Ant H Shares: Some Securities Companies Buy New Interest On Singles, And International Institutional Investors Switch To Other Chinese Stocks

In view of the sudden increase of Hong Kong dollar liquidity and the pressure of capital outflow caused by the suspension of H-share listing of ant group, it is rumored that the HKMA may issue exchange fund bills to absorb additional Hong Kong dollar liquidity, so as to ensure the stable operation of Hong Kong dollar liquidity and exchange rate.

"I thought I could make a lot of money, but now I didn't expect to lose the financing interest." A reporter from h-ant group said that it would take a new leverage to domestic investors.

On the evening of November 3, after ant group announced the postponement of H-share listing, he quickly called Internet securities companies to learn about the refund.

An Internet brokerage business director admitted to the reporter that there were many leveraged investors consulting about refund on the evening of the 3rd, mainly involving when the funds will arrive and how to deal with the new interest of leverage financing.

On the morning of November 4, ant group announced on the Hong Kong stock exchange that the initial public offering of H shares and the listing of H shares would not be carried out in accordance with the timetable set out in the prospectus. The application funds for the Hong Kong public offering, together with 1% brokerage commission, 0.0027% SFC transaction levy and 0.005% stock exchange transaction fee, will be returned in two batches without interest.

"Under normal circumstances, the financing interest of Hong Kong stock leverage is not refundable." A Hong Kong broker told reporters. In order to appease investors such as investors in new securities such as Changtu securities and H & T securities, they are exempt from the handling fee of securities financing.

It is worth noting that most of the international investment institutions waiting for refunds are also relatively calm.

"On the evening of March 3, we quickly held an emergency meeting to discuss the follow-up operation of the winning fund. All members of the investment committee believed that the fund did not need to return to the European and American markets, but directly sought other Chinese stock allocation in Hong Kong." A large U.S. asset management agency Asia Pacific Trading head told reporters. The reason is that the severe epidemic situation in Europe and the United States has made the Investment Committee more inclined to stay in Hong Kong, increase China's asset allocation, and obtain relatively stable and safe investment return.

However, whether the capital outflow caused by the suspension of ant group's H-share listing will impact the liquidity and exchange rate stability of the Hong Kong dollar remains a matter of great concern to the Hong Kong Monetary Authority.

The reporter has learned from many sources that in view of the sudden increase of Hong Kong dollar liquidity and the pressure of capital outflow caused by the suspension of H-share listing of ant group, the market hearsay that the Hong Kong Monetary Authority may issue exchange fund bills to absorb additional Hong Kong dollar liquidity, so as to ensure the smooth operation of Hong Kong dollar liquidity and exchange rate.

Interest exemption calms investor sentiment

The business director of the above-mentioned internet securities companies disclosed to reporters that after receiving many investors' consultation on how to deal with the new financing interest of ant group's H-share leverage, they quickly decided to exempt the relevant interest and handling charges.

"In particular, the interest loss of investors with 15 times leverage is relatively high, and the related interest loss of some investors with a high number of winning shares (as much as several million Hong Kong dollars) reaches about HK $18000." He told reporters.

The reporter learned that the H-share listing of ant group won the lot of 1.55 million investors and froze more than 1.3 trillion Hong Kong dollars. If these funds are obtained through leverage financing, according to the 2.98% annual leverage financing interest of Huili securities, the interest loss will exceed 100 million Hong Kong dollars.

The head of Internet securities business told reporters that at present, if they exempt the interest and handling fees related to leveraged new investors, the platform will bear millions of Hong Kong dollars of capital expenditure by itself - but considering the customer experience and customer stickiness, this investment is still "worth it".

At present, he is rather troubled by the fact that some winning bidders have already sold ant group's H shares at a premium rate of 50% in the dark market trading market, and now the Buyers ask to cancel the relevant transactions and refund the transaction money. Therefore, the platform needs to find a proper solution through negotiation between the two sides of the transaction.

During this period, the seller is not willing to return the profit He told reporters. Fortunately, the delayed listing of ant group's H shares made it impossible for the sellers to get new shares, and the shares could not be delivered on time. Therefore, the sellers were also worried about the legal risks of delivery default, and finally agreed to cancel the transaction and refund the transaction money.

Another person in charge of a large domestic Internet securities firm told reporters that on the 4th, they had received part of the subscription money of ant group's IPO new shares, which were returned to the investor's account according to the relevant operation procedures.

"On the whole, the overwhelming majority of investors are in a stable mood, and only a few investors think ant group should pay investors the interest on the funds during the period of trading new shares because of its own reasons." He told reporters. To this end, they have properly solved the relevant problems by giving 30 day Hong Kong Stock Trading Commission credit card.

Global institutional investors rush to replace Chinese stocks

In contrast, the refund flow of ant group's international placement part is more closely watched by the financial market.

"More than 100 billion Hong Kong dollar institutional investment funds have been unfrozen in these two days. If all these funds are withdrawn from Hong Kong and returned to the European and American markets, it may have a certain impact on the exchange rate and liquidity of the Hong Kong dollar." Hedge fund BMO capital markets strategy analyst Aaron Kohli told reporters. As a result, the US dollar / Hong Kong dollar exchange rate hit an intraday low of 7.7534 on November 4. As of 16:00 on the 4th, the US dollar / Hong Kong dollar exchange rate hovered around 7.7514.

A spokesman for the Hong Kong Monetary Authority said that as an international financial center, capital flows in and out of Hong Kong are normal. Over the years, the HKMA has established a strong buffer and earthquake resistance capability in the financial and banking system. The banking system is very stable and has sufficient liquidity. The authorities are confident and able to maintain the stability of Hong Kong's monetary and financial system.

The reporter learned from many sources that most of the international investment institutions of ant group H shares did not intend to return the relevant refund funds to the European and American markets. The reason is that the new capital of ant group was originally within the limit of its Chinese asset portfolio. Now ant group's H shares cannot be allocated. They only need to allocate other Chinese stocks instead.

An American Wall Street hedge fund manager disclosed that after learning about the postponement of ant group's H-share listing, they also discussed how to use the refund fund. At that time, all members of the investment committee reached two consensus: one is not to reduce China's asset allocation quota due to the delay of ant group's H-share listing; the other is to transfer the relevant refund funds to the new economy that meets ESG conditions China's high-quality stocks in the field of new consumption and high-tech.

"If ant group applies for H-share listing again, we will still participate in new subscription, because it is an important investment choice for new economy and new consumption sectors in China's asset allocation portfolio." He told reporters. However, in view of the new changes in China's financial technology regulatory environment, their valuation and allocation ratio of ant group may be adjusted accordingly.

A foreign exchange trader of a Hong Kong bank disclosed to reporters that on November 4, there was no sign of a large amount of institutional investors' funds (refund of H shares of ant group) leaving Hong Kong. At present, the exchange rate of Hong Kong dollar against the US dollar is separated from the guaranteed exchange rate of 7.75 strong parties. The main reason is that some speculative capital make use of the problem to make profits by short-term short selling of Hong Kong dollar.

As a matter of fact, Hong Kong is still the first place to see the global economic recovery due to the severe situation of China and Europe He stressed.