As one of the international financial markets that started earlier, after several rounds of global financial turmoil, Hong Kong’s market supervision has gradually improved and its mechanism has become more mature. It has gradually grown into a standardized, open and mature financial market. In recent years, with the rapid rise of China’s economy and the gradual deepening of the reform and opening up of the mainland capital market, Hong Kong’s financial market has become an important bridge and hub connecting domestic and foreign capital, as well as an important breakthrough for Chinese securities companies to layout overseas business. With its close connection with the global capital market, favorable business environment (sound legal and regulatory framework, convenient business operation), efficient financial infrastructure and other advantages, Hong Kong has long ranked among the top in the world in terms of comprehensive strength, and its position as an Asian financial center is stable. At the same time, due to the high openness and stability of Hong Kong’s foreign exchange market, it has attracted worldwide attention
Investors to tap market opportunities, but also bring many business opportunities for intermediaries.
The Hong Kong market integrates multiple products and currencies, providing rich investment options, and the development opportunities of Chinese securities companies outweigh the challenges. Compared with the mainland, the Hong Kong market is richer in financial products, especially the variety of derivatives market, which requires intermediaries to have a solid customer base and strong risk pricing and transaction hedging capabilities. Based on the diversified products and relatively loose regulatory environment, securities companies are expected to obtain more opportunities for financial innovation. They can also introduce business concepts and management mechanisms with a more international perspective to the headquarters level, improve the company’s comprehensive strength and global competitiveness, and help Chinese securities companies move towards a broader international market. The Hong Kong market adopts the mixed operation and separate supervision system under the restriction of license to restrict the financial business behavior of intermediaries or individuals with “licensed operation”. But in addition to capital
In addition to the entry threshold set in this, the Hong Kong financial license application conditions are transparent and flexible, and pay more attention to the continuous supervision after the exhibition.
We believe that the connectivity of the Hong Kong and mainland markets is increasing, and Chinese securities companies may be more favored by investors in the future. In the next step, the construction of Guangdong Hong Kong Macao Dawan district will continue to be further promoted. The Chinese government continues to give various preferential policies to Dawan district to help its development. Hong Kong may benefit for a long time, assume more responsibilities to connect domestic and foreign financial markets, and become an important bridge between domestic capital going out and foreign capital coming in. At the same time, due to the lower listing threshold and more flexible mechanism, the Hong Kong stock exchange is still the best choice for many innovative growth enterprises in China to list, and the change of geographical environment has also accelerated the return of China concept shares to Hong Kong. Interconnection and the return of China concept shares promote each other and further enhance the activity of the Hong Kong market. Various derivative businesses subsequent to IPO and IPO will become the core breakthrough for Chinese securities companies to expand their business in Hong Kong and even around the world.
Investment strategy: focus on head platforms with strong comprehensive strength, such as Citic Securities Company Limited(600030) , Guotai Junan Securities Co.Ltd(601211) , Huatai Securities Co.Ltd(601688) .
Risk tips: global economic downside risk, geopolitical risk, policy risk, market risk and liquidity risk
