Recently, the Hong Kong new stock market has occurred frequently, and after the National Day,Master Lu (03601.HK) $Leading the way, Hong Kong stocks started a crazy rhythm. Such asInternational Yongsheng Group (08441.HK) $It rose 78.13%.$Odema (08418.HK) $It rose 93.75%, and Lu Master rose 218.52%.

However, when investors were talking about the profitable effect of the gratifying rise in Hong Kong's new shares, the two new shares listed on October 24 immediately changed their faces, one of which fell by more than 30%. Therefore, for the popularity of new shares in the Hong Kong stock market, what potential investment risks should investors pay more attention to?

Yang Liuming, a special expert at Futu Securities, pointed out two points in the sharing of "Singularity School":

1、AThere are great differences between Hong Kong stocks and Hong Kong stocks in terms of winning rate, rise and fall, entry threshold, issuance mechanism, pricing and so on.

2、Risk tips: avoid new financing, do not speculate in the new, must choose a good securities firm, overseas capital safety first.

The following is the main content of sharing:

一、What is the difference between the new skills of Hong Kong stocks and A shares?

There is a big difference between A shares and Hong Kong stocks.

First, the success rate of Hong Kong stocks is much higher than that of A shares. Data show that from September 21, 2017 to now, the success rate of Hong Kong stocks is about 60.95%, while that of A shares is usually only about 0.34/1000.

Second, the rise and fall, statistics in the past more than 300 listed companies, the average first day increase of about 13.88%. Compared with A-share innovation, it is also quite considerable.

Third, the threshold for entry, A shares are newly adopted by the market capitalization placement system, usually T2 days (including) the first 20 trading days to hold 10,000 yuan of A shares market value can be applied for new shares. However, Hong Kong stocks have an average of 3963 yuan per hand, and they can participate if they put HK $10, 000 in their account.

Fourth, the issuing mechanism, there is a certain difference between the issuance of Hong Kong shares and the issuance of A-shares. First of all, there is a clawback mechanism for the purchase of new shares in Hong Kong. According to paragraph 4.2 of the 18th application guidelines of the listing rules of the Hong Kong Stock Exchange, the new share offering is divided into two parts: public offering and international placement. The public offering is aimed at retail investors. In terms of the total issuance of a new share, the public offering accounts for at least 10% of the total issuance. If a new share is planned to issue 100 million shares, the minimum portion of the public offering is 10 million shares.

When the total subscription volume of retail investors reaches 15 times but less than 50 times the initial issue volume, the callback mechanism will be activated to call back from the international allotment portion to the public offering portion, and after the clawback, the public offering portion will increase to 30% of the total issuance volume. If a new share is planned to issue 100 million shares, the initial public offering portion is 10 million shares, and when retail investors apply for more than 15 times (more than 50 million shares) but less than 50 times (less than 500 million shares) The international placement portion will be refunded to the public offering portion, which accounts for 30 per cent of the public offering portion (30 million shares).

When the total retail subscription reaches more than 50 times but less than 100 times the initial offering volume, it will be dialed back from the international placement portion to the public offering portion, which will be increased to 40 per cent of the total issuance volume.

When the total retail subscription reaches 100 times or more of the initial issue, it will be dialed back from the international placement to the public offering, and after the callback, the public offering will increase to 50% of the total issuance.

For retail investors who apply for new shares, when they encounter hot stocks, they certainly hope to call back as much as possible, because the more callbacks, the easier to win the lottery, and only hot stocks can make a lot of money. But for some half-hot new shares, starting the clawback mechanism is a nightmare for retail investors, especially in the range of 15 to 50 times oversubscribed, public sales will be reversed from 10% to 30%, and retail holdings soar, which is not conducive to stock price performance on the first day of listing.

The premise for retail investors to participate in the new market of Hong Kong stocks and make a profit is to win the lottery. The mechanism of the HKEx can ensure that retail investors can enter the market and ensure a certain success rate. The winning rate usually refers to the first hand, and the winning rate may be 60%. If you apply for enough purchases, the probability of winning the lottery will also increase.

As shown in the chart, 25% of the shares issued by the company are new shares and 75% are old shares. 25% of the new shares are divided into two parts: international placement (90%) and Hong Kong public offering (10%). Of these, 10% of the Hong Kong public offerings are divided into Group An and Group B. Group A refers to retail investors, and when Group An applies for enough money, it will allocate a portion to Group A from 90% of the international placement. Group B refers to large households with a subscription quantity of more than HK $5 million. When the subscription funds are sufficient, you can enter the international placement, so you will have the opportunity to reconcile a certain subscription share with the brokerage.

Secondly, Hong Kong stocks introduce cornerstone investors (cornerstone investors), mainly some first-class institutional investors, large enterprise groups, as well as well-known tycoons or their affiliated companies. The introduction of cornerstone investors is actually an affirmation of the company's fundamentals and development prospects, which brings a lot of confidence to the market.

Cornerstone investors are generally introduced as long-term investors, which helps to attract the attention of more ordinary investors. However, the threshold for participation of cornerstone investors is relatively high.

In addition, there are some differences in the pricing of new shares. A shares, including the main board, small and medium-sized board and gem, usually use restricted pricing, that is, 23 times PE (price-to-earnings ratio) as the pricing ceiling, while Science and Technology Innovation Board and Hong Kong shares are market-oriented pricing, that is, brokers, investment banks, listed companies and other agreed issuance prices.