Which of the 28 companies that meet the market cap threshold for inclusion in the Hong Kong stock connect are worth watching? What impact will Alibaba have on the newly listed Hong Kong stocks in August as previously expected?
According to data as of June 30, 2024, it is expected that there will be around 28 Hong Kong stocks companies that meet the market cap threshold for inclusion in the Hong Kong Stock Connect in September.
Companies expected to be included in the Hong Kong Stock Connect in September include:$LAOPU GOLD (06181.HK)$, $EASOU TECH (02550.HK)$, $AUTOSTREETS (02443.HK)$, $QUNABOX GROUP (00917.HK)$, $MARKETINGFORCE (02556.HK)$, $CHABAIDAO (02555.HK)$, $CONCORD HC GP (02453.HK)$, $IMOTIONAUTOTECH (01274.HK)$, $DEKON AGR (02419.HK)$, $DPC DASH (01405.HK)$, $SANERGY GROUP (02459.HK)$, $SUNSHINE INS (06963.HK)$, $CALB (03931.HK)$, $ONEWO (02602.HK)$, $MORIMATSU INTL (02155.HK)$, $ZONQING LTD (01855.HK)$, $DALIPAL HLDG (01921.HK)$, $TIANLI INT HLDG (01773.HK)$, $DL HOLDINGS GP (01709.HK)$, $JNBY (03306.HK)$, $HEC CJ PHARM (01558.HK)$, $HAO TIAN INTL (01341.HK)$, $SINOPEC SEG (02386.HK)$, $MONGOL MINING (00975.HK)$, $EVERG VEHICLE (00708.HK)$, $K. WAH INT'L (00173.HK)$, $HANG LUNG GROUP (00010.HK)$, $BABA-SW (09988.HK)$.
Whether Alibaba can be included in the Hong Kong stock connect during the September list adjustment is a market focus.
According to Alibaba's annual report released in May this year, the company is expected to complete the conversion of its main listing in Hong Kong by the end of August 2024. After the conversion, Alibaba will have dual primary listings on the Hong Kong Stock Exchange and the New York Stock Exchange.
Morgan Stanley recently released a research report stating that after Alibaba completes its first listing in Hong Kong and the US, it is expected to be included in the Hong Kong stock connect as early as September 6 and will welcome southbound capital trading on September 9 for the first time, which is expected to drive some inflow of capital.
Data shows that Alibaba had previously announced on July 26, 2022, that it had submitted an application to the Hong Kong Stock Exchange to add Hong Kong as its main listing venue. At that time, Alibaba expected that its dual primary listing status would help expand its investor base and bring the company new liquidity.
If Tencent, which is also a core technology stock, is used as a reference, market data shows that southbound capital has flowed into Tencent from the Hong Kong stock connect for a total of approximately HKD 242.1 billion in the past three months, with a net inflow of approximately HKD 10 billion. Tencent's stock price has risen by more than 20% in the second quarter.
On the other hand, as of June 28th, within the year$Hang Seng Stock Connect Hong Kong Index (800729.HK)$has risen 4.63% as of June 28, outperforming a 3.94% increase.$Hang Seng Index (800000.HK)$After being selected for the Hong Kong stock connect, it may also bring more passive allocation funds to Alibaba.
Editor / jayden