After Lufax Holding, XIAOMI, Ant Financial Services Group, iQIYI, Inc. and even Saudi Aramco launched "one share, different rights" on the Hong Kong Stock Exchange, giants in various fields have taken Hong Kong as their first stop to land in the capital market. After a century of ups and downs, the Hong Kong stock market has once again ushered in a "great era". In such a "great era", the Hong Kong stock market for new shares is also booming. New economic stocks are highly sought after by investors in Hong Kong's primary market and are hundreds of times oversubscribed. How can we enter the Hong Kong stock market which is 100 times oversubscribed?.

The innovation process of Hong Kong stocks usually includes the following steps:

Hong Kong stock market innovation can also be roughly divided into four steps, the first is to understand the information of new shares, the second is to submit an application, the third is to learn about the subscription results, and the fourth is to sell after successful subscription. The following article will focus on the specific operation and matters needing attention of each step with Niu friends.

一、Learn about new shares

Before subscribing, the information we need to know is mainly two aspects, one is the difference between Hong Kong shares and A shares, and the other is the disclosure of new shares.

• The difference between Hong Kong shares and A shares

Subject difference:The first difference between Hong Kong shares and A shares is that they play new players. Shares listed on Hong Kong's main board are a combination of international placement and public subscription, and international placement is the part that is sold directly to large institutional investors. In general, 40% of A shares are sold online, so the new main body of Hong Kong shares is institutions, while A shares are retail investors.

Probability of winning lottery:The Hong Kong stock market gives special treatment to retail investors in applying for new shares. When large blue chips are issued, priority is given to one lot for each household, and when other small and medium-sized stocks are issued, small-capital retail investors are divided into separate groups to draw lots. Therefore, the success rate of Hong Kong new shares application for new shares is very high compared with A-shares.

Profit probability:Unlike the A-share market, which is basically equal to profit, participating in the purchase of new Hong Kong shares is not a sure bet, and the probability of breakage in the listing of Hong Kong stocks is much higher than that in the A-share market.

• Disclosure of new shares themselves

First of all, the official channel for new shares to release listing-related information is, of course, the HKEx. Since October 2013, the HKEx requires applicants of newly listed companies to publish the application version and post-hearing information set on the HKEx's "easy Disclosure" website in a timely manner, so as to facilitate investors to download it. Investors can also consult the above-mentioned information on the "easy Disclosure" website.

The information disclosed includes the prospectus, which is an important basis for investors to make investment decisions. A well-documented prospectus usually includes, but is not limited to, the following information: expected schedule, industry overview, company business, management information, risk factors and financial information. Through the prospectus, we understand the industry prospects and the company's share, past earnings performance, the situation of its products or services, the use of the funds raised and fully consider the risk factors, so as to decide whether to subscribe for the new shares.

Although it can be queried on the Disclosure easy website, the operation process is a bit complicated. Futuo Niuniu APP can also see the information of new shares in the IPO module, the IPO process, basic information, cornerstone investors, sponsors, underwriters, etc., in the quotation column, and the original interpretation of IPOs in the information column to help investors better understand the company and make investment judgments.

In addition to the company's fundamental information, we should also pay attention to the cornerstone investors and sponsors of new shares. Cornerstone investors mainly refer to first-class institutional investors, large enterprise groups, as well as well-known tycoons or their affiliated enterprises, which can endorse the underlying listing. Cornerstone investors generally subscribe for a larger share of new shares in international placement and need to promise to lock up for 6-12 months after listing, which is also publicly disclosed in the prospectus. As a result, the share prices of listed companies that can be recognized and invested by cornerstone investors usually do not perform badly. To put it simply, the sponsor is the recommendation and guarantor of the listed company. As sponsors advance and retreat together with them in the process of listing and share legal liability, sponsors naturally prefer companies with good performance in order to reduce risk. In the process of innovation, we can also refer to the sponsor's historical performance to judge whether to invest or not.

2. Submit an application

It is necessary to open an account with a securities firm and transfer funds before submitting an application for new shares.

At present, there are four ways to subscribe: White form, yellow form, online and telephone. Like A shares, at present, the vast majority of new shares in the Hong Kong stock market are purchased online, but they still retain the traditional way of applying in kind, that is, the "yellow form" and "white form" with the characteristics of Hong Kong stocks. Investors need to download the yellow form or white form on the Hong Kong Stock Exchange, fill in personal information and purchase new shares on the form, and send them to the business department of the brokerage to participate in the purchase of new shares. The differences between several different subscription methods are as follows:

To apply for new shares, of course, there must be a sufficient admission fee, that is, the funds needed to apply for first-hand purchase. There will be a highest and lowest price for Hong Kong shares to issue new shares. If the subscription funds are much larger than the issuance volume on the day of the announcement, the subscription funds will be priced at the highest price, while insufficient subscription funds will be priced at the middle or lowest price.

Investors who have opened "margin accounts" in banks can use the amount of financing provided by banks to make leveraged investments, magnifying returns and increasing the probability of winning lots at the same time. Securities firms or banks charge a certain amount of interest to provide such services to investors. On the one hand, due to the low interest rates in the Hong Kong market, on the other hand, the subscription of new shares can increase financing by up to 9 times, and this business is also hot when hot new shares are listed. However, due to the risk of Hong Kong stocks playing new, margin playing new risk is large, we need to be cautious.

In terms of fees, in addition to the funds for applying for new shares and conventional stock trading fees, subscribing for new shares also requires a certain handling fee, including 1% brokerage commission, 0.0027% SFC transaction levy, 0.005% SEHK transaction fee, a total fee of 1.0077% (excluding additional fees levied by brokers). The brokerage commission here is for the shares applied for and won the lottery. In other words, no matter whether you apply for 1 million shares or 10, 000 shares, as long as you win 10, 000 new shares, you will only charge a handling fee of 100. In addition, unlike A-share refreshments, Hong Kong stocks can be modified or withdrawn before the application deadline for new shares, free of charge.

3. Learn the subscription result

Generally speaking, the share transfer office of the newly listed company will first screen out the application form which has been repeatedly submitted, incomplete or incorrectly completed, and then multiply the number of valid applications by the initial allocation ratio (final issue / total valid application) to obtain the number of shares allocated to the application.

The number of applications for subscription will be divided into different components according to the comparison table of the payment table in the application form. in the event of oversubscription, the newly listed company shall use the subsidy mechanism to transfer shares from the placing part (if there is an placing part) to the public subscription part to increase the number of shares in that part, and by reducing the allocation ratio of larger components, increase the allocation ratio of smaller components, as far as possible to ensure that each applicant is allocated at least first-hand shares. If the number of shares available for each component is still less than the total number of subscriptions, it shall be dealt with by drawing lots.

On the date of the announcement of the allocation results stipulated in the prospectus, investors can search for the new share allotment results of the relevant companies from the "announcement of listed companies" on the "Disclosure easy" website, or they can inquire from the relevant share transfer places. in addition, the vast majority of newly listed companies will also publish the results of new share allotments on their own websites.

In addition to the query results of the "Disclosure easy" website, users who subscribe for new shares in Futu Securities can go to the Futu Niuniu App[information]-[system message]Get the subscription result

On the day of the announcement of the allocation results, the share transfer Office will send a stock certificate by ordinary mail to white form applicants who have successfully subscribed for shares. if investors subscribe in large amounts and exceed the specified number of shares, they may choose to collect them at the share transfer office. For investors who subscribe for shares through yellow form or electronic subscription, the new shares successfully subscribed will be deposited into the investor account of the central clearing system, or the designated securities company will deposit the new shares into the investor's stock account on the same day in the form of mailing accounts.

IV. Sell after subscription

After winning the lottery, investors can sell in the dark market (16:15-18:30 on the trading day before listing) and at the right time after listing. Investors need to look at the fundamentals to decide whether to sell in the dark market or after listing.

Companies with good fundamentals will attract large purchases from institutional investors, triggering a rise in share prices. However, because the dark market is the day of internal trading by investors of various brokerages, the liquidity is relatively poor, and the cost of large purchases on the dark day will be higher, coupled with the fact that there is only one trading day between the dark market and the first day of listing. Institutional investors will be more likely to buy on the first day of listing. As a result, companies with good fundamentals usually have higher first-day share prices than dark ones, and vice versa, companies with poor fundamentals usually have lower first-day shares than dark ones.

Corresponding to the trading strategy, it is recommended that companies with good fundamentals sell after listing, while companies with poor fundamentals sell during the dark market. If investors firmly recognize the fundamentals of the company, investors can choose to hold firmly, choose to hold stocks for a long time after listing, be friends of time, and grow with the company.