Article/Chen Jinxing, columnist of Sina Hong Kong (WeChat official account xlgg sina)
Hong Kong has a more mature system, free capital in and out, and a more international investment environment. I believe that enterprises will choose the listing location based on their own needs, or even choose to list in two places simultaneously. For Hong Kong Stock Exchange, the synergy effect is greater than the competitive effect.
Uncertainty in the future has declined, and the previous series of policies introduced by the mainland also reflect the government's determination to further open up. President Xi Jinping announced at the first China International Import Expo this Monday that a "science and technology innovation board" would be set up, which once worried shareholders that it would seize market liquidity. However, the information released by the current official, "science and technology innovation board" is different from the main board enterprises, and the main participants are also institutions, which will not conflict with the existing plates, and can improve market varieties in the long run, Support innovative enterprise financing.
According to the information disclosed by China Securities Regulatory Commission and Shanghai Stock Exchange at present, the "Science and Technology Innovation Board" has the following characteristics: First, the registration system, rather than the current approval system for one share, can make up for the slow IPO process under the current system, and the listing process will be more predictable. Second, we will make more appropriate differentiated arrangements in terms of profitability, equity structure and other aspects, which means that similar to Hong Kong stocks, "same share with different rights" and unprofitable enterprises may be allowed to go public, which is conducive to better financing of science and innovation enterprises; Third, there are requirements for investors to have asset scale, investment experience, risk tolerance, etc. Small and medium-sized investors are encouraged to participate in science and technology innovation board investment through public funds and other ways, which shows that this sector is not for ordinary investors and hopes to attract long-term institutional investors.
From the above perspective, the Science and Technology Innovation Board is a financing place for enterprises that cannot be covered by the main board for the time being, and not necessarily for ordinary investors. Listed enterprises are in line with national strategies, master core technologies, and have high market recognition. It belongs to the Internet, big data, cloud computing, human intelligence, software and integrated circuits, and high-end equipment manufacturing, It is believed that the number of pilot enterprises in high-tech industries such as biomedicine and strategic emerging industries is still very limited in the short term.
The Chinese government has always hoped to attract Unicorn and sci-tech innovation enterprises to return to A-share market through financial market reform, but this year, due to domestic and international situations, the progress has been delayed temporarily. The establishment of the "Science and Technology Innovation Board" is actually a continuation of the consistent policy, and the establishment of the Shanghai Stock Exchange also clarifies the role of the Shanghai Free Trade Zone in further opening up.
The Hong Kong Stock Exchange last year revised the listing rules for new economy enterprises. In the past six months, the number of new economy shares listed in Hong Kong has exceeded that in the United States, and the total amount of financing is more than double the number of similar shares that choose to list in the United States. Some investors believe that the establishment of the "Science and Technology Innovation Board" in Shanghai may lead to direct competition. Admittedly, new economy enterprises listed in the mainland are closer to their own users and have advantages. However, Hong Kong has a more mature system, free access to funds, and a more international investment environment. I believe that enterprises will choose the listing location based on their own needs, or even choose to list in two places at the same time. For the Hong Kong Stock Exchange, the synergy effect is greater than the competitive effect.
(The author of this article introduces that he graduated from the Department of Economics of the University of Hong Kong, and has 20 years of experience in stock market analysis. He has a deep understanding of the risks and opportunities in the stock market. In addition, he once served as the chief analyst of a local boutique investment bank, specializing in local small and medium-sized stocks. Now he is the research director of King Securities (Hong Kong) Co., Ltd., and comments on Hong Kong stocks on radio, television, newspapers and magazines in Hong Kong from time to time.)
