Recently, the Hong Kong stock market has been launched in several new energy companies. One is the leader of the new second-tier car manufacturing forces, and the other is the second-tier lithium battery innovation aviation. When paying attention to these two companies, Leo was deeply shocked by the liquidity of the Hong Kong stock market.
trading volume is outrageously low
. Although these two companies are not very famous and successful in their respective industries, they are at least the leaders in the second-tier camps. However, in the Hong Kong stock market, their trading volume can only be described as terrible!
China Innovation Airlines traded nearly 1.8 billion Hong Kong dollars on the first day of its listing. This trading volume is pretty good, but the trading volume on the second day fell directly to less than 40 million Hong Kong dollars. It will be difficult for the trading volume in the next few days to exceed 100 million.
Look at LePan Automobile again, it is even more terrible: the transaction volume of HK$780 million was sold on the first day of listing, the transaction volume of HK$110 million was dropped on the second day, and the transaction volume of RMB40 million on the third day. From the fourth day, it is difficult to exceed 10 million.
You should know that although LePan Automobile is average in popularity, it is also a company worth nearly 30 billion Hong Kong dollars.
To be honest, although I knew that Hong Kong stocks were not liquid, I was still deeply shocked when I really looked at the trading volume of the companies I was concerned about. This track, this size company, such a low trading volume is not an exaggeration.
Compare A shares similar companies to know. The company close to
is Guoxuan Hi-Tech . The industry status and market value of the two companies are similar. Guoxuan Hi-Tech's daily transaction volume is 600 million to 700 million, and one month ago, even an average of more than one billion, which means that Guoxuan Hi-Tech's transaction volume is several times that of AVIC , or even more than ten times.
Look at Leapmotor again. There is no direct benchmark company in A-shares. JAC Motors is slightly closer. JAC Motors itself does not have a decent new energy vehicle. It mainly produces NIO , but the market value of the two companies is similar, less than 30 billion.
JAC Auto’s daily transaction volume is about 1 billion. Half a month ago, it was about 2 billion, almost dozens of times or even hundreds of times the transaction volume of LePhan Auto! The liquidity gap between
is so big that it is impossible to complain too much. It is precisely because of this liquidity gap that creates a huge difference in investment strategies between A-shares and Hong Kong stocks.
liquidity is too poor, resulting in too little capital for buying at the bottom of and chasing the rise. Therefore, the decline of Hong Kong stocks can be without a bottom. Once the downward trend is formed, it is very terrifying.
In the past wave of Hong Kong stock market, many Hong Kong stock investors have deeply realized the cruelty of the Hong Kong stock market, and many fund managers have stepped down from the altar.
Similarly, the liquidity is too poor, coupled with the relatively mature short selling mechanism of Hong Kong stocks, when Hong Kong stocks rise, they are not as crazy as A-shares.
The result is that Hong Kong stocks can fall a lot, and there is no compensation for the crazy bull market like A-shares. To put it bluntly, there is no liquidity premium.
is the huge gap between liquidity, which has led to the differences in investment in the two places, which everyone who is interested in investing in Hong Kong stocks should understand.
Things to note for investment in Hong Kong stocks
First, the liquidity of A shares is very sufficient, resulting in a significant market value gap between listed companies in AH. The extra market value of A shares is a liquidity premium, which is normal.
Don’t see the same company. If Hong Kong stocks are cheaper, they think they have advantages to take. Basically, there is no disadvantage to take advantage. It is worth the money in the Hong Kong stock market.
liquidity is extremely important. Many people do not feel that investing in A-shares, but once the amount of funds is large enough or in real estate, you will know that assets without liquidity will be greatly discounted, and may not even be considered assets, and may become liabilities.
In the past 10 years, the average premium rate of AH and AH has been around 30%, and everyone should be clear that the premium rate of AH and AH will change due to the different market conditions in the two places.
Anyway, remember one thing: the better and more famous a large company, the lower the liquidity premium will be, and vice versa; generally speaking, there is no cheaper to take advantage of the price difference in Hong Kong stocks!
Second, when investing, try to choose well-known large companies, at least not overly affected by liquidity factors selling down . Basically, companies that are not in , Hong Kong Stock Connect, don’t need to consider it (except for new stocks).
3. Don’t have the idea of being greedy for cheap stocks or greedy for low-priced stocks. This is a very traditional A-share thinking. Using this thinking to invest in the Hong Kong stock market may lead to a miserable death.
The liquidity of Hong Kong stocks determines that the smaller the company, the worse the liquidity. You think the stock price is very low and the valuation is very low, but it can be lower, there is no lowest, only lower!
Moreover, there is a system of combined stocks and splitting stocks in the Hong Kong stock market. When the stock price is low to a certain level, listed companies will combine stocks, such as 10 shares combined into 1 share to support the stock price, but what should go down later will still go down. As a result, while the stock price continues to fall, there are no shares in your hands.
means that even if the company encounters a super big theme later, or the company's fundamentals have changed and the stock price has risen again, your wealth will never come back, and it will be destructive of value.
Fourth, Hong Kong is an international financial center . The Hong Kong stock market is also very international, which leads to it being more and more timely affected by international factors. Especially Federal Reserve and US stock will have a direct and huge impact on it. When investing in the Hong Kong stock market, you must have a certain prediction of the international situation.
Fifth, it is precisely because of the above factors that if you invest in Hong Kong stocks, it is best to add the trend framework to avoid causing devastating blows. If you are doing regular investment, it is best to use the market index as the target, and the fixed investment range will be wider, especially during the downward trend.
No. 6. Although many people are almost desperate about the Hong Kong stock market and think that it is a hopeless garbage market, everything has a cycle. It’s just that the Hong Kong stock market is in a relatively weak cycle now, and there are still many excellent companies on it.
As a very special existence in the Chinese capital market, the Hong Kong market still has its unique value for at least 5 to 10 years, which means that now, people are becoming more and more pessimistic, the investment value of the Hong Kong stock market is actually gradually increasing.
As the Hang Seng Index continues to decline, Hong Kong stocks are becoming more and more worthy of attention, especially leading companies in industries such as innovative drugs, Internet, new energy, real estate, and property.
Finally, A-shares are actually a bit of a trend of slowly becoming Hong Kong stocks. With the substantial implementation of the full registration system, new stocks are constantly put into pots like dumplings, and delisting is like constipation. Many small companies or junk stocks have gradually become less liquid.
The most typical example is that the ST sector, which has been an excellent investment direction in the past decade, has gradually become unsatisfied. The further you go, the more you need to consider the company's fundamentals and liquidity in your investment. In addition, you will also add trend-related technical factors to avoid a devastating blow to one-time investment. The maturity process of
will inevitably come at a cost. This is true for Hong Kong stocks and A-shares.
