Shenzhen Hong Kong Tong 2nd Anniversary cumulative turnover of over 4 trillion yuan

Cumulative cross-border capital net inflow of 110 billion 298 million yuan

Jiang Nan

06 December 2018, 08:29 source: Securities Daily
 

Newspaper reporter Jiang Nan

In December 5, 2018, Shenzhen and Hong Kong ushered in 2nd anniversary. The following data can roughly outline the growth profile of Shenzhen Hong Kong Tong in the past two years.

The total turnover amounted to 4 trillion and 150 billion yuan. Compared with the first month of opening, the average monthly turnover reached 5 times.

The proportion of northward trading increased from 26.05% in the first month to 44.65% in the latest month, and continued to maintain a net inflow of cross-border capital.

The trading volume of the MSCI target increased from 0.54% in the first month to 3.91% in the latest month. Shenzhen Stock Exchange has been recognized by international investors.

In the past two years, the volume of Shenzhen Hong Kong Tong turnover has increased steadily, the system mechanism has been constantly optimized, and its function has become increasingly apparent. It has become an important window for China's capital market to open to the outside world and a bridge link for global investors to share the development of China's innovative economy.

Stable operation for two years, the cumulative turnover of over 4 trillion yuan. In the past two years since the opening of Shenzhen Hong Kong and Shenzhen Stock Exchange, the Shenzhen Stock Exchange has been actively involved in the Hong Kong stock exchange, China Clearing and other related parties to ensure the smooth and orderly operation of Shenzhen Hong Kong business. As of December 5th, the total turnover of Shenzhen Hong Kong Tong totaled 4 trillion and 150 billion yuan, of which, Shenzhen Stock Exchange was running on 467 trading days, with a total turnover of 2 trillion and 870 billion yuan. The average daily turnover increased from 1 billion 541 million yuan in the first month to 9 billion 629 million yuan in the latest month, an increase of 524.85%. The Hong Kong stock market has been running 458 trading days, with a total turnover of 1 trillion and 280 billion yuan, and the average daily turnover has increased from 454 million yuan in the first month to 2 billion 625 million yuan in the latest month, an increase of 478.19%.

Shenzhen Hong Kong Tong plays an increasingly important role in the two-way opening of China's capital market. It has become an important channel for international investors to invest in China, and has played an active role in improving the structure of A share investors.

We will improve institutional arrangements to attract international long-term capital into the market. In 2018, a series of optimization measures, such as daily quota expansion, northbound access mechanism and landing implementation, came down one after another, and improved cross-border cross market supervision and cooperation mechanism, providing investors with a favorable market environment, inject new impetus to the sustainable development of Shenzhen Hong Kong Tong, and also received positive responses from international investors. Statistics show that in May 31st, after the A share was included in the MSCI index, the average daily turnover of Shenzhen Stock Exchange increased significantly. From May 31st to August, the average daily turnover was 9 billion 10 million yuan, which was 6.26% higher than the average daily turnover in the previous three months. In August 31st, when the proportion of A shares increased to MSCI, the Shenzhen stock exchange transaction was further active, and the average daily turnover of the latest month has increased to 9 billion 629 million yuan. The share of Shenzhen Stock Exchange's trading volume increased from 0.54% in the first month to 3.91% in the latest month. As of December 5th, Shenzhen stock exchange held more than 5% stake in the stock market to 21, an increase of 12 compared with last year, of which 5 of the underlying shareholding was more than 10%.

Cross border investment highlights the characteristics of Shenzhen market, and the effect of innovation capital agglomeration is getting more and more obvious. From the perspective of the distribution of funds in Shenzhen Stock Exchange, international investors prefer new industries and high-tech enterprises in Shenzhen and Shenzhen, accounting for 55.87% of small and medium sized enterprises, and 46.29% of the total market capitalization. As of December 5th, 4 of Shenzhen's stock market share of more than 10% of the 5 investors were all small and medium sized board and GEM stocks, with 61.54% of them being small and medium sized board and gem stock, which highlighted the characteristics of Shenzhen's innovative economy.

Over the past two years, the investment value of Shenzhen listed companies has been recognized by international investors. More and more international investors share the achievements of China's economic structural transformation and upgrading through Shenzhen and Hong Kong through the fast lane of China's innovative economic development. The agglomeration effect of Shenzhen global innovation capital formation center is gradually emerging.

Benefiting from the attractiveness of Shenzhen's innovative economy, the share of Shenzhen Stock Exchange in North Trading increased from 26.05% in the first month to 44.65% in the latest month. Shenzhen and Hong Kong have been maintaining a net inflow of cross-border capital for two years. As of December 5th, Shenzhen Stock Exchange accumulated a net purchase of 266 billion 837 million yuan, Hong Kong stocks through the cumulative net purchase of 156 billion 539 million yuan, the cumulative cross-border capital inflow of 110 billion 298 million yuan.

We will accelerate opening up to the outside world and write a new chapter in internationalization. In the past two years, Shenzhen and Hong Kong have taken the opportunity of Shenzhen and Hong Kong as an opportunity to ensure the smooth operation of Shenzhen and Hong Kong through the continuous optimization of the interconnection mechanism and actively integrate into the national opening up strategy, actively serve the national strategy of "one belt and one road", the internationalization of the renminbi, the construction of the big bay area of Guangdong, Hong Kong and Macao, and promote the formation of a new pattern of mutually beneficial and win-win international cooperation. It has joined the United Nations Sustainable Stock Exchange Initiative, the international capital market association and the Asian Financial Cooperation Association, and introduced the experience of the Shenzhen Stock Exchange's front-line regulation and market development, steadily promoting the international development of the exchange, enhancing the radiation and international influence of the Chinese capital market, and writing a new chapter in the opening up of the capital market in the new era.

(Editor: Li Dong, Zhu Yifan)

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