01 view
Written by: Commentary Editing Room
2021-03-25 17:10
The last update date: 2021-03-25 17:10
On Wednesday (24th), the U.S. Securities and Exchange Commission (SEC) announced that it had passed the "Interim Final Amendment" in response to the "Foreign Company Accountability Act" (HFCA Act) signed by the previous President Trump at the end of his term. ).
The amendment requires companies listed in the United States to comply with American auditing standards. If they fail to be audited, they must prove that they are controlled or owned by foreign governments, otherwise they will be required to delist.
The bill tightened audit requirements and is generally considered to be aimed at Chinese companies. It caused many Chinese concept stocks listed in the United States to plummet on that day, and many popular Chinese concept stocks recorded a single-day drop of more than 20%.
The actual impact of the new rules on Chinese concept stocks listed in the United States is still unknown. However, under the struggle between China and the United States, the United States will not subside in the short term against Chinese companies in the name of foreign government control.
At the same time as the crisis, the new rules also brought another opportunity.
Faced with the continuous tightening of stock market rules in the United States, Chinese companies naturally have greater incentives to return to Hong Kong to list in order to diversify risks.
Therefore, the Hong Kong Stock Exchange of Hong Kong stocks the next day was affected by this. After opening lower, it rebounded quickly, rising by nearly 7% from the lowest level of the day.
Many Chinese concept stocks have outstanding performance
The tightening of restrictions on Chinese companies by the United States is actually a rare opportunity for Hong Kong. It will have a long-term positive impact on Hong Kong's financial market. Hong Kong must seize the opportunity to strengthen and consolidate its status as a gateway to China and a financial center.
Of course, this is not to say that "everything is good", but in addition to the reason why Chinese companies are linked to "China," many of them are also very high-quality.
For example, Tencent, which has been listed in Hong Kong for many years and has been called the "share king" by investors, has experienced unabated popularity for many years and remains the largest traded stock in Hong Kong.
The latest distribution of its performance shows that its non-GAAP profit last year was as high as RMB 122.7 billion, an increase of 30.1% year-on-year.
This is still the case despite the new crown epidemic, and it can be regarded as one of the best in the world.
Some popular Chinese companies listed in Hong Kong also performed well. For example, Alibaba and Xiaomi both recorded nearly 30% year-on-year profit growth in the previous quarter.
In recent years, many Chinese companies have returned to Hong Kong for listing. Among them, high-quality Chinese companies have brought huge transactions to the financial market, stimulating and revitalizing the local financial market.
For example, the trading volume of Hong Kong stocks has increased considerably in 2020, with an average daily turnover of HK$148 billion, an increase of 86% year-on-year.
The average daily turnover in January and February of this year was also between 230 and 240 billion, an increase of more than 100% year-on-year.
Earlier, Hong Kong announced an increase in stamp duty on stocks from 0.2% to 0.26%, causing market concerns that it would have a major impact on the financial market.
Regardless of whether the stamp duty really has a significant impact, the US policy at this time will undoubtedly provide Hong Kong with opportunities.
If Hong Kong can continue to grasp the trend of the return of Chinese capital and attract more high-quality companies with growth potential and development potential to list in Hong Kong, why worry about stamp duty affecting Hong Kong's status as a financial center?
Can the Hong Kong Stock Exchange attract Tesla to list in Hong Kong?
SPAC may become the "big fat" of the Hong Kong Stock Exchange
The Hong Kong Stock Exchange needs to ride the wind and waves
Viewpoints of China Stock Exchange 01