As the U.S. -China political tensions are upgraded, Chinese companies listed in the United States have went to Hong Kong for the second list.However, from the perspective of the trading volume of these companies, the performance of the New York market is still obviously dominant.
The Wall Street Journal pointed out that according to DEALOGIC data, since Alibaba's milestone stock fundraising (IPO) in Hong Kong in Hong Kong in November 2019, 12 Chinese companies that have been listed in the United States have launched their second listing in Hong Kong.A total of $ 33.6 billion (the same below, about S $ 45.3 billion).Recently, a Chinese stock company that completed the second listing in Hong Kong is a search engine operator Baidu, and video application operators Caede C.
It is reported that the Hong Kong Exchange refers to these IPOs as "returning to Hong Kong stocks" in China.This type of transaction should have a series of benefits, for example, it can attract investors closer to these companies in culture and language, which may mean that they have higher valuations.Such listing transactions can also be used as an insurance method to prevent more risks of being kicked out of the US exchanges by Chinese stocks.
However, the return of the Chinese stock market has not transformed into a transaction boom in related Hong Kong stocks.Analysis of Dow Jones Market Data and FactSet data shows that for 10 Chinese stocks that have achieved second listing in Hong Kong, as of last Wednesday, their average daily transaction volume of Hong Kong stocks accounted for only their Hong Kong stocks and US stocks.About 12.5%of the sum of daily average transactions.In other larger companies such as Alibaba and NetEase, this imbalance is not so extreme, and for some Chinese stocks that return to Hong Kong stocks with smaller scale, this situation is very obvious.As of last Wednesday, NetEase's average daily transaction volume of Hong Kong stocks accounted for about 27.5%of its average daily transaction volume of Hong Kong stocks and US stocks.
Some investors who purchase such Hong Kong stocks have found that because they cannot find enough buyers in the Hong Kong market, they have to convert the Hong Kong stocks into the US deposit certificate (ADR) when they close their positions.
Zezhi, Managing Director of Hedie Fund Shibi Investment Management (Hong Kong), said that for funds with appropriate scale, it is difficult to trade stocks under such a low turnover.Qu Weizhi said that if the target company is listed in Hong Kong and the United States at the same time, he will mainly trade stocks in the United States, even if this means sleeping overnight.
Taking IWC as an example, the data center provider's average daily turnover has been about $ 100 million this year.In contrast, its average daily turnover of Hong Kong stocks is about $ 18 million.
Investors said that part of the reason for this phenomenon is that Hong Kong's transaction costs are higher.The relevant departments of the Hong Kong Special Administrative Region government levied a 0.1%stamp duty on the buyers and sellers of most stocks, and planned to increase the tax rate to 0.13%, which means that investors pay $ 13 for each purchase of $ 10,000 of stocks.The United States does not have stamp duty, so the US stock market is more attractive to investors such as high -frequency traders seeking fast trading stocks.
The Wall Street Journal revealed that another main reason for the weak transactions in Hong Kong's stock market is that most of the investors in mainland China were mostly rejected.None of these companies listed in the United States and Hong Kong were not included in the interconnection mechanism connected to the Hong Kong and Shanghai and Shenzhen Exchange.In recent months, the investment in the mainland has surged through this mechanism, and the funds south have also boosted the Hong Kong market, such as in early 2015.
InveSco Hong Kong LTD. Investment Director William Yuen said in the interconnection mechanism: "If there is no such mechanism, we will definitely lack a key investment group."It has improved, he believes that this is because the overall positions of investors will tend to move from the United States to Hong Kong.
Investors and analysts believe that this situation is unlikely to change quickly, because the mainland exchange hopes that companies will be listed on the mainland by issuing A shares by issuing A shares.
Pang Yan, director of the macro and strategic research of Huaxing Securities, said that in order to attract Chinese companies that listed in the United States, considering taking the A -share market as another listing place, Shanghai and Shenzhen Stock Exchange is unwilling to allow mainland investors to invest in Hong KongStocks for the second listed company, although some of them have reached an objective standard for being included in the interconnection mechanism.
Over the years, Chinese regulators are also worried that allowing enterprises to issue too many stocks may cause large -scale selling, for which they strictly control the IPO and other stock issuance.According to the regulatory agency, if more companies are listed and the fund pool remains unchanged, the overall valuation will decline if more companies are listed.
Allowing mainland funds to surge in Hong Kong's second listing stocks may have similar effects. District Weizhi said, and because a large number of companies planned to go public in Hong Kong, it was actually increasingly difficult to open the gate to the mainland.
A spokesman for the Hong Kong Exchange said that the Hong Kong Stock Exchange expects to further enhance the attractiveness and competitiveness of the Hong Kong stock market and discuss the possibility of this aspect with relevant parties in the future.
Fang Weichang, director of investment director of Ba Lingzhong and Hong Kong, said that from a historical point of view, the volume of a company's stocks often mainly comes from the first place of listing.He took the Standard Chartered Group listed in London and Hong Kong as an example.
Fang Weichang said that the recent second -listed company is mainly to eliminate the risk of delisting in the United States.However, he said that companies can also introduce new investors.He will still be optimistic about changes in the interconnection mechanism.
