“Capital is flowing into the city. The more intense the rivalry between the U.S. and China, the more unique Hong Kong will be as a centre to welcome back leading Chinese companies listed in the U.S.,” said Hao Hong, managing director at BOCOM International.
With many more Chinese listings in the pipeline, “such investment opportunities can last for at least two years, potentially generating annualised returns of 20%,” said Richard Li, general manager of Shanghai-based Regan Fund Management Co, which has been actively investing in such listings.The surge in investment from the mainland comes as Hong Kong becomes increasingly isolated from traditional western trading partners due to Beijing’s growing political reach into the financial hub.
China’s new National Security Law for Hong Kong, effective last week, is the latest flash point between Beijing and Washington, adding to other points of tension such as trade and tech supremacy.Southbound turnover under the cross-border Stock Connect hit record levels on Monday. Net mainland purchases of Hong Kong stocks under connect totaled HK$300 billion during the first six months, exceeding last year’s total.
Mainland money is largely behind the 230% surge this year in Hong Kong-listed shares of Semiconductor Manufacturing International Corp , which is expected to command lofty valuations when it lists on Shanghai’s STAR Market. For Hong Kong stocks such as SMIC, “what’s happening in the China market is changing the companies’ narratives,” Liu Youpu, partner at Shanghai-based hedge fund house Aifanzhe Investment Management Co said.Reporting by Samuel Shen and Noah Sin; Editing by Sam Holmes
Cut Africa off from China and bam
China economy is a national Ponzi scheme
Because national security laws bring stability and stability, which is good for the economy. (If you have to think I'm a robot, I won't defend myself.😒)
No risk buying LACQW