Digital shock: A comparison of Hong Kong and Shenzhen stock markets

April 4, 2007, in Wednesday, the Hong Kong Hang Seng Index closed at 20209.71, the Shanghai Composite Index closed at 3292.28;　　Through this day's closing data comparison found: In the peak of the bull market in Hong Kong, Shanghai, deep three stock market, the difference is huge, indeed surprising!　　(1) The overall size of the mainland stock market (especially the circulation market value) is small. April 4, 2007, Hong Kong, Shanghai and Shenzhen, respectively, the total market value is: Hong Kong motherboard HK $13.74 trillion, Shanghai stock exchange of 10.3 trillion yuan, Shenzhen A-share 2.81 trillion yuan.　　The total market value of a shares in Shanghai and Shenzhen is 13.11 trillion yuan, but still less than the total market value of Hong Kong. If the market capitalisation is compared, the mainland markets are smaller.　　According to the closing price of the day: the total circulation of the Shanghai stock market is only 2.6 trillion yuan, the stock exchange of the total circulation market value of only 1.3 trillion yuan, Shanghai and Shenzhen A shares of the total circulation market value of only 3.9 trillion yuan, roughly equivalent to the Hong Kong motherboard circulation market value of about 1/3.　　(2) The number of trading shares in mainland China is small but the turnover is large, which is obviously caused by high stock price. April 4, 2007, the total number of the Hong Kong main board turnover of 55.7 billion shares, while the mainland a-shares total turnover of 16.9 billion shares. But because the mainland a shares of the overall stock price is very high, therefore, in the turnover, the mainland a A-share has surpassed the Hong Kong motherboard.　　On that day, the total turnover of Hong Kong's main board amounted to HK $51.7 billion, while the mainland a-shares turnover was as high as 172.4 billion yuan.　　(3) The mainland A-share price-earnings ratio of 3 times times the Hong Kong motherboard, seriously high. Not only the overall market size of the mainland is small, but also the P/E ratio is seriously high. April 4, 2007, Hong Kong, Shanghai and Shenzhen, the average P/E ratio is: Hong Kong motherboard 15.92 Times times, Shanghai A shares 45.74 times times, Shenzhen A shares 42.9 times times.　　That is to say, the average price-to-earnings ratio of a mainland a-share is about 3 times times that of the Hong Kong board, which obviously has a very high price/earnings ratio. Of the 940 stocks listed on the Hong Kong board, 71 have a price-to-earnings ratio of less than 5 times times, while the other 174 shares have a price-earnings ratio of 5 to 10 times; And in the mainland listed 1436 A shares, there is no price-earnings ratio of less than 10 times times the stock! The P/E ratio is 10-15 times times, with 131 Hong Kong motherboards and only 8 mainland shares.　　That is to say, there are only 8 mainland shares with a 15 times-fold ratio, while the Hong Kong motherboard has 376! Instead, in the most powerful stocks that can calculate a P/E ratio (excluding stocks with negative earnings per share): Multiples of more than 1000 times times, the mainland A shares of 33, Hong Kong motherboard has 3, the price-earnings ratio of 500 times times-1000 times times, the mainland A shares of 46, Hong Kong motherboard only 1; -500 times times, the mainland a-share has 293, fragrantThere are only 27 motherboards in Hong Kong. Comparison of stock price distributions between mainland China and Hong Kong (April 4, 2007 close) share price distribution (yuan/HK $) Mainland China A (number) Hong Kong motherboard (number) 100 Yuan 1750--100121520--301604410--20470585--106711013--　　5291111--332421 0362 Total 1436940 Note: This table data for the author according to the Hong Kong and Shenzhen Three exchanges to provide data collation.　　(4) The mainland A-share price is not open the grade, is a serious egalitarianism and the typical pot. Judging from the share price distribution, Hong Kong's main board share price is HK $271.8, the lowest share price is Hankey holding HK $0.027, the highest share price and the lowest share price is 10,000 times; St Business 2.9 Yuan, the highest share price and the lowest share price is less than 35 times times the difference. This is the mainland's stock market in the distribution of the serious egalitarianism and the typical pot! This also is called kettle, everybody is same, similar!　　The price is not open, but also is the mainland stock market easy ups and downs, the collapse of inflation, the root cause of the fall.　　(5) The price of a A-shares in mainland China is seriously high, especially the low price stocks "showered". Shares in stocks below 1 yuan, there are 362 boards in Hong Kong, while the mainland shares do not exist in this category; the shares between the 1--3 Yuan, the Hong Kong motherboard has 242, the mainland only has 3, the stock price is between 3--5 yuan, the Hong Kong motherboard has 111, the mainland motherboard has only 29.　　In other words, the share price below 5 yuan of stocks, Hong Kong motherboard accounted for 76%, the mainland A shares accounted for only 2%. When the Hong Kong motherboard 76% of the stock price is less than 5 yuan, on the contrary, the mainland a 98% of the stock price is more than 5 yuan, the garbage stock "showered", low price stocks, this is the mainland stock market excessive speculation, the most prominent bubble serious performance! Dongdengwen (professor), Wuhan University of Science and Technology