(Yicai Global) Dec. 5 -- Today marks the first anniversary of the opening of the Shenzhen-Hong Kong Stock Connect program. It has made considerable impact on the number and value of shares traded through the Connect, with the total trading volume to date reaching CNY1.29 trillion (USD194.9 billion). One year on, the Connect also sheds more light on domestic and international investor behaviors.
There has been a continuous uptick in activity on the stock connect market, a source at the Shenzhen Stock Exchange said. As of last month, the daily trading volume of Shenzhen-traded shares has increased by 379 percent to CNY7.38 billion after the introduction of the program, and the value of transactions involving the Hong Kong stocks grew by 745 percent from CNY454 million to CNY3.84 billion, the 21st Century Business Herald reported today
Of the total trading volume, CNY882.14 billion was generated by purchases of Shenzhen-listed shares, and CNY412.64 billion by Hong Kong stocks. Midea Group Co. [SHE:000333], a leading Chinese home appliance manufacturer based in the southern Guangdong province, has remained the ‘favorite’ among foreign investors.
Overseas investors spent a total of CNY23.15 billion on Midea Group’s shares, outranking all other companies. It is followed by Hangzhou Hikvision Digital Technology Co. [SHE:002415] and Gree Electric Appliances, Inc. [SHE:000651], another major Chinese white goods producer headquartered in Guangdong, at second and third places, raking in CNY22.31 billion and CNY15.94 billion respectively.
Most foreign capital on the stock connect market went to industry leaders with relatively low valuations and growth stocks boasting core technology advantages, a broker noted. Foreign investors also allocated heavily toward Chinese liquor and financial stocks.Keywords: MSCI, Midea Group, Hangzhou Hikvision Digital Technology, Gree Electric Appliances