[Fantasy Ghosts]A-shares pry into the Hong Kong MPF vault-Eleventh Shao｜ Apple Daily

Hong Kong has a small treasury and is again favored by the mainland. When the economy is down, Hong Kong people’s MPF will soon usher in a new way of playing: investing in A shares.

In November last year, on the occasion of the 20th anniversary of the establishment of the MPF, Treasury Director Xu Zhengyu announced that the Shanghai and Shenzhen Stock Exchange had been included in the list of approved stock exchanges by the MPFA. At the end of February this year, media reported that the Hong Kong MPFA was working with mainland regulators. Negotiated, hoping to add the Shanghai and Shenzhen stock exchanges to the MPF investment portfolio.

The official will of course tell you that having more choices is a good thing for the public, but thinking about it from another angle, this is undoubtedly equivalent to opening the gap, and there is a chance to withdraw money from the Hong Kong stock market in disguise to trust the mainland stock market.

In fact, the valuation of A-shares has always been crazy. Just look at the historical P/E ratios of the top ten heavyweights in the Shanghai and Shenzhen 300, Kweichow Moutai 59 times, Wuliangye 56 times, Hengrui Medicine 93 times, and China CDC 168 times. Hong Kong’s Tencent (700) is 46 times and AIA (1299) is 27 times more terrifying, which means that Hong Kong people’s hard-earned money is sent to A shares to buy expensive goods.

According to data from the MPFA, as of September 2020, the size of the MPF has reached 1.02 trillion yuan, while the “stock funds” and “mixed assets funds” that may potentially flow into the A-share market each have about 352.9 billion yuan. And 329.3 billion yuan, no wonder the mainland covets, please enter the urn.

Columnist Wen Tao once questioned: “Xu Zhengyu mentioned that the MPF scheme currently “has a certain degree” invested in A shares. As of September 30 this year, it accounts for 1.12% of the total assets of the MPF, which is about 11 billion Hong Kong dollars. In fact. The proportion of about 1% has not changed much in the past five years. In the past, only 1% invested in A shares was considered as low demand, and there was no need to include mainland exchanges in the list. Now this 1 %, but it is regarded as in demand, what are the criteria?”

What is more noteworthy is that the Mainland has been implementing foreign exchange controls. Once the MPF can buy A shares, the MPFA cannot ignore the difficulty of redemption, because the authorities also responded in September 2017: It’s a necessary condition.” Under the current objective environment, even with the expansion of Shanghai Stock Connect and Shenzhen Stock Connect, and the inclusion of large international indexes in A-shares, China still has strict foreign exchange controls. As a Hong Kong citizen, I really have the confidence to take hard work. The MPF contributions received from the contributions are voluntarily sent, do you risk that you will never look back?

Eleventh

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