Source: Brokerage China Author: Qu Hongyan Recently, China Yangtze Power hit a historical high and once again showed the slow bull stock trend of "tripling in ten years". The slow bull market has left behind many passers-by and brought good returns to the steadfast investors. It is "rare for those who triple in one year to be like carp jumping over the dragon gate, while those who double in three years are few and far between." On the other end of the investment world, however, violent collapses are also deafening, with many financial products suspected of "Ponzi schemes" ceasing payments, leaving investors with no hope of recovering their investments. Both positive and negative cases illustrate the importance of forming a suitable mentality towards money in one's lifetime; otherwise, sooner or later, you will divorce yourself from your money. "I call this the money mind, a person's IQ can reach 120, 140, or even higher levels, and perhaps some people's minds are good at doing one thing, while others are good at doing another. They can do things that most ordinary people can't do. But I know some very smart people who make very foolish decisions because they lack the money mind." Buffett once said so. The so-called money mind refers to believing in common sense, believing in compound interest, being cautious and rational, thinking independently, prioritizing security over return, not dealing with people with questionable character, not easily guaranteeing for others, not believing in windfall profits, and not trying to cross legal norms for extra benefits. In today's world of ubiquitous information, everyone's wealth may become the "prey" of those with ulterior motives. Only with the money mind, can one form good behavior habits and shield oneself from separating from one's wealth. Do not entrust your wealth easily. Wealth is easy to lose but hard to accumulate, and trust is a vital reason leading to the rapid loss of wealth. "Do not allow anyone else to manage your business unless you can watch their every move closely and understand their behavior; or you have strong reasons to believe in their character and ability. For investors, this criterion determines when you can let someone else make investment decisions for you." Graham's criterion written eighty years ago is so clear. Almost all the investors who lost their wealth in the financial products have violated the above two criteria. They did not have the ability to closely supervise the whereabouts of their funds, nor did they have sufficient reasons to believe in the character of the product issuers. They easily invested their own wealth solely based on others' glib tongue and a piece of commitment paper. They did not act as gatekeepers of their own wealth and ended up with nothing left even if the government punished the wrongdoers. "An ounce of prevention is worth a pound of cure." This is a phrase Munger often says. Destiny must be in one's own hands, and investors with a suitable money mind will try their best to find suspicious points in their investments to protect the safety of their principal. For example, whether the manager is trustworthy, whether the underlying assets are profitable, whether oneself can timely monitor the risks in the investment process, and whether the sales staff is obtaining large commissions. As long as any unreliable signs are found, these investors firmly will not invest their money. Do not desire to get rich quick. As in the capital market and anywhere else, making money is not easy, and desiring to get rich quick will lead to quick loss of wealth. In the capital market, the desire to get rich quickly often leads to investors over-allocating specific stocks, industries, or assets at the worst time. For example, buying high-risk stocks that can gain huge returns once an adventure succeeds, but the chance of success is very small, also known as "whispering stocks" by legendary fund manager Peter Lynch. "They often tell investors a story with explosive effects. These 'whispering stocks' have a hypnotic effect on people, and it is easy for you to believe that the story the company tells has an emotional appeal that can easily confuse you." This is like hearing a very tempting "sizzling" sound, making you salivate, but you did not notice that there is no steak on the grill. In the eyes of investors who lack the money mind, stable yield provided by blue chips such as China Yangtze Power cannot meet their demands. However, historical experience clearly shows that buying stocks lacking in safety solely based on imagined high yields is unwise. The long-term average investment return of general stocks is 9%-10%, which is also the average investment return of stock indexes in history, a benchmark to measure one's investment performance and the benchmark to measure fund investment performance.
Author: Yang Qin

On September 4th, the Hang Seng Index revised its rules to add a quick inclusion rule for the Hong Kong Stock Connect Index, targeting securities that qualify for southbound interconnection trading by converting from secondary listings to primary or dual primary listings.

This means that the company, which just completed a dual primary listing in Hong Kong at the end of August, will become the first beneficiary, with the potential to be quickly included in the Hang Seng Stock Connect Hong Kong Index series. $BABA-W (09988.HK)$ Group is expected to be a rapid inclusion in the Hong Kong Stock Connect Index series, making it the first rule beneficiary after completing its dual primary listing in Hong Kong at the end of August.

Addition of Quick Inclusion Rule

On September 4th, the Hang Seng Index revised its rules to add a quick inclusion rule for the Hong Kong Stock Connect Index, targeting securities that qualify for southbound interconnection trading by converting from secondary listings to primary or dual primary listings, effective immediately.

The newly added quick inclusion rule for the Hong Kong Stock Connect index includes:

Hang Seng Stock Connect Index, Hang Seng China (Hong Kong Listed) 25 Index, Hang Seng Stock Connect AI Theme Index, Hang Seng Stock Connect China Technology Index, Hang Seng Stock Connect New Economy Index.

This clearly indicates that Alibaba Group, which just completed dual primary listings on the NYSE and the HKEx at the end of August, will be the first beneficiary of the rules.

As long as Alibaba's market cap ranks among the top 10 of the existing constituent stocks on the first day of eligibility for mutual market access, it will be included in the index or specified separately in the next regular monthly review.

Inclusion in the Hang Seng Stock Connect is imminent.

Before the secondary listing in Hong Kong, Alibaba's market cap and trading volume have always been among the top three in the Hong Kong stock market. After the dual primary listing in Hong Kong, inclusion in the Hang Seng Stock Connect is just a matter of time.

According to the Hang Seng Stock Connect rules, securities must be listed on The Stock Exchange of Hong Kong Limited (SEHK) and meet certain market capitalization and liquidity thresholds. Stocks also need to meet certain free float market capitalization requirements and comply with listing time limits.

Currently, the Hang Seng Stock Connect has become one of the main sources of funds in the Hong Kong stock market. Alibaba's eligibility for the southbound mutual market access is almost certain. After its inclusion in the Hang Seng Stock Connect, it is expected to attract favor from southbound funds, attracting more investors from mainland China and improving liquidity and valuation levels.

Wind data shows that on September 4, 2024, the top three trading amounts in the Hang Seng Stock Connect were all over 1 billion yuan.

Top three trading amounts for Shanghai-Hong Kong Stock Connect (southbound):

1. CNOOC (00883), turnover of 18.21 billion yuan, net selling of 1.11 billion yuan.

2. Tracker Fund of Hong Kong, turnover of 15.45 billion yuan, net selling of 1.52 billion yuan.

3. Tencent (00700), turnover of 11.17 billion yuan, net selling of 0.235 billion yuan.

Top three turnover of southbound trading under Shenzhen-Hong Kong Stock Connect:

1. Tracker Fund of Hong Kong (02800), turnover of 22.08 billion yuan, net selling of 2.202 billion yuan.

2. China Ocean GP (00883), turnover of 14.2 billion yuan, net selling of 0.111 billion yuan.

3. Tencent (00700), turnover of 9.63 billion yuan, net selling of 0.235 billion yuan.

Editor/rice