Mainland and Hong Kong seek ＂mutual benefit and win-win＂ favorable policies to activate Hong Kong’s capital market.

CCTV News:Recently, the trend of Hong Kong stocks has rebounded in stages. Since the end of January this year, Hong Kong stocks have also performed more brightly in the world’s major stock indexes. Industry experts said that the recent trend of Hong Kong stocks is closely related to the continuous inflow of incremental funds.

Data show that in the first four months of this year, "southbound" funds flowed into the Hong Kong stock market, exceeding HK$ 210 billion.

Experts said that the inflow of incremental funds is closely related to the improvement of the quality of Hong Kong stocks. The data shows that from 2019 to now, the market value of mainland enterprises in Hong Kong stocks has always accounted for more than 70% of the total market value of Hong Kong stocks, and the businesses of more and more Hong Kong listed companies are also closely related to the mainland. In the first quarter, a number of economic data showed a positive trend, which also became a solid support for Hong Kong stocks.

Hong Kong Stock Connect Open Index Fund ushered in its first expansion this year.

In addition to the direct inflow of funds from the south into Hong Kong stocks, there is also a channel to invest in trading open index funds (ETFs) in Hong Kong stocks. A few days ago, the Hong Kong Stock Connect trading open index fund also ushered in the first expansion in the year, and the cooperation with Hong Kong is constantly landing.

The Shanghai and Shenzhen Stock Exchanges recently announced the adjustment of the list of trading open-end index funds of Hong Kong Stock Connect, and two trading open-end index funds were included in Hong Kong Stock Connect. This adjustment is the first expansion of the list of trading open index funds of Hong Kong Stock Connect this year.

In April this year, the China Securities Regulatory Commission specially relaxed the range of qualified trading open index fund products of Shanghai-Shenzhen-Hong Kong Stock Connect by adjusting the product scale and investment scope, so that more products could be included.

Simply put, through the interconnection mechanism, investing in Hong Kong transactional open-end index funds is called "southbound" transactional open-end index funds; Investing in mainland trading open index funds is called "northbound" trading open index funds.

Deepen cooperation, accumulate favorable policies and activate Hong Kong’s capital market.

Experts said that since the beginning of this year, especially recently, the cooperation between the mainland and Hong Kong in the capital market has been deepening, which has also laid the foundation for the active capital market in Hong Kong.

Since the beginning of this year, policies to optimize the cross-border interconnection mechanism and promote the coordinated development of the capital markets of the two places have been continuously introduced:

On March 13th, the China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission indicated that they agreed to continue to strengthen pragmatic cooperation in capital markets and cross-border supervision and law enforcement cooperation between the two places, so as to jointly promote the complementary advantages and coordinated development of the two markets.

On April 12th, in the new "National Nine Articles" of the capital market, it was clearly pointed out that "we should persist in coordinating the high-level institutional opening and security of the capital market and expand and optimize the cross-border interconnection mechanism of the capital market" and other arrangements.

On April 19th, the China Securities Regulatory Commission issued five measures for cooperation between the capital market and Hong Kong, including relaxing the range of eligible products of the Shanghai-Shenzhen-Hong Kong Stock Connect ETF, so as to further expand and optimize the Shanghai-Shenzhen-Hong Kong Stock Connect mechanism, help Hong Kong consolidate and enhance its position as an international financial center, and jointly promote the coordinated development of the capital markets of the two places.

Among these five measures, it is specifically mentioned to support leading enterprises in mainland industries to go public in Hong Kong. At the end of April, four companies submitted their IPO prospectuses to the Hong Kong Stock Exchange on the same day. The data shows that at present, there are nearly 100 listing applications being approved by the HKEx, and dozens of them have applied for listing in Hong Kong at the mainland regulatory authorities, including enterprises from AI artificial intelligence, financial technology, manufacturing, logistics and other industries.