Hong Kong stocks are only undervalued relative to A-shares. The low valuation of Hong Kong stocks is structural, and not all stocks are low. Moreover, the low P/E ratio of Hong Kong stocks does not mean that the valuation must be low. The following are the reasons for the low valuation of Hong Kong stocks compiled by Bian Xiao, hoping to help everyone.
What are the reasons for the low valuation of Hong Kong stocks?
1. is related to the constituent stocks of the index. In the Hong Kong stock market, the financial and real estate industries account for half of the country, such as HSBC, AIA, CCB and other stocks. The growth of such traditional industries is limited, and their own valuations are not high, which leads to the overall valuation of Hong Kong stocks being lowered. Brokerage, Agude Bank, insurance, real estate and other industries have low P/E ratios.
2. It is related to the investor structure. Although Hong Kong stocks are a global market, more than 60% of listed companies come from the mainland, but the proportion of mainland investors is less than 10%. There is a simple reason. It is more troublesome for mainland investors to enter the Hong Kong stock market to buy and sell stock funds, and the threshold for opening an account and the handling fee are higher. It is difficult for most retail investors in the A-share market to enter the Hong Kong stock market.
3. It is related to the liquidity of the stock market. Hong Kong stock registration has a low threshold for listing. The regulatory authorities only check the qualifications and do not judge the value of the stock itself.
4. Related to market positioning. Although Hong Kong stocks are also international markets, major capital countries have their own exchanges, and they definitely prefer the markets they are familiar with. HKEx is often used as a spare tire for value investment or cross-market arbitrage.
What are the benefits of the new Hong Kong stock market?
It is more friendly for novices to make new investments in Hong Kong stocks. First, the threshold is relatively low, and it doesn't need too much money to prepare. Second, investors don't need to spend a lot of time and energy on research. Third, the winning rate is much higher than that of A shares, and retail investors are preferred. Fourth, the income from catching 3-5 big meat labels a year is still considerable.
It is obvious to all that Hong Kong stocks have won the new lottery and the yield is high. Statistics of IPO of Hong Kong stocks in recent three years show that the annualized rate of return can reach about 50% for small investors below 654.38+10,000, if they insist on selling in secret or on the day of listing. If you can choose high-quality leading subscription, it is normal for the yield to further increase.
It should be noted that only by opening a Hong Kong brokerage account can we participate in the innovation of Hong Kong stocks. About 200 new shares of Hong Kong stocks are listed every year, with a breaking rate of 70%. If screened, this probability can be increased to 80%-90%, and the winning rate is higher than that of A shares, and the income is quite good.
Although Hong Kong stocks have a high new income and a high winning rate, it does not mean that every newcomer can win the lottery. After all, this is a probabilistic event.
What kinds of Hong Kong stocks are there?
Blue chip: generally speaking, it refers to the stocks with a long history, stable performance and large market value in the Hong Kong stock market. Hong Kong stocks and blue chips are actually representatives of British-Chinese capital. Such as British-funded HSBC and Swire Group. Chinese-funded CITIC Pacific and Cheung Kong Industries are also the drivers of the prosperity of Hong Kong stocks for more than a decade.
The market value of these enterprises is tens or hundreds of billions of Hong Kong dollars, and an increase of 1%-2% can influence the market situation. In the past, blue chips accounted for 80% of market transactions. With the acceleration of China listed companies entering Hong Kong, red chips and H shares have rapidly increased to about 60% of market transactions.
Red chips: refers to the direct listing of companies whose major shareholders are from China Capital and the shell listing of China investors. Its business may be located in China, Hongkong or overseas. The largest controlling interest directly or indirectly belongs to relevant domestic departments or enterprises. Red chips in the second half of the year 1996 to 1997, Hong Kong stocks returned to China, and red chips rose by almost 200%, greatly exceeding the 40% increase of Hang Seng Index in the same period.
Because red-chip companies operate in China and China, they can combine the scale of the market with the advanced corporate management of Hong Kong stocks to create unlimited development space. Especially after the return of Hong Kong stocks to China, the status of red chips will be a guide for China to master the finance of Hong Kong stocks, and enterprises with red chips will have high transparency in corporate finance.
State-owned shares: also known as H shares, are shares of companies in China listed in Hongkong. . Generally speaking, H-share listed companies are relatively large. Most of them belong to basic industries and are the leading positions in this industry. The average assets of H shares are about 6.5 billion RMB, which is also the reason for the low share price of H shares in the past.