Because it can directly enjoy the "baptism" of southward funds, it can be selected as the target of the Hong Kong Stock Connect, and has been crazily sought after by the market. The evaluation period for this non-half-yearly Hong Kong Stock Connect exchange ends on June 30, and the subsequent list will be announced around mid-August, and it will be officially traded under the Hong Kong Stock Connect system on September 9. Let's take a look at what targets of this Hong Kong Stock Connect can be selected.
There have been some changes in the conditions of stock selection this time.
If you want to know which companies have the potential to enter Hong Kong Stock Connect, you must first understand the inclusion criteria of Hong Kong Stock Connect.Zhitong Financial APP has learned that the scope of inclusion of Hong Kong shares includes: (1) non-St shares in AqiH shares; (2) Hang Seng Composite large-and medium-sized Index stocks other than AqiH; and (3) Hang Seng Composite Mini Index stocks other than Abach, with an average market capitalization of more than 5 billion (reviewed semi-annually based on the average market capitalization at the end of the past 12 months) 4. Excluding non-stock items such as REIT (real estate fund). For example, the Link REIT 823 is a component of the Hang Seng Composite Index, but it is not standard for Hong Kong stocks.
Therefore, for non-A + H shares, access to the Hang Seng Composite Index is the key to Hong Kong stocks.Zhitong Financial APP learned that the scope of stock selection of the Hang Seng Index had been adjusted before, in addition to the previous Hong Kong main board listed shares and real estate trusts (REITs), but excluding companies and foreign companies with Hong Kong as the secondary market, new foreign companies with primary listings, bound securities and Greater China companies with different voting rights structures. In addition, the non-profit pharmaceutical companies listed on the main board, such as Golly Pharmaceutical-B (01672), have low liquidity and high equity concentration, suspension of trading within the audit date and other companies that do not meet the requirements of stock selection.
In addition, the mainland's Shanghai and Shenzhen exchanges have previously added a threshold to the entry of Hong Kong stocks.In July 2018, mainland investors were familiar with mainland transactions on the grounds that they would not include the three categories of securities recently added to the Hang Seng Index, namely, foreign companies listed in Hong Kong No. 1 in Hong Kong, bound securities and companies with different voting rights structures, into the scope of Hong Kong Stock Connect stocks, so at present, only ordinary stocks listed on the main board are selected in the Hang Seng Composite Index. Companies such as United, PRADA S.p.A., XIAOMI and Meituan, which were included in the Hang Seng Composite Index in the third quarter of 2018, have temporarily missed the Hong Kong Stock Connect.
The subject matter that enters the scope of choice also has to meet two major criteria, the first is the market capitalization criterion.Zhitong Financial APP learned that in the average month-end market value of the past 12 months, all securities are ranked according to their total market value. If the securities are listed for less than 12 months, the average month-end market value after listing will be used for ranking. In terms of the average market value at the end of the month in the past 12 months, the Hang Seng Composite Index has been included in the Hang Seng Composite Index if the 12-month average tradable market value is less than the top 96% of the sum of the 12-month average tradable market value of a specific range of stocks. If it is not the target of the Hang Seng Composite Index, if the 12-month average tradable market value is higher than the top 94% of the 12-month average tradable market value of a specific range of stocks. The 12-month average tradable market value threshold for the last transfer to the Hang Seng Composite Index was about HK $6.2 billion, while the 12-month average tradable market value threshold for excluding the Hang Seng Composite Index last time was about HK $3.8 billion.
Then there is the trading volume criterion: the monthly volume circulation ratio of each eligible security in the past 12 months is calculated according to the following formula, the minimum volume circulation ratio is 0.05%.
The turnover ratio of eligible securities must meet the minimum requirement in at least 10 of the past 12 months and at least 5 of the last 6 months; however, this rule does not apply to the subject matter entered by the rapid inclusion of the index rule.
Quick inclusion of index rules includes both quarterly and ad hoc.The quarter refers to the listing of securities in the first or third quarter of each year and meets the criteria for joining the large / medium share index, the securities will be included in the Hang Seng Composite Index and equivalent Index on the regular index adjustment date in June or December respectively.
Ad hoc refers to the total market value of newly listed securities after the close of trading on the first trading day, ranking in the top 10% of the existing constituent stocks of the Hang Seng Composite Index, and the securities will be included in the Hang Seng Composite Index and its sub-index during regular reviews. The inclusion of this non-periodic constituent stock is usually performed after the closing of the 10th trading day after the listing of newly listed securities.
The above are the criteria for considering the entry of non-A + H shares into the Hong Kong Stock Exchange. Generally speaking, the major adjustments of the constituent stocks of Hong Kong stocks are in March and September, while the latest centralized adjustment in September is the 12-month trading data up to June 30, 2019. Therefore, there is already a list of potential Hong Kong stocks.
The list has been released, so we still need to be careful in operation.
The list of Hong Kong stocks has been released, most of which are listed in 2019.Zhitong Financial APP learned that Cofco Meat (03990), Jiuxing Holdings (01836), Carson International (00496), COFCO Meat (01610) and Sihai International (00120) were only listed before 2019, among which Cofco Meat can be regarded as a return. The remaining 13 are China Oriental Education (00667), Jinxin Reproduction (01951), Haitong Hengxin (01905), Xinyi Energy (03868), China Xuyang Group (01907), New Oriental Education & Technology Group online (01797), China Tobacco Hong Kong (06055), Weimeng Group (01907), Dexin China (02019), China Kepei (01890), China Shipping Leasing (03877) and Fangda Holdings (01521), all of which meet the market capitalization and liquidity standards of circulation in 2019.
In addition, Greater China companies with different rights of the same shares still have the potential to enter Hong Kong shares.Zhitong Financial APP learned that Li Xiaojia, president of the Hong Kong Stock Exchange, said at a press conference on February 28, 2019 that companies with different rights such as XIAOMI and Meituan are still expected to be included in the Hong Kong Stock Connect. After that, it was reported in the market on May 28 that BABA was also considering a secondary listing in Hong Kong, and as the lineup of such stocks became stronger, the process of inclusion in the Hong Kong Stock Connect was expected to accelerate.
In fact, since appreciating the power of southward funds to greatly promote the strength of the Hong Kong stock market, the Hong Kong stock market has been highly concerned by the market, but from the overall data, it is still better to choose carefully.Zhitong Financial APP learned that after investors were familiar with the adjustment rules of the Hong Kong Stock Connect, the potential transfer targets were generally paid attention to and laid out in advance, resulting in a large increase in the company's valuation and stock price before the transfer, and the expected early realization led to the fact that the data did not look good after entering the Hong Kong Stock Connect list. Since the opening of the Shenzhen-Hong Kong Stock Connect at the end of 2016, the total number of stocks transferred to Hong Kong Stock Connect has fallen.
And judging from the gains of the 18 potential transfer companies this year, most of the stocks have experienced large gains, of which China Tobacco Hong Kong, which has the first concept stock of tobacco, has risen as high as 214.39%. With the take-off of the pork concept, Cofco meat has also risen by 77.93%. The strong increases in the stocks transferred to the list are all hot companies with performance support, and these stocks have been settled by various funds. At the same time, the trend of the Hong Kong Stock Exchange Index basically coincides with that of the Hang Seng Index, which means that even if it is transferred to the Hong Kong Stock Exchange, it still has to return to the general environment of Hong Kong stocks, so in the face of the transfer of the Hong Kong Stock Exchange to the potential list, do not follow it blindly.