playcandycrushsoda| The Hang Seng Index continues to rise Hong Kong-stock themed ETF net value dances in the wind

Wang Xiaowei, a reporter from the Securities Times

Hong Kong's capital market has rebounded recently, driving the Hong Kong stock theme ETF to dance in the wind. On the one hand, ETF related to Hong Kong stocks continued to dominate the list of cross-border ETF gains this week.PlaycandycrushsodaOn the other hand, a number of Hong Kong stock theme ETF net worth has reached a new high since its inception, becoming the "prettiest" among a group of ETF funds.

On May 17th, Hong Kong shares of non-bank ETF rose by 3%.Playcandycrushsoda.85%, the net worth reached a new high of 1.052. From its investment portfolio, Ping an of China (601318), the Hong Kong Stock Exchange, AIA and other leading financial companies are impressively listed, tracking the CSI Hong Kong Stock Connect non-bank financial theme index.

This is just one of the representatives of Hong Kong stocks related ETF dancing in the wind. Since the beginning of this week, the net worth of products such as Hong Kong Stock Exchange ETF, Hong Kong Stock Connect Financial ETF, Hong Kong Stock Exchange ETF and other products have all reached new highs since their inception, while ETF in Hong Kong market segments such as Hong Kong Stock Connect 50, state-owned enterprises, consumer and health care have also risen. In the cross-border ETF with the highest net worth return throughout the week, Hong Kong-themed products also occupy the absolute main force.

The successive surge reflects the collective positive expectations of funds for the economy. At the same time, some market participants believe that it has something to do with news expectations such as dividend tax. A few days ago, there were rumors in the market that Hong Kong stocks could be exempted from profits and tax. although they had not been officially confirmed, they attracted the enthusiasm of the market for investment. According to an institutional analysis, if the tax relief for Hong Kong stock dividends is implemented, it is expected that the direct tax relief brought about by this potential adjustment will be about HK $10 billion a year, which will help boost the attractiveness of Hong Kong stocks with high dividends, enhance the liquidity of Hong Kong stocks, and even help reduce the AH premium of some companies.

For companies listed in both A-shares and Hong Kong stocks, the smaller the premium, the cheaper H-shares are compared with A-shares, and the more cost-effective investment. Take Zhejiang Shibao (002703) as an example, on May 17, A shares were 12.39 yuan per share, H shares were 2.33 Hong Kong dollars per share, and the AH premium rate was more than 430 per cent.

A person who has long been engaged in proprietary business at a securities firm in Beijing told reporters that the trigger for the rise in Hong Kong stocks can be traced back to earlier. "in April this year, the CSRC issued a number of capital market cooperation measures with Hong Kong to encourage leading mainland enterprises to list in Hong Kong. Since then, Hong Kong stocks have opened a continuous rising mode. In April this year, Hong Kong stocks firmly ranked first in the world's major stock index gains.

Capital is the running water for the recovery of Hong Kong stocks. At present, although the US interest rate cut is still inconclusive, other levels of "smart funds" have begun to actively allocate Hong Kong stocks.

Data from the Choice financial terminal show that southbound capital has been in a net inflow in the first four months of 2024, with net purchases of Hong Kong stocks exceeding HK $200 billion during the year, accounting for more than half of the total net purchases last year.

For investors in the A-share market, there are mainly two channels to invest in Hong Kong stocks: one is to open a Hong Kong stock account for direct investment, and the other is to make indirect investment through A-share listed Hong Kong stock theme funds. The latter has comparative advantages in terms of threshold, transaction and so on.

With the strong performance of a number of Hong Kong stock theme ETF, there is a premium in some cases, especially under the enthusiasm of capital, the premium for products with low quota is even more obvious. This is similar to the frequent premium of gold-themed ETF and gold-themed LOF products some time ago. At the same time, there is also a discount on some Hong Kong stock theme ETF, such as consumer and technology.

But one thing is the same. The ETF of Hong Kong stocks has attracted an influx of incremental capital and the share of products has increased significantly. Public statistics show that since April, the net inflow of capital into Hong Kong stock dividend ETF, Hong Kong stock technology 30ETF, gold stock ETF and other products has exceeded 400 million yuan, and the net purchase share of many Hong Kong stock ETF has exceeded 1 billion.