Recently, the state issued the "Three-year Action Plan for the Construction of a World-class Business Environment in the Guangdong-Hong Kong-Macao Greater Bay Area", studying to further cancel or relax restrictions on Hong Kong and Macao investors' qualifications, shareholding ratios, industry access and other restrictions. More than 60% of A-share enterprises in Shanghai and Shenzhen have received Hong Kong capital injection.
*: Photo.comRelaxation of restrictions on Hong Kong and Macao investors
On December 25, 2023, the state issued the "Three-year Action Plan for the Construction of a World-class Business Environment in the Guangdong-Hong Kong-Macao Greater Bay Area" (hereinafter referred to as the "Plan").
The Plan points out that the Guangdong-Hong Kong-Macao Greater Bay Area is one of the regions with the highest degree of openness and the strongest economic vitality in China, and has an important strategic position in the overall development of the country. In order to implement the decision-making and deployment, further deepen the cooperation between Guangdong, Hong Kong and Macao, create a market-oriented, law-based, international, first-class business environment, and enhance the level of market integration and international competitiveness of the Greater Bay Area, this plan is hereby formulated.
According to the plan, after three years of efforts, the Guangdong-Hong Kong-Macao Greater Bay Area has basically established a business environment system that is in line with international rules, the system and mechanism of joint consultation, joint construction and sharing have operated more smoothly, the market-oriented, law-based and international business environment has reached the world-class level, the market vitality and social creativity have been fully released, the level of market interconnection has been significantly improved, the ability to gather and allocate various resource elements on a global scale has been significantly enhanced, and the international competitiveness of the business environment ranks among the top in the world.
Among them, in terms of optimizing the market access environment, we have formulated and introduced special measures to relax market access in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, supported Nansha in Guangzhou to carry out a pilot project to relax market access, and further promoted the implementation of special measures to relax market access in Shenzhen, a pilot demonstration zone of socialism with Chinese characteristics. Carry out market access efficiency assessments for the nine mainland cities in the Greater Bay Area, smooth the feedback channels for business entities on hidden barriers to market access, and improve the feedback mechanism for handling opinions.
Study further removing or relaxing restrictions on Hong Kong and Macao investors, such as qualification requirements, shareholding ratios and industry access, and incorporate the relevant liberalisation measures into the framework of the Closer Economic Partnership Arrangement (CEPA) between the Mainland, Hong Kong and Macao. Clean up the unreasonable conditions set for cross-regional operation and relocation of enterprises, and promote the smooth flow of factor resources.
In addition, we will steadily promote the interconnection of financial markets. Expand the opening up of the financial sector to Hong Kong and Macao, and support the Shenzhen ** Stock Exchange, the Guangzhou ** Stock Exchange and the Hong Kong Stock Exchange to deepen practical cooperation. We will do a good job in the Southbound Trading of Bond Connect and accelerate the two-way opening up of the bond market. Explore piloting cross-border credit reporting cooperation in eligible areas in the Greater Bay Area, establish a mutual recognition mechanism for credit reporting products in Guangdong, Hong Kong and Macao, and enhance the capacity of cross-border financing credit services. Support Hong Kong and Macao financial institutions to conduct business in the mainland of the Greater Bay Area in accordance with laws and regulations, and promote the development of insurance service centers in the Guangdong-Hong Kong-Macao Greater Bay Area. Support eligible Hong Kong and Macao financial institutions and non-financial enterprises to issue financial bonds and corporate credit bonds in the Mainland.
More than 60% of A-share enterprises have been injected by Hong Kong
According to the data of Choice Financial Terminal, among the more than 2,800 SZSE A-shares, 1,758 companies have Hong Kong shareholders, accounting for more than 60%, and 1,526 companies have opened SZSE Stock Connect. In addition, Hong Kong Clearing is one of the top 10 shareholders of more than 1,000 A-share listed companies on the Shenzhen Stock Exchange.
Among them, the highest proportion of Hong Kong capital is Inovance Technology (300124).SZ), Hong Kong capital accounted for 2240%, the number of shares held is 59.8 billion shares, Hong Kong **Clearing*** is the largest shareholder of Inovance. In addition, 24 SZSE A-share listed companies hold more than 10% of Hong Kong shares, and 81 SZSE A-share listed companies hold more than 5% of Hong Kong shares. In addition, Hong Kong's **Settlement*** is also Ping An Bank (000001SZ), Vanke A (000002SZ), Midea Group (000333SZ) and many other well-known enterprises are among the top ten shareholders.
Data**: Choice financial terminal Inovance's technology business is mainly divided into general automation (including industrial robots), smart elevators, new energy vehicles, and rail transit.
According to the announcement, in the early stage of the company's listing in 2010, Inovance's equity was scattered and there was no controlling shareholder. Shenzhen Inovance Investment*** hereinafter referred to as Inovance Investment) holds 20.25 million shares of Inovance Technology, accounting for 18% of the total share capital after issuance75%, the largest shareholder of the company. As of the end of the first quarter of 2021, the company's top two shareholders were 1803%, Hong Kong **Clearing*** shareholding ratio rose to 966%γ
In the announcement in March 2022, the company's largest shareholder was changed to Hong Kong **Clearing***, accounting for 1823%, while the proportion of Inovance investment decreased to 1765%γIt is worth noting that in the announcement on December 8, 2023, the company's largest shareholder, Hong Kong **Clearing***, has risen to 2226%γ
At the same time, the three A-share companies of the Shanghai Stock Exchange accounted for more than 20% of Hong Kong capital.
According to the data of Choice Financial Terminal, as of December 25, 2023, among the 2,257 SSE A-shares, 1,513 companies have Hong Kong shareholders, accounting for more than 67%, and 1,340 companies have opened Shanghai-Hong Kong Stock Connect.
Among them, the highest proportion of Hong Kong capital is Hongfa shares (600885SH), Hong Kong capital accounted for 2257%, the number of shares held is 23.5 billion shares, Hong Kong **Clearing*** is the second largest shareholder of Hongfa shares. In addition, 3 SSE A-share listed companies have Hong Kong ownership of more than 20%, 19 SSE A-share listed companies have Hong Kong shareholding of more than 10%, and 84 SSE A-share listed companies have Hong Kong shareholding of more than 5%. In addition, Hong Kong **Settlement*** is also the Shanghai Pudong Development Bank (600000.SH), Baosteel Co., Ltd. (600019SH), Sinopec (600028SH) and many other well-known enterprises, the top ten shareholders.
Data**: Choice Financial TerminalDuring the year, there was a huge difference in net inflows between the two ends of Stock Connect
According to the data of Choice Financial Terminal, as of December 26, 2023, the net amount of Shanghai-Hong Kong Stock Connect was 1380.5 billion yuan, of which, the 5-month net ** was negative, and the lowest appeared in August, which was -4816.1 billion yuan, the 7-month net ** amount was positive, and the highest appeared in January, which was 7055.5 billion yuan;The net amount of SZSE was 1122.9 billion yuan, of which, the 7-month net ** was negative, and the lowest appeared in August, which was -4152.2 billion yuan, the 5-month net ** amount was positive, and the highest appeared in January, which was 7073.4 billion yuan.
In contrast, as of December 26, 2023, the net amount of Shanghai-Hong Kong Stock Connect was 15160 billion yuan, of which, the net ** amount in 3 months was negative, and the lowest appeared in June, which was -291.4 billion yuan, the 9-month net ** amount was positive, and the highest appeared in August, which was 4576.1 billion yuan;The net amount of Shenzhen-Hong Kong Stock Connect was 13429 billion yuan, of which, the net ** amount in 2 months was negative, and the lowest appeared in June, which was -296.7 billion yuan, the 10-month net ** amount was positive, and the highest appeared in March, which was 3189.3 billion yuan.
According to public information, there are significant differences between the Shanghai and Shenzhen stock exchanges and the Hong Kong market.
The Shanghai and Shenzhen stock exchanges are organized in the form of a membership system, mainly by ** investors, with a third-party depository system, a bank-securities transfer system, a T+1 trading system, short selling rules including put warrants and securities lending, and new stock subscription brokers do not provide financing quotas, the winning rate is low, the dividend payout is unstable, and it cannot be overdrawn.
The Hong Kong market is organized in the form of a corporate system, dominated by overseas and institutional investors, there is no third-party depository system, bank-securities transfer system, T+0 trading system, short selling rules include **, options, put warrants, new share subscription brokers provide up to ninety percent of the financing line, high winning rate, bank stocks and other dividends are generally high, can be overdrawn.