capital delivery between RMB and HKD.

It is estimated that Hong Kong stocks will be very hot.

The differences between Hong Kong Stock Connect and Hong Kong stocks are as follows:

1. Account opening conditions:

Hong Kong Stock Connect: A shares** account can only be opened if it meets the requirement of 500,000 yuan per day on 20 trading days and has more than half a year of trading experience.

2. Commission: (10,000 1).

Hong Kong Stock Connect: Domestic listed brokers, I know brokers, 10,000 percent, there is no minimum commission amount (there is no minimum 5 yuan limit for A shares).

Hong Kong stocks: direct trading, generally have a minimum commission requirements, brokers generally require a minimum of 50 Hong Kong dollars per transaction, and banks generally require 100 Hong Kong dollars per transaction (there are also 50 Hong Kong dollars).

3. Exchange: Hong Kong stocks: funds leaving the country generally need to charge a higher remittance fee, including telegraph fees, in addition to the handling fee (or exchange difference) of foreign currency.

Generally, a remittance is more than 100 yuan. The annual foreign exchange quota per person is 50,000 US dollars. If you exceed, you have to figure it out by yourself.

Hong Kong Stock Connect: Settlement according to the exchange rate of the day, there is an exchange rate difference (about 3% of the exchange margin is seized in advance, and the after-hours settlement is returned). There is no remittance fee.

However, if there is a short position during the trading period, you have to settle the foreign exchange once. The total amount of Hong Kong Stock Connect is 3 billion, which basically has no impact on individual investors.

4. Dividend tax:

Hong Kong stocks: directly open an account to buy Hong Kong stocks, if it is H shares (enterprises registered in the mainland), 10% dividend tax will be charged; If it is a Hong Kong or foreign-funded enterprise, no dividend tax will be charged, or it will be implemented according to the method of the country where the company is located.

Hong Kong Stock Connect: Whether it is H shares or non-H shares, it is 20% dividend tax.

5. Buying and selling targets:

Hong Kong Stock Connect: including finance, pharmaceutical, communications, technology, gaming, etc

6. Trading hours.

When the A-share market is closed, or when the Hong Kong stock market is closed, Hong Kong Stock Connect cannot be traded.

Direct investment in Hong Kong stocks, as long as Hong Kong stocks are not closed, is sufficient.

Extended Materials. About Southbound Connect.

1. Hong Kong Stock Connect refers to the fact that investors entrust members of the Shanghai Stock Exchange to declare to the Stock Exchange through the Shanghai Stock Exchange's ** trading service company, and to trade and trade on the Stock Exchange within the scope of the specified listing on the Stock Exchange**. Its scope is the constituent stocks of the Hang Seng Composite LargeCap Index of the Stock Exchange of Hong Kong, the Hang Seng Composite MidCap Index, and A+H share companies** of the Hong Kong Stock Exchange and the Shanghai **Stock Exchange**. The two parties can adjust the scope of investment targets according to the pilot situation.

In the initial phase of the pilot, the SFC required domestic investors to limit participation in the Stock Connect to institutional investors.

On November 11, China Construction Bank and Industrial and Commercial Bank of China became the first batch of settlement banks for the "Hong Kong Stock Connect" business, and were allowed to handle cross-border settlement of funds and foreign exchange for the "Hong Kong Stock Connect" business.

1. Investors who participate in the "Hong Kong Stock Connect" investment can run more diversified asset allocation and wealth management.

2. The opening of the "Hong Kong Stock Connect" business is convenient and fast. "Hong Kong Stock Connect" investors can use the Shanghai Stock Exchange RMB ordinary stock account to run transactions, without going to the Hong Kong market to open an account, which is convenient and efficient.

3. "Hong Kong Stock Connect" investors directly use RMB to run and settle with ** companies, avoiding the inconvenience of RMB entry and exit, and the investment is not subject to the foreign exchange settlement and exchange quota equivalent to 50,000 US dollars per person per year.

Shanghai-Hong Kong Stock Connect includes two parts: Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect, and you can check the list of Shanghai-Hong Kong Stock Connect** through the following channels:

Only those who meet the corresponding conditions can be included in the scope of the Shanghai-Hong Kong Stock Connect.

Shanghai-Hong Kong Stock Connect** includes ** within the following ranges**

1) Constituent stocks of the Hang Seng Composite LargeCap Index; (2) constituent stocks of the Hang Seng Composite MidCap Index; (3) H shares of A+H share listed companies.

The corresponding H shares of A+H shares listed on the Shanghai **Stock Exchange that are on the risk alert board** or suspended**, issuers that are also listed on a mainland** exchange other than the Shanghai ** Exchange, ** traded in currencies other than Hong Kong dollars on the Stock Exchange**, and those with other special circumstances recognized by the Shanghai **Stock Exchange** are not included in the Shanghai-Hong Kong Stock Connect**. With the approval of the regulator, the Shanghai ** Exchange may adjust the scope of Hong Kong Stock Connect**.

If the constituent stocks of the relevant index are adjusted due to the implementation of the constituent stocks of the relevant index, etc., and fall within the scope of the provisions of (1) above and do not fall within the scope of the provisions of (2), they will be transferred to the Hong Kong Stock Connect**. If an A-share company listed on the Shanghai ** Stock Exchange lists H shares on the Stock Exchange, or an H-share listed company lists A shares on the Shanghai ** Stock Exchange, or if the company lists A shares and H shares on the Shanghai ** Stock Exchange and the Stock Exchange on the same day, its H shares will be transferred to the Hong Kong Stock Connect after the end of the ** stability period and the corresponding A shares have been listed for 10 trading days. If the Hong Kong Stock Connect** is no longer within the scope of the above (1) or falls within the scope of the above (2) due to the implementation of the constituent stock adjustment of the relevant index, it will be transferred out of the Hong Kong Stock Connect**.

Northbound trading includes the following:

1) Constituent stocks of the SSE 180 Index; (2) Constituent stocks of the SSE 380 Index; (3) A-shares listed on the Shanghai ** Stock Exchange of A+H-share listed companies.

Listed companies on the risk alert board of the Shanghai **Stock Exchange (i.e., ST, ST** and delisting consolidation**), suspended listing**, foreign currency ** trading ** (i.e. B shares) and other special circumstances recognized by the Shanghai ** Stock Exchange are not included in the Shanghai-Hong Kong Stock Connect. Subject to regulatory approval, the SSE may adjust the scope of SSE Trading. If a company listed on the Shanghai Stock Exchange other than the Shanghai Stock Connect** falls within the scope of the above (1) and does not fall within the scope of the above (2) due to the adjustment of the constituent stocks of the relevant index, it shall be transferred to the Shanghai Stock Connect**.

If an H-share listed company is listed on the Shanghai ** Stock Exchange, or a company whose A shares are listed on the Shanghai ** Stock Exchange, or a company whose A shares are listed on the Shanghai ** Stock Exchange and the Stock Exchange on the same day, its A shares shall be transferred to the Shanghai-Hong Kong Stock Connect after 10 trading days and the corresponding H-share ** stabilization period has expired. If SSE Stock Connect** ceases to fall within the scope of (1) above or falls within the scope of (2) above due to the adjustment of the constituent stocks of the relevant index, it will be transferred out of SSE Stock Connect**.

Yes, Shanghai-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect are the same thing.

1.Northbound refers to investors entrusting Hong Kong brokers to report to the Shanghai Stock Exchange through a ** trading service company (SPV) established by the Stock Exchange, and to trade the Shanghai Stock Exchange within the prescribed scope of the listing**. Shanghai-Hong Kong Stock Connect refers to the establishment of a technical connection between the Shanghai ** Stock Exchange (SSE) and the Stock Exchange of Hong Kong ** (Hong Kong Stock Exchange), so that mainland and Hong Kong investors can trade and trade each other's exchanges within the specified scope through local ** companies or brokers**.

2.It is the same, it is connected by the Shanghai Stock Exchange and the Hong Kong Stock Exchange, and the Hong Kong Stock Connect and the Shanghai-Hong Kong Stock Connect are different in the trading channel. This is the complete opposite of Shanghai-Hong Kong Stock Connect.

Further information: 1. What does Shanghai-Hong Kong Stock Connect mean?

Shanghai-Hong Kong Stock Connect refers to the Shanghai** Stock Exchange and the Hong Kong Stock Exchange allow investors in the two places to be listed on each other's exchanges within the scope of the local ** company (or broker) trading regulations, which is the Shanghai-Hong Kong ** market trading interconnection mechanism.

The China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission jointly announced on the morning of the 10th that the ** trading under the Shanghai-Hong Kong Stock Connect began on November 17, 2014.

2. Pilot background.

The Shanghai-Hong Kong Stock Connect was officially approved by the China Securities Regulatory Commission (CSRC) on 10 April 2014 to launch a pilot scheme for the Stock Connect mechanism. The China Securities Regulatory Commission pointed out that the total quota of Shanghai-Hong Kong Stock Connect is 550 billion yuan, and the balance of individual investors' fund accounts participating in Hong Kong Stock Connect should not be less than 500,000 yuan, and it will take 6 months to prepare for the official launch of Hong Kong Stock Connect.

Prime Minister *** delivered a keynote speech at the Boao Forum on April 10, 2014. He pointed out that a new round of high-level opening up will be emphasized, of which the expansion of the service industry, including the opening up of the capital market, is an important aspect. He also said that after that, it will actively create conditions to establish a market interconnection mechanism between Shanghai and Hong Kong, and further promote the two-way opening and healthy development of the capital markets of Chinese mainland and Hong Kong.

At the same time, in the deeper integration with the international market, we will continue to improve the level and level of opening up.