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As mentioned in the last book, the Hong Kong stock market has many meetings you must listen to every day. You can only avoid missing out on the latest information, but in fact, the information in the investment calendar is far more than just about all kinds of meetings; there are also many important dates that may influence investment decisions.

And as a Hong Kong stock investor, of course I want to be able to know about market trends as soon as possible, but what are the details? Without further ado, let's talk about the time points in the Hong Kong stock market that must not be missed in this issue.

The four major dividend points

I heard that a certain stock was about to pay high dividends and wanted to grab it and scrape it off, but in the end they didn't get anything? The market conditions for the stocks I hold haven't changed much. I want to sell them after paying interest, but I haven't seen a shadow of dividends from left to right? It's very likely that you haven't figured out the four major dividend points in the Hong Kong stock market.

First, a Hong Kong-listed company must issue an announcement to notify shareholders before each dividend payment. This is the first point of a Hong Kong-listed company's dividend payout activity, and the content includes three other nodes:

The first is the net removal date. Investors must buy stocks before the net day to receive the announced dividends. The first example mentioned above — buying stocks to get dividends is likely to only buy on or after this date; naturally, you won't be able to get the dividends paid. Conversely, if investors hold shares until or after the net day they sell, they can still receive dividends.

It is important to note that on the day of net removal, the stock price of the stock usually falls to a large extent. This is also a reflection of the impact on the stock price after dividends are paid. Otherwise, the equity of investors who bought before and after net removal will be too different.

On February 10, Express Sales (06288.HK) announced that it intends to pay an interim dividend. The share registration date is February 26. The day after the general stock registration date is the interest-breaking day. Shareholders who bought the converted company's shares on this day will no longer enjoy the company's current dividend allotment of shares.

Another notable dividend point is the transfer deadline, which refers to the date that Hong Kong-listed companies suspend the update of the shareholder register. This is usually one to two trading days after the net date. This date is only for holdings held on hand.Physical stock certificateShareholders must complete the share transfer procedure and register the shares under their own name before the transfer deadline to receive the company's dividends.

Furthermore, if the shares are held by a brokerage firm, since the shares concerned will be registered in the name of the “Hong Kong Settlement Agent”, the Transfer Office will pay the relevant dividends to the company. Afterwards, the Hong Kong settlement agent will distribute dividends in proportion to the number of shares held by each central settlement system participant (such as brokerage banks, banks). The brokerage bank then deposits the relevant funds into the customer's stock account and charges the customer a handling fee for collecting dividends.

Finally, of course, is the day the money is taken — the dividend day. The day Hong Kong-listed companies pay dividends is usually between 1 week and 1 month after the net day. The second example mentioned at the beginning allows you to sell stocks with confidence; the dividends will arrive on time until the day the dividends are paid.

Also, unlike the A-share market, there is no such thing as a 20% dividend tax in Hong Kong, so all the dividends paid are real. Of course, this also depends on the type of stock. For example, HSBC Holdings is registered in both London and Hong Kong, and dividends are not withheld and paid tax according to Hong Kong corporate law. Companies registered in mainland China (i.e. H shares) must withhold 10% dividend tax at the time of dividend payment, while other foreign-registered companies listed in Hong Kong, such as Prada, must withhold 21% according to Italian tax laws.

Also, for cases where Hong Kong stocks are purchased through the Shanghai-Hong Kong Connect/Shenzhen-Hong Kong Stock Connect, regardless of where the listed company is registered, the dividend income collected must be directly withheld by 20% of the dividend tax. Of these, H shares are withheld by the company, and the others are withheld by Zhongdeng. Those that have already been withheld at the time of dividend payment, such as Prada, must personally provide a withholding certificate before returning them.

If investors need to know the status of each dividend point of a certain stock, they can enter the stock name or code in the search box on the Hong Kong Stock Exchange website to check the dividend information about listed companies:

Type a new hit on the idea

Compared to the A-share market, there is no such thing as “IPO must be earned” in the Hong Kong stock market. When subscribing for new shares, you usually have to pay at least 10% of a security deposit before placing an order, but the advantage is that the winning ratio is much higher than that of A-shares. Small capital retail investors also form a separate lottery to avoid the imbalance caused by the funding gap with institutional investors, and the first-hand winning rate of most IPOs has reached at least 20% or more.

On the other hand, the T+0 trading system for Hong Kong stocks allows investors to trade on the same day. Plus, there is no limit on the rise or fall rate, so even if you only look at short-term returns and choose popular stocks (such as overbuying 100 times or more) to break new, they will often get satisfactory returns under the impetus of market sentiment.

At this point, there are two other important date points relating to the IPO: the time of the IPO and the date of listing.

First, in the Hong Kong stock market, before an IPO is listed, there will be a four to six day prospecting period. Listed companies will determine a price range based on market conditions at the time of issuance, then invite investors to express their intention to subscribe in advance within the price range, and finally determine the final issue price based on the subscription results, and conduct a public offering during the prospecting period.

However, this time period is the observation of the overpurchase multiples mentioned above to select popular stocks to reach new important points, such as Kuaishou (01024), Novo Hui Health (06606), etc., which have recently been listed in Hong Kong

Of course, investors who didn't win the bid don't have to be discouraged. The Hong Kong stock market also has a relatively special mechanism — a secret IPO market, that isThe trading day before the IPO, an OTC market held after closing.

The OTC market, as the name suggests, is not a transaction that is coordinated through the Hong Kong Stock Exchange system during the trading period. Prices are usually matched through the internal systems of some large brokerage firms. The most famous in the Hong Kong stock market is the dark market of Philipp Securities and Yaocai Securities.

Finally, of course, is the IPO listing date. The IPO can be officially traded from this day on. You can find the recent IPO listing time in the calendar of the Hong Kong Stock Exchange's news section:

Additional share capital and spin-offs

Capital increases and spin-offs and mergers are two types of operations that often occur in Hong Kong listed companies. They also usually have a large impact on stock prices, so the time points in the process cannot be ignored. Compared to dividends, the timing of these two is relatively simple, that is, the date of publication and the date of entry into force.

Let's start with an increase in share capital. An increase in share capital is commonly referred to as a “stock supply,” meaningShares are distributed to all shareholders according to a fixed share supply ratio to raise capitalIt is more similar to the “allotment of shares” in the A-share market, but the shares offered in the Hong Kong stock market are transferable, so if shareholders decide not to accept the stock offering, they can choose to sell their shares during the trading period.

The price of a stock offering is generally based on the current price as a pricing reference. In order to attract shareholders to participate in the stock offering, most of the stock offering price will be discounted compared to the current market price before the stock offering is announced, because if the price offered is more expensive than the current price, the cost of buying the stock directly on the market is cheaper than the stock offering, so of course there will be no shareholders willing to pay.

Looking at the two time points, in order to attract more minority shareholders to participate, the stock price of a large share offering usually has a large discount compared to the current stock price, so inOn the day of publicationIncluding the next few days, stock prices will generally also experience a relatively large downward trend in volume expansion.

However, the effective date of the share capital increase is also called the delisting date, because in theory, the stock price for that day should be the weighted average price of the stock and the IPO before the stock increase is announced, but under normal circumstances, the stock price on that day is already relatively close to the weighted average price of the stock offering price, so there will be no significant fluctuations in the trend at this time.

For example, China Electric Power (02380) announced on the evening of October 9, 2017, that in order to disburse the acquisition of clean energy projects, the company plans to raise capital by allocating up to 1 share for every 3 existing shares held (that is, “three to one”). The amount raised is no less than HK$2 billion, and the next day's stock price fell more than 4%:

Afterwards, the company announced on November 9 that the stock offering price was HK$1.82 per share, discounted 27.5% from the closing price of HK$2.51 of the same day. At this point, there was no significant fluctuation in the stock price. Although the stock price also declined on the effective day, it was mainly due to its withdrawal from the MSCI China Index, which had little to do with the stock offering.

Like the issuance of additional share capital, spin-offs and mergers can cause changes in shareholders' shares, but the difference is that spin-offs and mergers will have an impact on the shares already held by shareholders, and in order to ensure that the value of shares held by each shareholder is consistent, spin-offs and mergers can also cause drastic changes in stock prices.

Due to this difference, the impact of the two time points of the spin-off and merger on stock prices is the exact opposite of the increase in share capital. Stock prices will not fluctuate much on the day of publication, but by the effective date, stock prices will change by several times (no return of power). Of course, this will not affect the market value of the stock itself.

However, when it comes to spin-offs and mergers, the stories behind these two are quite different. Stock splits are generally due to current stock prices being too high, which is an insurmountable threshold for ordinary investors. Therefore, when a listed company divides shares to lower stock prices and absorb more investors to increase liquidity, it usually also brings about another wave of upward trends.

For example, Tencent (00700) carried out a “one-five split” once in 2014 when its stock price exceeded HK$600. Otherwise, the current stock price would probably have exceeded HK$2,000. The picture below intuitively shows the impact of the stock split on the stock price in a way that has not been restored, but since then, Tencent's stock price has continued to soar:

On the other hand, joint stock partnerships are a common form of money fraud used by the “old thousand stocks” already notorious in the Hong Kong stock market. The minimum price of Hong Kong stocks can only drop to HK$0.01, but the majority shareholders raise stock prices through joint stock groups, then allocate shares at lower prices, and use shorting their own stocks to make a big profit. You can continue to play this game year after year.

For a long time in the past, “old thousand shares” have always been a stain on the Hong Kong stock market. However, under the heavy crackdown of the Hong Kong Stock Exchange and relevant regulators in recent years, this situation has been drastically reduced, so investors should not assert that a certain stock is an “old thousand shares” because it is a joint stock.

The story of the resumption of trading

If one day you find out that the listed company you have invested in is not trading, or has suddenly stopped trading, don't worry, because like other stock markets around the world, the Hong Kong stock market also has a suspension and resumption mechanism, and since there is no suspension system for the rise or fall of Hong Kong stocks, listed companies in Hong Kong may also suddenly suspend trading for a short time during the trading period due to stock price fluctuations.

In addition, possible reasons why Hong Kong-listed companies are suspended include situations where listed companies fail to comply with the provisions of the “Listing Rules”, insufficient public shareholding, insufficient assets to maintain the continued listing of their securities, and failure to publish regular financial information in accordance with regulations.

However, with regard to the time for the resumption of trading after the suspension of trading, the consistent policy of the Hong Kong Stock Exchange is that a short suspension or suspension of trading is only a means of dealing with potential and actual market chaos. Even if the suspension of trading is necessary, the short suspension or suspension period should be shortened as much as possible.

Furthermore, whether a listed company is voluntarily suspended or the company is suspended by the Stock Exchange, the listed company should issue a brief notice to the market explaining the reason for the suspension in order to increase market transparency and issue an announcement before stock trading resumes.

Therefore, what you need to do at this time is to find out the suspension announcement of this listed company as soon as possible, as well as when trading can resume trading, the time for the Hong Kong stock company to stop trading, the reasons and solutions, etc. are usually given in the announcement. Investors can inquire in the Hong Kong Stock Exchange's disclosure section.

An all-inclusive Hong Kong stock calendar

With so many important investment points in the Hong Kong stock market, it's probably not enough to just rely on the Hong Kong Stock Exchange to disclose the required data. What is needed at this time is a Hong Kong stock calendar that includes all of the above time points, and the Futu Niu Niu App also happens to have an all-inclusive Hong Kong stock calendar tailored for investors.

If you want to know more exciting things about investing in Hong Kong stocks, you can click on the poster to continue learning~