U.S. stocks were out of stock on National Day, and Hong Kong stocks continued to consolidate on the first trading day of July. Stocks that rose a lot in the previous month, such as the Hong Kong Stock Exchange (388), pulled back sharply.
The Hang Seng Index speculated that leaders visited Hong Kong. After the good news, it encountered resistance at 22,000 points. Financial stocks that rose a lot in this wave will all pull back. The Hong Kong Stock Exchange’s “ETF (Exchange Traded Fund) Interaction” regained the 400 yuan level, but it could only last for one day. Exchange-traded funds are easy to buy and sell, and have gradually become an important way of fund investment. However, the volatility of such products is relatively small, the trading is not as good as that of individual stocks, and the stimulation is difficult to compare with policies such as “Hong Kong Stock Connect”.
Since mainland state-owned enterprises have been listed in Hong Kong, the stock markets of China and Hong Kong have become increasingly closely related. With the implementation of the most important arrangements one after another, the policy incentives have become lessened, and the central government is currently very cautious about the flow of funds. Promotion is still not easy, so the market reaction is not particularly exciting.
It is not easy to raise funds for the listing of Chinese concept stocks
After the new government came to power, some guild members proposed to expand the use of RMB in Hong Kong, including increasing the inflow of RMB into Hong Kong under the closed-loop situation, and then returning to the mainland to cooperate with the policy for investment. Such ideas are expected to create a win-win situation, not only increasing the importance of Hong Kong as an offshore RMB center and increasing opportunities in the financial industry, but also assisting in the internationalization of the RMB and mobilizing mainland funds, but it is believed that it may not be realized in the short term.
As a financial center, Hong Kong has its unique role, but it will take more and more effort to maintain its position, and the base is large, so it will not be easy to see results. With the return of China concept stocks, Yesterday, China Concept Stock Financial OneConnect (6638) was listed in the form of introduction. The so-called introduction form does not involve fundraising, which somewhat shows the weakening of the fundraising function of the return of China concept stocks.
OneConnect was listed on the New York Stock Exchange at the end of 2019 at an issue price of US$10 per share, much higher than the closing price of 5.4 yuan yesterday. Based on this calculation, OneConnect Financial has fallen by more than 90% from its initial IPO price. Previously, OneConnect has carried out stock repurchases many times, and the company’s management has also stated many times that its stock price and market value in the United States are seriously underestimated by the market. .
After the listing of OneConnect, although revenue has continued to grow and losses have continued to decrease, the company has not yet achieved profitability on an annual basis. On April 12 this year, a number of Chinese stock companies, including OneConnect, were included in the fourth batch of “pre-delisting” list by the US Securities Regulatory Commission. In response, OneConnect announced that the company has been actively exploring possible solutions, including dual listing, to best protect the interests of its stakeholders.
Under the U.S. Foreign Controlled Company Accountability Act, if a company is confirmed by the SEC for three consecutive years as the Public Company Accounting Oversight Board (PCAOB) fails to inspect audit work documents related to the company, the company will be charged from the U.S. Delisting from the stock exchange.
Judging from the business nature of OneConnect, the company mainly provides financial technology services, which should have certain potential. However, because there is no moat for profit distribution, and because of the impact of US policies, listing in Hong Kong has the meaning of refuge, so it is difficult to be an emperor. The debut will naturally have no boost to the stock price of the Hong Kong Stock Exchange, but if you are optimistic about the Chinese financial stocks, some people will consider buying a cold stove.
The concept of A-share fried pork raises a rising tide
Hong Kong stocks opened lower yesterday, but A shares opened lower and higher, which narrowed the decline of Hong Kong stocks. The Shanghai Composite Index rose 3,400 points to close at 3,405 points, up 17 points; the Shenzhen Composite Index closed at 13,026 points, up 165 points; the ChiNext Index closed at 2,834 points, up 52 points. To the plate lifted the limit tide.
After the Hang Seng Index opened lower yesterday, it fell sharply by more than 400 points in the early part, and then bottomed out and rose. The Hang Seng Index closed at 21,830 points, down 29 points; the State-owned Enterprises Index closed at 7,647 points, down 19 points; the KSE Index closed at 4,884 points, up 19 points. At 13:00, the transaction amounted to 131.4 billion yuan.
Blue-chip stocks rose 30 and fell 39. WuXi Biologics (2269) in the biotechnology sector rose 8% to close at 77.55 yuan, the best performing blue-chip; Sunny Optical (2382), a popular smartphone camera lens supplier, tumbled 6.6% % to close at 119.5 yuan, making it the worst performing blue-chip stock. The Hong Kong Stock Exchange, which rose sharply before the holiday, fell 3 percent to close at 374 yuan.
Biotechnology stocks performed well across the board. Rongchang Bio (9995) surged 15.4% to close at 50.7 yuan. Technology and Internet stocks rose in general. Morgan Stanley believes that Meituan’s food delivery business still has a strong competitive advantage, and reiterated that the stock is the top choice for China’s Internet stocks. Meituan opened higher and moved higher. Meituan closed at 201.2 yuan, up 3.6%.
The AI leader Shangtang opened lower and moved lower, and once plunged by more than 20%. The management expressed its commitment to extending the lock-up period of shares for 6 months. The stock fell by more than 46% last Thursday, and closed sharply by 19% yesterday, closing at 2.54 yuan. Shang Tang is now in a slump, and it is unknown whether it can stop the bleeding.
Hitoshi Rikuha
