The Hong Kong Stock Exchange plans to implement a new round of reforms to attract more companies to list in Hong Kong

[Global Network Finance Comprehensive Report] Recently, the Hong Kong Stock Exchange announced plans for a new round of significant reforms to its listing rules to attract more companies to list in Hong Kong. The main measures include: significantly lowering the financial threshold for "weighted voting rights," increasing the ratio of different rights to 20:1, reducing the financial threshold for secondary listings, expanding the scope of confidential IPO submissions to all applicants, and strengthening the return mechanism. Cinda International recently stated that technically, the Hang Seng Index has formed a head and shoulders top since January, and broke below the neckline of 26,300 points in early March. Recently, it tested the 25,000 points level, where some support appeared. The short-term rebound resistance is around the 50-day moving average at approximately 26,500 points; in the later period, Hong Kong stocks will enter the earnings season, and corporate performance and outlook will influence the overall market performance. Minsheng Bank International released a report stating that since the lowest point on January 22, 2024, the Hong Kong stock bull market has lasted more than 25 months. Looking back at this round of market, the current market has shifted from a high-volatility phase of impulsive rises and falls to a steady rising phase. After the adjustment since the end of January, the Hang Seng Index has once again retreated to the annual average line and is showing signs of stabilization. The previous two returns to the annual line were accompanied by new upward trends in the market, and it is currently building momentum. Minyin International also pointed out that from an industry perspective, the current valuations have significantly recovered compared to the initial stage of the market, particularly in industries including materials, energy, finance, information technology, industrials, and conglomerates. Industries that have seen passive declines in valuations due to significant performance improvements include healthcare and discretionary consumption. Industries with valuations significantly above the 10-year median include materials, industrials, conglomerates, and real estate construction, while those with significantly lower valuations include information technology, healthcare, discretionary consumption, and essential consumption. In addition, Hong Kong stocks have a relative undervaluation advantage. Firstly, there is still a gap from the historical average level of bull markets; secondly, compared to major global stock markets, Hong Kong stocks remain at low valuation levels; thirdly, A-shares still have a premium over H-shares, Hong Kong stocks have a dividend yield advantage, and southbound capital has gradually recovered; fourthly, some industries are still in undervalued positions