text | Zhou Quanhao
Hong Kong stocks have become political markets in recent years. They are tragically ravaged by the dispute between China and the West.
This is related to the uniqueness of Hong Kong. As an international financial center in China, Hong Kong implements one country, two systems , and has a special status and no mainland city can replace it.
First of all, Hong Kong is a special contact between China and other countries. Many things such as technological exchanges, trade, finance and some sensitive topics can be exchanged and interacted in Hong Kong in a private manner. Hong Kong is its "its own place" and takes into account China's interests; but if Hong Kong does not implement China's common system, foreign countries will be more at ease, and it is an important bridge to connect China and the world.
Secondly, the central government wants to use Hong Kong to help the RMB go global, so that other countries can generally accept the RMB as a medium for foreign exchange reserves , trade and investment. Mainland China is a semi-closed economy . The capital account is not open and the RMB is not free to circulate. How to make the RMB truly go global is an important issue that China needs to face today. Currently, Hong Kong is the world's largest offshore RMB business center, and nearly 70% of the world's payment amount is processed by Hong Kong. It is expected that the importance of this role will increase.
For the second time, the central government wants to use Hong Kong to help mainland companies go public and raise funds, and be familiar with the financial markets of Western countries, and gradually become an international company. Hong Kong has long economic and financial ties with other countries, covering the world, and has mature capital markets (such as stock and bond markets). It is now one of the largest markets in the world with market value, ranking among the top in the annual fundraising quota. Over the years, many mainland companies have attracted to list in Hong Kong, or use this as a springboard for overseas entry to integrate into the world economic system .
The above are all the advantages of Hong Kong as an international liaison, and the central government will strive to maintain its position as an international financial center.
Related to this, in recent years, Western countries led by the United States have been uneasy due to the rapid development of China's comprehensive development. In 2018, the then-US president Trump began to suppress China with tariff policies, and then expanded to comprehensive suppression, which became more and more intense.
The United States can make China at any time, such as claiming that some Chinese companies plagiarize US technology and even impose sanctions on the grounds of endangering US national security. If mainland science and technology companies are not allowed to purchase American chips and equipment, production will be hindered; some companies are not allowed to engage in certain businesses in the United States, such as banning Huawei and China Mobile from engaging in 5G business locally.
The most far-reaching impact is that the US side does not allow foreign capital to hold listed Chinese stocks. International index companies and large fund companies must sell them before the deadline and sell their shares. The latest development is to force some Chinese stocks listed in the list from Wall Street to delist from Wall Street on the grounds that they do not comply with accounting standards. I want to accuse me of this, so why not worry about it?
In recent years, the economies of the mainland and Hong Kong are becoming increasingly integrated, and the stock markets of the two places are becoming increasingly linked, and the proportion of Chinese stocks in Hong Kong stocks is becoming increasingly higher. Therefore, if a mainland company is sanctioned by the US side, relevant companies listed in Hong Kong will also be affected, causing fluctuations in Hong Kong stocks.
Since Hong Kong funds are free to enter and exit, all kinds of funds are welcome to invest in Hong Kong. As a result, the Hong Kong market has become a "cash machine" for super big players, and the Hong Kong stock market has fallen the most in the world over the past year, which is terrible.
Many large funds are connected to the world line, and they know the news that affects the rise and fall of Hong Kong stocks and the sensitive news of some companies, such as whether a certain stock needs to be delisted from the United States, whether China will investigate a certain stock, etc., Chunjiang Ya can take the initiative to obtain high profits. Especially in recent years, more and more mainland companies have been listed in the United States in various forms. Major forces can make arrangements in the Hong Kong stock pre-deposit certificate market in the US market one night, causing the Hong Kong market to fluctuate the next day and make profits from it.
Hong Kong stock started from the [closing index] 31084 points (the mid-day high was 31183 points, the same below) in February last year, and then fell to 18415 points (18235 points) in March this year, a sharp drop of 40.8% (41.5%). Weakness Bi Cheng.
Many shares have evaporated by 70% to 80% since the high price last year, and the recent low price is 20% or 30% of the high price last year.Taking the two heavyweight technology stocks as an example, Alibaba (9988) fell from 309 yuan in September 2020 to 71 yuan in March 2022, a sharp drop of 77%; Tencent (700) fell from 775 yuan in February 2021 to 297 yuan in March 2022, a sharp drop of 62%. It has greatly slowed down the performance of Hong Kong stocks.
should be pointed out that Hong Kong stocks will hit Hong Kong's position as an international financial center. The SAR government should not sit idly by and not be ignoring the stock market transactions smoothly. There is no news of investors "going away" or hiding debts flooding the market, so it lets them ignore them.
is arranged in this way, and the major forces have all their advantages, but it is not fair to ordinary Hong Kong investors and funds investing in Hong Kong stocks; Hong Kong people's MPF and provident fund are generally dragged down. I heard that some eye-catching retail investors have completely left the Hong Kong stock market and went to play US stocks . Is it normal for investors in a place to be forced to not buy or sell stocks in their own market in disguise?
Of course, this phenomenon is not unique to the Mainland and Hong Kong. There have been violations in financial markets in other countries such as the United Kingdom and the United States, and news that regulators punish related funds or companies. For example, in the UK, Barclays, the second largest bank in the local area, was accused of manipulating the London Interbank Offering Rate (LIBOR) many times between 2005 and 2009, but was fined $100 million by regulators, and several senior executives resigned.
Another example is that Fed Chairman Powell was involved in insider trading scandals; some reports said that Bao took advantage of the first to know where US monetary policy to sell the US stocks in his hand in October 2020 to avoid the subsequent big market drop. The incident has caused criticism.
At present, no one in the society has noticed the seriousness of the incident. We hope that the regulatory authorities of the central government and the SAR government will issue a solemn statement that the two places will strictly investigate violations and enforce the law vigorously, so that relevant people can restrain themselves and curb the wrong market.
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