Title: HKEX Zhou Xiaoyin: Hong Kong capital market is moving towards a securities market dominated by the new economy. Source: Caixin Network.
Zhou Xiaoyin, Senior Vice President of the HKEX Market Technology, said at the "Embrace the Greater Bay Area and move towards the 2020 Hong Kong Listed Company Development Summit and the 8th Hong Kong Stocks Top 100 Awards Ceremony" that there are many challenges and unknown factors in 2020, as well as many political and economic factors, but this is also a new opportunity. In this year, HKEX's three major strategies are: focusing on China, connecting globally, and embracing the world. Shanghai New World.First, as of the end of November, the total turnover of Hong Kong's stock market was HKD 29 trillion, surpassing the total of 2019. In addition, the total amount of funds raised in the primary market was USD 47 billion, making HKEX the second largest IPO fundraising center in the world and the fundraising center of biotechnology. At the end of November 2020, the market value of the Hong Kong stock market had reached HKD 47 trillion, up 21.6% from the end of last year's HKD 38.3 trillion. In addition, the daily turnover of HKEX in the first 11 months was HKD 128.4 billion, up 46% from last year's HKD 88.2 billion.
Zhou Xiaoyin pointed out that the Shenzhen-Hong Kong Stock Connect mechanism has been open for 6 years and has made great contributions to Hong Kong's capital market connecting with the mainland capital market. In 2020, the Shenzhen-Hong Kong Stock Connect also broke new records. The northbound turnover of the Shenzhen-Hong Kong Stock Connect reached HKD 20 trillion this year, plus the total turnover of the stock market, which reflects the world's attention to China's market, especially the A-share market onshore.
Zhou Xiaoyin stated that the Shenzhen-Hong Kong Stock Connect will undergo major reforms and will include the Shanghai Stock Exchange Science and Technology Innovation Board in the scope of investment in the northbound direction. If the criteria are met, the southbound direction will also include biotechnology stocks (including unprofitable biotechnology stocks) in the scope. The southbound direction is constantly reaching new highs, which is very relevant to the sudden rise of new economic features in the Hong Kong stock market in recent years. Under the epidemic, new technology has brought us convenience, especially the Hong Kong stock market has also risen, which conforms to the direction of China's "technology + consumption" upgrade.
Zhou Xiaoyin said that since the end of 2014 when the Shanghai-Hong Kong Stock Connect was opened and the end of 2016 when the Shenzhen-Hong Kong Stock Connect was opened, mainland investors have made greater contributions to investing in the Hong Kong market, and also provided a new group of investors for the listed companies in the Hong Kong capital market - mainland investors. Under this mechanism, it is believed that more mainland investors will pay more attention to the Hong Kong stock market in the future.
Zhou Xiaoyin revealed that the Shenzhen-Hong Kong Stock Connect will undergo major reforms, including the Shanghai Stock Exchange Science and Technology Innovation Board being included in the scope of investment in the northbound direction. If the criteria are met, the southbound direction will also include biotechnology stocks (including unprofitable biotechnology stocks) in the scope. The southbound connection is constantly reaching new highs, which is very relevant to the sudden rise of new economic features in the Hong Kong stock market in recent years. Under the epidemic, new technology has brought us convenience, especially the Hong Kong stock market has also risen, which conforms to the direction of China's "technology + consumption" upgrade.
Zhou Xiaoyin also stated that in the first half of the year, new economy companies accounted for nearly 60% of the total amount of Hong Kong's new IPOs, and the amount of funds raised from listing increased by 61% compared with the same period last year. In addition, the proportion of new economic companies in the average trading volume of the stock market is constantly increasing, and it has now risen to 22.8%. This also represents a very significant reform of the Hong Kong stock market, which is moving towards a securities market dominated by the new economy. In the past five years, the Hang Seng Technology Index has performed far better than the Hang Seng Index and the National Index, and the technology index may become a new flagship index in the future. Chinese concept stocks returning to Hong Kong from the US have also become an indispensable force and occupy a very important position in the high-tech index of the Hong Kong stock market.
"In terms of risk management, HKEX has timely withdrawn futures and options in various Asian markets, including MSCI futures and options, which is a big shift for HKEX. We have officially moved from a regional exchange to a global exchange. Our 37 futures have linked to the most representative emerging markets in Asia. In the future, we will also use this as a work focus. Hang Seng Technology Index options and futures were launched this year, which is a good investment and hedging tool for overall technology companies," said Zhou Xiaoyin.