"I want to hear about you! What exactly does the north water and the south water mean? What do you mean by southward funds and northward funds? "

"is the Hong Kong Stock Connect adjustment and the Hang Seng Index adjustment on the same day? "

"are the targets in Hong Kong Stock Exchange all constituent stocks of the Hang Seng Index? "

……

Based on the above questions often appear in the brain of Niu you, so!

You will come to popularize the "Hong Kong Stock Connect" today.

Everyone can pick up the bench and read it.

What is the Hong Kong Stock Exchange?

First of all, we need to understand that the stock market interconnection mechanism between the mainland and Hong Kong includes four parts: Shanghai Stock Connect, Hong Kong Stock Connect under Shanghai-Hong Kong Stock Connect, Shenzhen Stock Connect and Hong Kong Stock Connect under Shenzhen-Hong Kong Stock Connect.

So what's the difference between them?

• The Shanghai-Hong Kong Stock Connect is the abbreviation of the Shanghai-Hong Kong stock market interconnection mechanism, which includes two parts: the Shanghai Stock Connect and the Hong Kong Stock Connect.

• The Shenzhen-Hong Kong Stock Connect is the abbreviation of the Shenzhen-Hong Kong stock market interconnection mechanism, which includes two parts: the Shenzhen Stock Connect and the Hong Kong Stock Connect.

The general rules of Shanghai Stock Connect and Shenzhen Stock Exchange are collectively known as Land Stock Link.

而The Hong Kong Stock General rules refer to mainland investors entrusting mainland securities companies to make a declaration to the Stock Exchange through the Securities Exchange Services Company (SPV) established by the Shenzhen / Shanghai Stock Exchange to buy and sell stocks listed on the Stock Exchange within the prescribed scope.

In short, Hong Kong investors can buy Shenzhen stocks or Shanghai stocks through mainland Stock Connect, while mainland investors can buy Hong Kong stocks through Hong Kong Stock Connect.

As for Nanshui, it refers to overseas funds, that is, northward funds, which can go northward to buy A shares such as Maotai; at the same time, the corresponding Beishui refers to domestic funds, that is, southward funds, which can go south to buy Hong Kong stocks such as Tencent. There is a little formula that you can remember skillfully:

Beishui = mainland funds = going south to buy Tencent

Nanshui = overseas funds = go north to buy Maotai

It is worth noting that although the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect complement each other, they adopt a dual-channel independent operation mechanism, corresponding to two different Hong Kong Stock Connect purview, so their Hong Kong Stock Connect shares cannot be sold across each other.

Why do we need to pay attention to the adjustment of the Hong Kong Stock Exchange?

According to the Societe Generale Securities Research report, the study found that after the effective date, the newly included Hong Kong stocks will have obvious excess returns.

Since there is excess income, of course we should observe it more carefully.

So next, let's take a look at what kind of target will be included in the Hong Kong Stock Connect.

Adjustment rules of Hong Kong Stock Exchange Standard

• Shanghai Stock Exchange with Hong Kong Stock Exchange
  

Hong Kong stocks listed on the Shanghai stock market include the following stocks:

1) constituent stocks of the Hang Seng Composite large stocks Index

2) constituent stocks of the Hang Seng Composite midcap Index

3) H shares of A + H shares listed companies.

Non-inclusion:

1. The corresponding A shares are H shares in which risk warnings are implemented.

2. Hong Kong stocks that are not traded in Hong Kong dollars

3. Secondary listed stocks

4. Stocks with other circumstances as determined by the Shanghai Stock Exchange.

• Shenzhen Stock Exchange

Hong Kong stocks in Shenzhen stock market include the following stocks:

1. Constituent stocks of the Hang Seng Composite large Index

2. Constituent stocks of the Hang Seng Composite medium Index

3. The constituent stocks of the Hang Seng Composite small share Index, and the constituent stocks regularly adjust the market capitalization of Hong Kong stocks at the end of the month in the 12 months before the deadline is not less than HK $5 billion. If the listing time is less than 12 months, the market capitalization is calculated according to the actual listing time.

4. H shares of A + H shares listed on the Stock Exchange.

The situation of non-inclusion is basically the same as that of Shanghai-Hong Kong Stock Connect.

1. The corresponding A shares are H shares in which risk warnings are implemented.

2. Hong Kong stocks that are not traded in Hong Kong dollars

3. Secondary listed stocks

4. Stocks with other circumstances as determined by the Shenzhen Stock Exchange.

• Scope and conditions of different rights of the same stock

Specific scope:It belongs to the target scope of Shanghai-Shenzhen-Hong Kong Stock Connect, but it does not include H shares of A + H shares listed companies.

The specific scope is selected in the following frame--

Inclusion conditions:

1. 6 months after Hong Kong Exchanges and Clearing's listing and 20 Hong Kong stock trading days thereafter

2. The average daily market value of Hong Kong stocks on the 183rd day before the inspection day (including the day of the study) is not less than HK $20 billion.

3. The total turnover of Hong Kong stocks on the 183rd day before the inspection day (including the day of the inspection) is not less than HK $6 billion.

4. Since listing, stock issuers and beneficiaries of different voting rights have not violated the provisions of the Stock Exchange on corporate governance, information disclosure and investor protection measures for companies with different voting structures, and are publicly criticized by the Stock Exchange, other public sanctions or trigger the termination of different voting rights.

5. Other circumstances determined by the Shanghai Stock Exchange or the Shenzhen Stock Exchange.

I've learned it.

It seems that we should pay more attention to similar stocks after that.

In the last chapter, Wen Jun will introduce the most important part--

The adjustment time of the Hong Kong Stock Connect.

Adjustment time of Hong Kong Stock Connect

Adjust periodically:

With the adjustment of the Hang Seng Composite Index, the adjustment will be carried out every six months, and the effective time will be annually.The first trading day after the close of the first Friday in September and March.

Temporary adjustment:

• Common new sharesListing: eligible new shares listed in the first and third quarters of each year will be listed in theJune or DecemberThe date of periodic index adjustment is included in the

  Specific conditions: meet the conditions for stock selection to join the large / medium stock index; must be on or before the review deadlineBe on the market for at least one monthThe months of all transactions must meet the requirement that the turnover rate is not less than 0.05%.
  

• Major new sharesListing: eligible major new shares will be added to the Hang Seng Composite Index after the close of the 10th trading day after the new listing, followed by the Hong Kong Stock Connect.adjustment

  Specific conditions: after the close of the first trading dayThe market capitalization ranks in the top 10% of the existing constituent stocks of the Hang Seng Composite Index.(based on the number of constituent shares)

  (companies with different rights of the same shares are still required to be listed on the Stock Exchange for six months and 20 Hong Kong stock trading days thereafter. Companies with secondary listings cannot be included in the Hong Kong Stock Connect for the time being.)

• AHListing: existing A shares newly issued H shares, or existing H shares newly issued A shares, or H shares issued at the same time, the H shares end at the end of the price stability period andAfter 10 trading days after the listing of the corresponding A-sharesTransfer to Hong Kong Stock Exchange.

In addition, investors can also pay attention to the corresponding notices of Shenzhen Stock Exchange and Shanghai Stock Exchange, and Futu Information will also convey relevant information to you in a timely manner.

At present, the latest stock list of Shanghai-Hong Kong Stock Connect is adjusted regularly on March 15, 2021.