Why don’t foreign investors buy Hong Kong stocks?

What kind of market is Hong Kong stock market now? In the Hong Kong stock market, retail investors are nothing but Tang Monk Meat, allowing them to be teased by big bankers. Retail investors should not speculate in Hong Kong stocks.

The reason why I say this is because there are too many disadvantages to retail investors in Hong Kong stocks:

1. There is a strong sense of gambling

In the Hong Kong stock market, the main It is dominated by foreign-funded institutions. These institutions are all bad and are luring retail investors into gambling. They are market makers, and TV or financial channels are also selling advertising space. Inducing retail investors to buy futures, CBBCs, warrants and the like. These things are all based on stocks controlled by Hong Kong's major bookmakers. The buyer will lose time value at least, and lose net worth at worst. Among the daily turnover, 20% is actually gambling transactions. It's really breathtaking.

Of course, not all stocks they design derivatives to sell, the stocks they sell derivatives must be stocks whose prices are controlled by them. When retail investors buy up, they unite to push the price down; when retail investors buy down, they unite to push the price up. In this way, over time, retail investors' money will naturally roll into their accounts.

2. With few participants and few transactions, the stock price can easily be manipulated.

The pricing power of Hong Kong stocks, the pricing power of most stocks, belongs to foreign investment banks and the like. In my opinion, every stock has a market maker, and the market makers in Hong Kong stocks are more ruthless than those in mainland China. Junk stocks can be speculated to the sky, and traditional value stocks can be driven to the floor. The prices are so confusing that people don’t know what to do. Every year, a bunch of Hong Kong stocks suddenly crash. Why do they crash? It's nothing more than fraud or something like that. Stocks are too easy to be manipulated. Whether the stock will rise or not is entirely up to the banker. You can go to the sky when it rises, and you can go to the ground when it falls. In Hong Kong, it is easy to see some stocks with 3-5 times PE all year round, and you can also see stocks with 0.2 times PB, and some stocks with 1,000 times PE and dozens of times PB. In short, they all think it is "reasonable" , after reading those "guidance prices", some people will say, "With a valuation of 2 times PE, do you think it will go bankrupt in two years?" In fact, they are just using the media to manipulate the stock price. This phenomenon is very common in Hong Kong, and is less obvious in U.S. stocks due to the large number of participants. But there are too few participants in Hong Kong stocks, and this phenomenon is too obvious. Therefore, more than 10 years ago, I lamented, why did Jiangxi Copper, which was worth 30 yuan, fall to 3.5 yuan? Then it rose from 3.5 yuan to nearly 30 yuan? These are basically manipulations. And it is controlled by a very small number of people.

3. There is a phenomenon of indiscriminate issuance of Hong Kong stocks

Hong Kong stocks are registered, and many junk companies issue them at high prices. It used to be better, but in the past ten years, it has become more and more spammy. Any loss-making companies are listed on the market, negative assets are also listed on the market, and different voting rights are also listed on the market. In short, more and more companies that are cheating money and even have difficulty making profits are going public. In the past, listed companies quietly defrauded shareholders of their money, but now listed companies are openly robbing money. There are about 3,000 Hong Kong stocks. Every year, stocks propose "privatization and delisting", and then a large number of new listings are listed every year. Those who are privatized and delisted must be delisted after the stock price falls very badly. For example, if the stock price is issued for 10 yuan, it will rise to 100 yuan. yuan, and then fell to 1 yuan. After privatization and delisting, it may be re-issued and listed in the future.

There are also many companies in the Hong Kong stock market that like to spin off and go public. If the same major shareholder spins off one of its businesses, it will become a new listed company and re-circulate the money for use. Therefore, we can see that there are 3,000 Hong Kong stocks, many of which are related. After they issue a new listed company, they will continue to issue a new one after N years. The cycle continues like this. After a new company is issued, the old one will The listed company will become more and more shabby, fewer and fewer people will buy and sell, the price will drop again and again, and it will become a shell.

In addition to the split, it is constantly issuing new shares to raise funds, private placements and the like. In short, there are some consortiums that constantly issue new shares to raise funds. Only financing, no dividends.

4. Hong Kong’s transaction fees are expensive

Hong Kong has a two-way stamp duty of 0.13%, and the commission is also very high. You may earn income even from bank transfers in and out, and dividends are also charged. Dividends are also charged, and it takes about 45 days after ex-rights to receive cash. Hong Kong Stock Connect even deducts 20%-28% tax, which is outrageous.

In short, transaction fees in Hong Kong are very expensive, and the government and banks deduct the profits of many companies every day. Therefore, these fees will drag down the actual returns of stocks.

5. The management of Hong Kong stocks

The management of Hong Kong stocks is getting worse and worse. For example, the Hang Seng Index is designed to include some bubble stocks and push up the PE , and then I thought, the reason why these managers did this, I guess, is because they have interests. If they are included in the index, there will be corresponding funds to take over. Before that, some major market makers pushed up the stock price. At this time, After being included in the index, the index fund takes over, and they sell and retreat, perfect. Sometimes I feel that they are just basically messing around and don't care about profits at all. For PE and the like, they just put whatever is hotly speculated in the market into the index. Therefore, Hong Kong’s index growth in the past ten years has been far lower than the growth many years ago.

6. The information disclosure required by Hong Kong stocks is beneficial to listed companies but detrimental to investors.

Hong Kong stocks are not required to publish quarterly reports, only semi-annual reports and annual reports. This is very depressing. A-shares and US stocks release information on a quarterly basis, and US stocks release performance and dividends on a quarterly basis. Looking back at Hong Kong stocks, it seems that many trading rules are beneficial to listed companies and detrimental to investors, so people feel that this is worse than A-shares. Of course, in addition to this, there are other phenomena that make people feel that it is very unfair to investors.

7. Who is the opponent?

Whenever I think about it, as a retail investor participating in Hong Kong stocks, your opponent is not other retail investors, but those large institutions that have the right to speak out. They not only have financial strength, but are also very shameless and do not rely on the stock market. increase to make money. They just take other people's money and use their capital and media advantages to control stock prices. Whether you believe it or not, there are definitely retail investors who have been harvested by them. What they are shameless about is that they can control some stocks to keep them in a bubble state for a few years without exploding; they can also control some stocks to sell for less than 5 times the price. PE maintenance lasts for several years. Letting go for a long time will make a normal person lose their rationality. For example, a stock with a PE of 5 times can be lowered to a PE of 4 times a year later, then to a PE of 3 times, and then to a PE of 2 times... until all retail investors are exhausted and all surrender, the stock price will rise. rise. In any case, they are not waiting for the money to be used. As for how many months or years it will take to wear out retail investors, it is unknown. Therefore, due to their existence, there will be many zombie stocks in the Hong Kong stock market. These stocks are no one cares about, no one mentions, and no one speculates on them. They are all remote-controlled dice controlled by the dealers.

When I think about it, when I participate in Hong Kong stocks, my opponents are these bookmakers, and my chances of winning are really low. I once held a Hong Kong stock for 5 years, and finally left the market with a huge loss. Starting from the 4th year of my holding, the company's peers had begun to rise sharply, but the stock did not rise but fell. Later, after After constant deliberation, the guess is that there are many retail investors in this company, and the market makers have no intention of raising the price. Later, just after I sold it, it more than doubled in 3 months, and then doubled again in the next few months.

Later, I held CNOOC 883 and encountered the same situation. Other oil stocks were rising, but it was not rising. In the final analysis, it is still the same sentence, that is, everyone thinks that CNOOC is higher than PetroChina has strong profitability, and retail investors prefer to buy CNOOC instead of PetroChina. Finally, there are too many retail investors, and market makers also believe that CNOOC can easily control PetroChina, so oil stocks tend to issue derivatives of CNOOC instead of PetroChina. Retail investors subscribed to these CNOOC derivatives. 99.95% of retail investors believed that the stock price would rise. The market makers just controlled the stock price and did not let it rise. In this way, all retail investors believed that CNOOC was underestimated and felt that it would rise. Even buying its derivatives to see the price rise, that's it, the market makers controlled the price tightly, but it just didn't rise. In the end, those who financed the purchase of CNOOC, and those who used derivatives to see the price rise of CNOOC, died over and over again. CNOOC still did not rise. These large market makers won again and retail investors lost again.

Therefore, I think it is too difficult to make profits in Hong Kong stocks. It is better not to speculate in Hong Kong stocks. No matter how cheap or expensive these companies look, there are many technical graphics. Perfect, no one should buy Hong Kong stocks. These opponents are too cunning and we have no way to fight against them. From the perspective of profit mechanism, institutions and retail investors in Hong Kong stocks are not on equal terms.

......That’s all. Hong Kong stocks are really not speculated by people.

In the future, A-shares may develop like Hong Kong stocks, that is, high-quality, profitable companies are listed, and the money is collected. Their tasks are completed, and the remaining listed companies are a lot of junk companies. Either the original listed company loses money and gives up profits to the new company, or the new company that loses money continues to lose money... In short, there is only so much money. If some companies don't go bankrupt, how can other companies live well? ?

Therefore, it is conceivable that in the future, A-shares will be what Hong Kong stocks are now. Marginal stocks will be manipulated, and leading companies may not rise, because domestic companies will lose money if they do not grow up. If they grow up, they will lose money. Will be killed. One batch at a time, another batch at a time, and the cycle continues. There will be no monopoly leader like Coca-Cola. There will be a ceiling for the profits of leading companies, and it will be difficult for other companies to make profits, and in the end they will continue to live and die. The only ones who profit are the issuers, securities companies, and the government. It is difficult for retail investors to make profits.

Look at the following monster stocks in Hong Kong stocks. Why did they rise 10 times and then fall 90%, and then rise several times? After frying one shell, fry another shell? After speculating on one theme, do you switch to another one? Is there chicken feathers everywhere after frying?