Complete Guide to Hong Kong Stock Market for Chinese Investors

Author: Li Jiaoyao
Publisher:
Publishing Date: 2006-03-01
Features: China's peaceful rise has amazed the world, with its economy repeatedly achieving miracles. The Shenzhou 6 mission's launch has boosted national morale, significantly enhancing the country's comprehensive strength. It is expected that China's GDP will enter the top three globally within five years, and within 10–15 years, it may become the world's second-largest economy. By 20–30 years later, it has the potential to surpass the United States and become a major global economic power. The world is focused on China, an undeniable fact. Currently, over 190 countries and regions have invested in China, and 450 of the world's top 500 multinational corporations (90%) have made investments there, with their investment scales continuously expanding. More and more people believe the 21st century will be China's century. The 2008 Beijing Olympics and the 2010 Shanghai World Expo will propel China's economy into a phase of rapid growth. This is an inevitable trend, the of the world, unstoppable and unimpedable. In fact, after decades of reform and opening-up, China's economy has gradually met the conditions for such growth, and these conditions have now matured. The 2008 Beijing Olympics and the 2008 Shanghai World Expo have created the perfect opportunity to once again propel the rise of all sectors of society. At that time, the entire country will present a scene of leapfrogging progress, and the people will strongly feel a richer, stronger, and more prosperous new China. Let us together feel and welcome this great moment.
From a macro perspective, China's stock market cannot sustain a long-term severe disconnect from the strong growth of its economy. As the domestic securities market becomes more regulated and mature, and as the stock market reform progresses and takes effect, it is believed that the mainland stock market will eventually reflect China's strong economic development and momentum, showcasing its long-term investment value. The force driving the appreciation of the RMB is expected to lift the stock markets of Shenzhen and Shanghai from their lows to recovery. The prospects for China's stock market are bright.
It is a great honor for the author to have this book published by Fudan University Press. The author is deeply grateful to President He of the press for his trust and support. Special thanks are owed to Wang Lianhe and Luo Xiang, who have put in tremendous effort in bringing this book to fruition. It was indeed a challenging endeavor to publish this book when the mainland securities market remained relatively sluggish and the sales prospects for securities-related books were uncertain. The author had conceived this book some time ago, but due to the market's performance and development falling short of expectations, the publishing plan faced variables and risks. The publishing process encountered numerous difficulties, and both the press, Wang Lianhe, and the author faced considerable pressure. Fortunately, everyone worked together to overcome these obstacles, and it is hoped that the final product will be a valuable and useful book for readers.
Since Hong Kong's handover eight years ago, Chinese companies have quietly revolutionized the Hong Kong securities market, bringing about earth-shaking changes. Their influence is unparalleled by other types of stocks. Not only has the number of Chinese companies listing in Hong Kong surged, but their market capitalization has also grown steadily. For instance, the recently listed China Construction Bank alone has a market value exceeding 500 billion yuan. Currently, over 200 Chinese companies are listed in Hong Kong, accounting for about 20% of all listed companies, with a total market value exceeding 2.4 trillion yuan, representing over 31% of Hong Kong's total market value. Their average daily trading volume accounts for one-third to one-half of the overall market's total. They are deeply favored by investors and retail traders alike.
Looking ahead, with the full support of the central government, Hong Kong's status as an international financial center will be further strengthened. As insurance and foreign exchange funds, as well as social security funds, are expected to invest overseas, and as Qualified Domestic Institutional Investors (QDII) may be introduced in the future, more capital is likely to flow into Hong Kong to invest in China-related stocks. The long-term prospects for Chinese companies listed in Hong Kong are absolutely promising.
This book introduces readers to nearly 100 Chinese companies listed in Hong Kong, including the well-known state-owned enterprises (H-shares), blue-chip Chinese companies, red-chip stocks, and alternative Chinese companies, such as those related to the 2008 Beijing Olympics, representative private enterprises, and other highly Chinese concept stocks. It aims to provide readers with a basic and comprehensive understanding of Chinese companies listed in Hong Kong, offering more data and options for future investment and increasing the chances of success.
Finally, the author would like to express his heartfelt gratitude once again to Wang Lianhe, Luo Xiang, President He of Fudan University Press, and all colleagues involved. Special thanks are also extended to all friends who have supported and cared about the publication of this book.