The two major listed on the market will return to Hong Kong's new trend. The Hong Kong new stock market is still available in the second half of the year.

As a major means of returning to Hong Kong in China, the second listing is often a more common form in the market, but since this year, double listing has begun to "gradually become the mainstream."

Author: Monday Sail

Figure: Tuwa Creative

"Double main listing" has gradually become a new trend of Chinese stocks.

On July 5th, graffiti intelligence (02391.HK) officially landed on the Hong Kong Stock Exchange. The company had previously been listed on the New York Stock Exchange in March 2021. This time, returning to Hong Kong was the main listing of dual listings, that is, the NYSE and the Hong Kong Stock Exchange were first listed.

The reporter found that at the moment when China stocks frequently returned to Hong Kong, companies that chose dual listed companies like graffiti intelligence began to increase gradually. As of July 6, since this year, Weilai (09866.HK), Shell (02423.HK) and Zhihu (02390.HK), Financial One Tong (06638) Among them, shells, Zhihu, and financial accounts choose dual main listing. At the same time, in the return of the Hong Kong stock market in July, Mingchuang Youpin (09896.HK) will also realize the listing of Hong Kong stocks through the same means.

In addition, just on the evening of June 30, Bilibili (9626.HK) also announced on the Hong Kong Stock Exchange that the company's dual major listing conversion proposal was approved by the shareholders' anniversary. To stop, the company will continue to make necessary arrangements to promote all the listing rules applicable to the dual listed issuer as the double major listing issuer after the effective date. The U.S. listed company Jinshan Yun (KC.US) also disclosed as early as March that the company is exploring the double listing on the main board of the Hong Kong Stock Exchange in order to better provide the company's shareholders more abundant in the current market and regulatory environment. Lobricity and guarantee.

"On the one hand, the double listing can fully meet the regulatory requirements of the two places. It is not much different from the local listing. It is more likely to be accepted by international investors. Lay the foundation. But on the other hand, because it is necessary to meet the supervision requirements of the two places at the same time, the listing process is more complicated, and it takes more time and cost. "Futu Investment Research Team told the Economic Observer Network reporter.

At present, there are three ways to return to the listing of Hong Kong stocks in China. It is mainly divided into: privatization and delisting, come to Hong Kong to apply for listing, mainly listed in Hong Kong (double listing), and secondary listing.

In this regard, Zhou Lin, the executive director of Huasheng's vision of corporate service, told reporters that the specific operations of various methods are different. It does not matter which one is absolutely optimal. Usually, the company will also follow the applicability of the specific situation of the company and the future capital market. Development demands for comprehensive assessment.

New trend of returning to Hong Kong in China

As a major means of returning to Hong Kong in China, the second listing is often a more common form in the market, but since this year, double listing has begun to "gradually become the mainstream."

"Double listing refers to the first listing of the two capital markets. In the case of listing in the US market, the Hong Kong market is issued and listed in accordance with the local market rules. Completely consistent, the stocks of the two markets cannot be circulated across the market, and the stock price performance is relatively independent, which may generate a spread. "Futu Investment Research Team personnel introduced to the Economic Observation Network reporter.

Relatively speaking, the second listing refers to the company of the same type of stocks listed in the two places. Through international custodian banks and securities brokers, the shareholding circulation of shares is realized. This method is mainly based on deposit vouchers (DR) The form exists. In this way of issuance, first purchase a certain amount of stocks from foreign companies, and all these stocks are custody in the banks. The bank will pack these stocks owned by the banks and sell the securities that represent the basket of this basket.

People from Futu Investment Research team further stated that if the company is listed in a financing type DR, the source of the basic shares is the company's newly issued ordinary shares. In terms of pricing, the corresponding DR is based on the price of the pricing date, the company's market price on the original market is converted, and a price is determined by the issuer and the underwriter. The second listing method of returning to Hong Kong.

It is worth mentioning that on March 31, 2021, the Hong Kong Stock Exchange published a consultation document to relax the threshold of overseas issuers, and subsequently published a consultation summary of the recommendation and simplification of overseas issuers' listing system on November 19th. The qualifications of the second listing and double listing have been relaxed in 2022, and the legal system guarantee has been paved for the return of China Stocks.

From the perspective of specific content, after the system revision, the threshold for the second listing and double listing has declined, mainly reflected in: no longer limited must be an innovative industry company; The exchanges (Nasdaq, the New York Stock Exchange or the London Stock Exchange) have been listed for 2 years, with a market value of 40 billion Hong Kong dollars, or a market value of 10 billion Hong Kong dollars and revenue of more than 1 billion Hong Kong dollars in the last year. " The exchanges have been listed for 5 years, with a market value of more than 3 billion Hong Kong dollars or two years of listing, and the market value exceeds 10 billion Hong Kong dollars. " Then turn to double major listing.

Founder Securities Analyst Yang Xiaofeng pointed out in the relevant research report that due to the condition of "listed on the Qualification Exchange and maintaining a good compliance record during the qualification exchange" during the second listing of the Qualification Exchange in Hong Kong, It has become a new choice for a company that has been listed in less than 2 years. In fact, Zhihu and Mingchuang Youpin companies both use this condition to achieve returning to Hong Kong in a short period of time. On March 26, 2021, Zhihu was officially listed on the New York Stock Exchange. On April 22, 2022, Zhihu was officially "double listed" in Hong Kong, China. On October 15th, Mingchuang Youpin was listed on the NYSE. On March 31, 2022, the company submitted a listing application to the Hong Kong Stock Exchange. Essence

According to incomplete statistics from reporters, since the Hong Kong Stock Exchange in April 2018, in accordance with the new chapters of the Main Board Listing Rules, as of July 6, 2022, more than 20 Chinese stocks returned to the Hong Kong Stock Exchange. 06160.HK), Xiaopeng Automobile (09868.HK), ideal car (02015.HK), and Huang Medicine (00013.HK), Zhihu, Shell, and Cadder Intelligence are returned to Hong Kong through dual major listing.

Double listing VS secondary marketing

From a market perspective, compared with the second listing, double listing has its own unique characteristics and advantages.

"Because the second listing and dual listing are large in terms of supervision and cross -border circulation, the advantages and disadvantages are also different. The advantage of listing is that it can be included in the Hong Kong Stock Connect, and then has a greater shareholder foundation, but the process of listing is more complicated and costs higher. "Bi Mengzhang, a subsidiary of Golden Camphor Investment, told reporters.

Lu Yunting, an analyst of Zhongtai Securities, also stated in the research report that companies that listed for the second time do not need to meet the standards of the Hong Kong Stock Exchange's own listing; that is, the legal identity of the company in Hong Kong stocks comes from its transactions that have been recognized by the Hong Kong Stock Exchange. Once the company is listed, once these companies are delisted in the United States, their listing status in Hong Kong stocks will be impacted and uncertain; and stocks that are listed for the second time cannot be listed as interconnected bids, but double listing stocks can be. , Xiaopeng Automobile and Baiji Shenzhou have entered the list of Hong Kong stocks.

The Futu Investment Research team also added that the second listing pricing is basically the same as the original market. If the original market price fluctuates and falls out of the pricing range, it will be higher.

Talking about the impact of the double market price difference, the Futu Investment Research team pointed out that "For companies with large market value or relatively active transactions, the difference in mobility is small. Or the company that is relatively sluggish, insufficient liquidity will indeed bring less liquidity discounts, but the overall discount rate is very low. "

It is worth mentioning that according to the "Listing Rules" of the Hong Kong Stock Exchange, the second listed company can voluntarily transform the "second listing land" into "main listing land", and because the existing enterprises have entered the Hong Kong Stock Connect through "double listing", Some people in the industry believe that the "second listing" to "double listing" may become a future trend.

As early as March 16, Bilibili issued an announcement saying that it would be voluntarily converted to the main board of the main board in Hong Kong United Trading Co., Ltd.'s main board. After the main listing and conversion matters, Bilibili will still be a double listing company on the main board of the Hong Kong Stock Exchange and the Nasdaq Global selection market. Sale in the exchange (depending on the situation), and can continue to be converted to each other.

"Double listing will become a choice of more and more regression of China stocks. Although the compliance cost and time value of the double major listing, the expanded shareholders' foundation and continuous funding support are more important for the company's operations, and can join the Hong Kong Stock Connect. It is a good opportunity and even the possibility of re -listing in A shares. Some companies that have been listed in Hong Kong stocks are also actively converting to dual listing. "Bi Mengyi said.

At present, Bilibili has issued an announcement on June 30 that the company's dual major listing conversion proposal has been approved by the annual meeting of the shareholders.

Hong Kong stocks are still available in the future

Looking back on the first half of 2022, although the overall performance of the Hong Kong stock market is weak, from the perspective of many institutions, because Hong Kong, Hong Kong, has the geographical advantages close to Mainland China, and the capital flow mechanism with the mainland market, the current Chinese enterprises go public in the United States to list Facing uncertainty, Hong Kong, China, will still be the first choice for China Stocks to return to listing in the future.

"In the past two years, the situation of China -stock stocks is not optimistic. First of all, the US regulatory agencies were chased and blocked, and they were also included in the identification list. In this case, the stock price of China stocks has been diarrhea. Recently The panic selling caused by liquidity shocks has slowed significantly, and Chinese stocks have also experienced a staged bottom -out trend. "Bi Mengxuan said.

It further stated that at the same time, the qualifications of relaxing the second listing and double listing are also paving the policy of welcoming China -stock stocks, and can better hedge related risks. After relaxing the threshold, the operation of the second listing or double listing in Hong Kong will be more flexible and convenient, and it will also attract more high -quality traditional industries.

Zhou Lin believes that the Hong Kong Stock Exchange is always known for its openness, tolerance, development and innovation. The newly proposed reform cannot simply be defined as "reducing standards", but to enhance the reputation of the Hong Kong Stock Exchange as the preferred place for the listing of the global enterprises to be investors. Provide more investment opportunities and provide better and more convenient financing platforms for global high -quality companies. The new framework provides convenience for enterprises in the new generation of international and regional plans to be listed in Hong Kong, which will help the Hong Kong Stock Exchange in order to handle the IPO application of the second listing or double listing in Asia. In addition, KPMG pointed out in the research report of the "Review of Mainland China and the IPO Market in Hong Kong and the First Half of 2022" that this year, the SPAC listing mechanism in Hong Kong, China has also started steadily. At present Listing. The SPAC listing mechanism is expected to inject new impetus into the Hong Kong market in China this year, attracting more new economic companies including new energy, healthcare, biotechnology and green finance on the China Hong Kong Stock Exchange.

"Based on the relevant policy background of the Sino -US Trade and the US Securities Regulatory Commission, many China -stock stocks return demands strongly. I believe that the Hong Kong Stock Exchange has a variant policy adjustment. Big favorable news. "Zhou Lin told reporters.

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