Hong Kong industry: shorting mechanism will reduce AH share price difference

Li Yu Ah stock Premium Index recently fell below 110 points, a 1.5 to a new low, yesterday closed 111.72 points. Hong Kong Hui Li Securities director Huang in the "First financial daily" interview, said that the recent AH Premium index shock fell, in addition to the impact of the mainland shorting mechanism, as well as overseas funds on the appreciation of the renminbi expectations, so as to enter Hong Kong to fry high stocks.　　Puyong, managing director of the Asian Research division at UBS, said that it was likely that the price of AH shares would be closer in the long run. In 2007, the AH-share premium index, which hit a record high of 197 per cent, fell to a 105.73-point historical low in October 2008. And then rebounded to 189.74 points in March 2008, and then continued to shake lower.　　April 12 this year fell to 108.01 points, set a new low since October 2008.　　On January 8 this year, the State Council agreed in principle to launch stock index futures and margin trading, and Chan, director of Credit Suisse China Research, pointed out that the new investment vehicles could further narrow the spreads on AH shares and reduce volatility in the mainland stock market. Margin and stock index futures in the mainland market, so that the mainland market really formed a short mechanism, the stock market officially into the 2.0 era, whether the market up or down, investors can make a profit.　　However, in Hong Kong, stock index futures and financing (Hong Kong people called "margin", from the English "Margin" homophonic) margin (Hong Kong is called "Short selling") has long been a common tool for investors. Ba Fang Asset Investment director Cheiliu in an interview with this reporter, said, not optimistic about a-share market, its "China Dragon Power" fund sold ishares A50 China Fund (02823.HK), there are three main reasons: first, the non-tradable is still coming, will continue to cause a certain negative impact on the market　　The second is the introduction of stock index futures and short selling mechanism, which is likely to cause certain lethality to the market. Third, compared to Hong Kong stocks, a shares in the 2009-year rise, the valuation has been relatively high. A private equity market ministry Personage told this reporter that, many potential customers see their investment results, hope that the company to invest in the A-share market, but the company will try its best to persuade customers to put money into the Hong Kong stock market, because they think the Hong Kong stocks market high-quality listed companies more, and low valuation, the choice of more room , which is also responsible for the customer.