Hong Kong exchanges and Clearing (HKEx) has hit a new high with 10 of China's biggest industries gathering in the city

2020-06-04

　　China's Internet giants will gather in Hong Kong as the country's biggest companies unveil plans to return to the mainland.


　　Hong Kong exchanges and Clearing(HKEX)has become the"most beautiful Hong Kong"in the Hong Kong stock market.After four days of gains,the Hang Seng Index rebounded to 24,000 points.

　　On the other hand,the share price of Meituan,the"king of food delivery",rose rapidly and its market value exceeded 930 billion yuan.The enterprise giant of new economy has become the new name card of Hong Kong stock after the development of Tencent and alibaba.

　　In the last years,Mr Li ren,chief executive of the Hong Kong stock exchange or usher in a new round of reform of the fruit,after almost shares in rui xing counterfeiting probably just a fuse,the 14 trillion market value of any shares owned by Hong Kong tidal surges,netease,jingdong and earlier return to alibaba has only accounts for the 4,hkex obviously of chance in the future.

　　Ten industry giants may gather in Hong Kong stocks

　　At present,after the examination of alibaba,Tencent and Meituan,the Hong Kong stock exchange has logged in xiaomi,jingdong,pinduoduo,netease and baidu,and has sent the news of the second Hong Kong listing.While Pinduoduo later said it was flush with cash and had no plans,this trend makes Hong Kong a smart place to start raising money in the future.

　　In addition,giant companies such as Bytedance,Ant Financial and Didi have yet to go public,but have repeatedly been rumored to have"affairs"with the Hong Kong Stock Exchange.

　　It is foreseeable that in the near future,China's top ten Internet giants are expected to get together in Hong Kong.

　　By the afternoon of June 3,hKEx was up more than 2%.Its shares were trading near HK$300,a record high and up more than 40%from their March lows.

　　hkex

　　A day earlier,the hkex disclosed that it had passed the hearing of the netease(nasdaq:NTES)listing and published the prospectus for the latter.Netease will issue 171 million new common shares,code-named"9999.hk",at a price ceiling of HK$126 per share of the enterprise,and will start trading on the hkex at 9am on June 11.

　　The netease youdao subsidiary went public on the New York stock exchange last year.Netease will become an Internet company listed on nyse,nasdaq and Hong Kong.

　　In addition to jd news,the company will take over netease,becoming the third Chinese Internet company after netease to be listed on the U.S.stock market in Hong Kong.

　　This year in late may,after the rui xing xing is critical financial and accounting fraud,the United States senate on these foreign companies through a accountability act,requiring foreign issuers three consecutive years cannot obtain satisfies the requirement of the PCAOB to the certified public accountants examination work,banned its securities traded in the U.S.economy,stirred for any shares in the social market in the United States are concerned,to return to Hong Kong is also thought to be China's future development trend.

　　Why HKEx

　　Last generalized regression tide in 2015,the qing dynasty most small and medium-sized companies chose to return to the high valuation of A shares,including 360,perfect world(44.83-0.60%,diagnosis),and the giant network(16.57+0.12%,the diagnostic shares),focus media(5.30+2.32%,the diagnostic shares),etc.,are less than less than$billions billions of dollars in the market,return to A shares an instant response.

　　Except for the special point of time,they choose to return to netease and jingdong's profile picture,etc.,which are all domestic Internet companies.Their market value belongs to the first echelon of take-out stocks,and most of them are giants in the new economy field.They are listed in Hong Kong for the second time,not privately-owned.

　　For the reasons for our return to the first choice of Hong Kong stocks,Pan Xiangdong,chief technical and economic sociologist of The New Era Securities Company,believes that compared with the A-share enterprise market,listing in Hong Kong does not need to dismantle the VIE structure,saving A lot of time and cost,and improving efficiency.And with the advance of the A-share market registration reform,it will also clear the institutional obstacles for the return of Chinese concept shares.

　　Hkex missed Out on Alibaba,which was allowed to return last year,because we could not be restricted by the"same share,different rights"rule.During his more than 10 years in office,HKEx has made a series of related educational reforms,including the Shanghai-Hong Kong Stock Connect,the Shanghai-Hong Kong Stock Connect and the new rules for listed companies.In 2018,hKEX passed the threshold for listed companies with the same share and different rights.

　　Between the time the Hong Kong stock exchange"missed"Alibaba and the announcement that it would eventually allow different rights to its shares,Alibaba's US share price nearly doubled,putting it on par with Hong Kong's"king of shares",Tencent Holdings.

　　Some brokerages also pointed out that in recent years,Chinese concept stocks were not popular in the development of the Social capitalist market in the United States,and the phenomenon of undervalued value was quite obvious.Returning to China was conducive to better pricing,and with the development of China's A-shares and Hong Kong stocks,they also opened their arms to this.In this case,luckin's fraud may have existed only as a trigger in the context of the return of most Chinese stocks.

　　Behind hKEx's record high

　　In addition to bringing back popular stocks,Hong Kong's IPO market has been hot this year.In terms of the number of listed companies listed in Hong Kong has decreased,but capital has become more concentrated.Deloitte's statistics show that 95 per cent of ipos in Hong Kong in the first quarter were oversubscribed and 49 per cent were more than 20 times oversubscribed.

　　In recent days,hKEx's partnership with MSCI to promote futures companies has also been widely viewed as a promising market.Jpmorgan expects the partnership to diversify hKEx's revenue data sources and increase operating earnings per share by 5-15 per cent over the next two to three years.

　　Song Yang,managing director of China Renaissance capital,predicts that as many as 50 to 60 Chinese stocks will come to Hong Kong in the next three to five years.

　　As of June 3,nearly 300 Chinese stocks on the U.S.stock market had a combined market value of$1.97 trillion(about RMB 14.04 trillion).Alibaba,which has returned,and netease jingdong,which will soon launch,had a total market value of 722.895 billion(about RMB 5.150 billion),accounting for only 36.68%.

　　It is worth noting that new economy development companies listed in Hong Kong for secondary use cannot be included in the Stock Connect,although Mr Li said it was just a matter of time management.The hang seng index analysis company also published a statement recently,saying that it will be able to include companies with different rights of the same share and companies with second listing in the hsi stock selection category starting from the quarterly review in August.Market economy expectations alibaba,Meituan review and xiaomi technology group have the opportunity to be listed.

　　Alibaba,which went public in Hong Kong in November last year,closed up 11.6%on the day of its listing.Up to now,its shares have risen more than 12%in China,with a market value of about HK$4.5 trillion,which is higher than Tencent Financial Holdings,making it the no.1 Internet company.

　　Compared with Alibaba's performance,the performance of Tencent and JD after their Hong Kong listings is naturally high expectations,and hKEx will be the biggest beneficiary,regardless of the amount of capital raised or the amount of liquidity.

　　Last year,HKEx was again the world's largest ipo issuer by revenue,raising HK$314.2 billion,with Alibaba alone accounting for about 28 percent of the total.On the first day of the IPO of alibaba,the company was publicly sold 41.44 times in Hong Kong,and the number of investors could reach 195,700.After that,it further improved the economic market activity through the management of related financial derivative development tools.

　　The latest news shows that on June 2,the total securities of zhinfu Hong Kong shares netease for 6.402 billion Hong Kong dollars,integrated 8 brokers to subscribe for new shares,netease has been the subscription volume raised about 29.304 billion Hong Kong dollars,45.16 times the oversubscription multiple.

　　This year,hKEx accounted for nearly 45 percent of its revenue from trading and fee systems,settlement and payment fees and listing fees of 26.2 percent and 12.3 percent,according to first-quarter data.

　　Hkex 2

　　This means that the number of ipos has a big impact on hKEx's revenue levels,and that rising activity in the market after the return of large Chinese and Chinese stocks will also bring a valuable benefit to hKEx.

　　That"li"the reform and development of direct can attract the millet,Meituan,haidilao,peace Chinese good doctor,wuxi(81.99+2.17%,clinical shares)company in Hong Kong,the incumbent finally through more than a year we time or will to witness history again round the hkex listing,the latter will also therefore enterprises usher in a new peak.

　　It has to be mentioned that,through positive influences,the company's performance is lower than expected,and the development of the company.Meituan's rapid growth recently reached hk$930 billion,breaking through the total market capitalization and surpassing oil,and hkex is the third market capitalization of hk$trillion that may give birth to a Chinese giant.