Are Hong Kong Investors Interested in Shenzhen-Hong Kong Stock Connect<br/>—An Investor Behavior Analysis Based on Shanghai-Hong Kong Stock Connect

Abstract

In November 2014, Shenzhen-Hong Kong Stock Connect was opened. It has been more than one year until now. Although its transaction is not as expected, the opening of Shenzhen-Hong Kong Stock Connect is a must. Hong Kong investors investing in the A-share market in the Chinese mainland by Shenzhen-Hong Kong Stock Connect are mainly small-and medium-sized institutional investors who have not obtained QFII quota. Through the analysis of their investment behaviors, we have found that the preference of Hong Kong investors is single and concentrated. They extremely prefer financial blue-chip AH share. They will try to invest in growth stock in the unfamiliar A-share market, mainly mid cap stock with relatively high valuation, relatively low dividend, a certain risk and relatively good growth ability. They prefer information technology shares. The opening of Shenzhen-Hong Kong Stock Connect will bring opportunities different from those of Shenzhen-Hong Kong Stock Connect.