To The Moon

Those weight the most.

The first batch of Exchange-Traded Funds to be included in the Hong Kong-mainland Stock Connect program will start trading on July 4,

Eligible ETFs traded on the Shanghai Stock Exchange and Shenzhen Stock Exchange will be open for the first time to all Hong Kong and overseas institutional and individual investors, while those traded on the Hong Kong Stock Exchange will be available for mainlanders. 

It expand the market sample, to a great extent, between exchanges, covering almost all industries and individual stocks. Previously, investors are hard to invest in some small and medium cap stocks directly. Now, they have ETF channels.

ETFs also reduce the risk of concertration, with a large bundle of stocks. The initial list of Northbound Eligible ETFs issued by HKEx is relatively large, as follows:

While the southbound ETFs takes 4 places,

,$TRACKER FUND OF HONG KONG(02800)$ tracks the Hang Seng Index

$HSCEI ETF(02828)$ tracks the Hang Seng H-share index (Hang Seng China Enterprises)

$CSOP HS TECH(03033)$And$ISHARESHSTECH(03067)$ track the Hang Seng Technology Index.

These ETFs in the north serve foreign investment in China; The southbound ones serve more mainland investors who want to go deep into the Hong Kong market. Compared with the 83 stocks in the north, the 4 stocks in the south are more concentrated, which is an opportunity for the Chinese stocks that have not joined the Hong Kong Stock Connect for the time being.

1.There are a majority of individual investors in the mainlandIn 2008, Hong Kong Stock Connect set a threshold of 500,000 RMB, which could not stop enthusiastic investors.

2. Most of the constituent stocks of Hang Seng Index are already on the list of interconnection, and most of the constituent stocks of H shares are companies listed in AH, so, What is really attractive is the constituent stocks in the Hang Seng Technology Index that have not yet entered the exchange list.

3.Hang Seng Technology Index's retracement this year is hugeInternet companies are generally killed for valuation, and now they have reached a relatively low valuation level, which has the basis of bargain-hunting.

4. Although ETFs are only traded in the secondary market, institutions can buy a basket of stocks in the secondary market in exchange for shares if there is more capital inflow, which makes their prices higher than their net asset value. That is to say,This buying of constituent stocks is driven by market funds.

At present, the biggest heavyweight of Hang Seng Technology Index is that it has performed strongly in the last half month$Alibaba(09988)$, followed by$XIAOMI-W(01810)$$JD-SW(09618)$$MEITUAN-W(03690)$, and then it's$TENCENT(00700)$.

The biggest heavyweights of Hang Seng State-owned Enterprises Index are$Alibaba(09988)$$MEITUAN-W(03690)$$TENCENT(00700)$$CCB(00939)$$JD-SW(09618)$

The biggest heavyweights in the Hang Seng Index are$AIA(01299)$$Alibaba(09988)$$HSBC HOLDINGS(00005)$$TENCENT(00700)$.

All in all, Alibaba, Meituan and Tencent still account for the highest proportion.

Due to the recent reduction of Tencent's largest shareholder, Tencent is taking the pressure that this grade can afford and doesn't want to bear. Tencent's shareholders are naturally unhappy, and investors who want to bargain-hunt Tencent may hesitate, or replace it with more than Alibaba or Meituan.

There are still two trading days, let's run together!