At the beginning of April, my team and I went to Hong Kong to open bank accounts. I personally tested it and found that we could open accounts with more than 8 brokers. Including various account opening gifts and benefits, the overall returns reached over 4000 HKD. Therefore, starting today, I will officially begin updating the series of articles on IPO subscriptions in the Hong Kong stock market and broker account opening bonuses that I promised everyone!
Since IPO subscriptions in the Hong Kong stock market and broker account openings are relatively unfamiliar topics for most friends, I will start from the very basics in the first issue, including the participation methods for IPO subscriptions, the principles of broker account opening gifts, and basic concepts regarding returns. Therefore, novice beginners need not panic; I will teach you step by step how to achieve substantial returns!
🔸Broker Account Opening Gifts
First, let me introduce what broker account opening gifts are. Essentially, they are a way for brokers, as profit-oriented financial institutions, to attract users to open accounts and conduct stock trading, similar in nature to promotional activities in shopping malls.
Taking the April event in Washington as an example:
This is easy to understand, but the key point to mention here is that since the broker's account opening gifts are so generous, what are the requirements? First of all, a certain amount of capital is definitely needed to join because, for brokers, they need to find precise stock trading users to allocate their budgets. Therefore, the common threshold requirements are to meet a certain amount of average daily assets (different brokers have different requirements, and I will introduce them in detail in the following articles) 🚨 It should also be emphasized that daily average assets do not require you to conduct any stock trading operations; your principal will not be affected in any way. Think clearly about our purpose!
🔸IPO Subscription in Hong Kong
This is also a key point of popular science. I believe many friends have heard about IPO subscriptions in the Hong Kong stock market, but it might be a strange field. In fact, it operates on the same principle as IPO subscriptions in the A-shares at home or the exchanges we are familiar with in Web3.
As the name suggests, every time the Hong Kong Stock Exchange has a new stock listing approved for compliance, users can participate in the subscription lottery. Based on whether you are optimistic about the future of the new stock, you can choose whether to invest subscription funds and then wait for the lottery.
However, the mechanism for IPO subscriptions in the Hong Kong stock market is relatively more complex. I will first introduce the core mechanism. Initial understanding may be somewhat difficult, and it involves the concept of financing. No problem, I will establish a communication group later, and you can directly raise any questions there!
⚡ Core Mechanism Introduction:
1. Red Shoe Mechanism
In the Hong Kong stock market, the allocation of new stocks prioritizes ensuring that retail investors get 'one account, one subscription,' meaning that among investors applying for one lot, the winning rate is the highest (usually 10%-20%), and then it decreases according to the number of subscriptions. For example, a certain new stock may have a winning rate of 60% for one lot, while the total winning rate for applying for 400 lots may only be 72%.
2. Division of Group A and Group B
The public offering portion is divided into Group A (≤5 million HKD) and Group B (>5 million HKD) based on the subscription amount. Group A is mainly composed of small and medium investors, while Group B mostly consists of high-net-worth or institutional investors.
The winning rate for Group A is usually higher, but Group B can obtain more shares through large subscriptions.
3. Optimization of the FINI system
In 2023, the Hong Kong Stock Exchange launched the FINI system to shorten the settlement cycle for new stocks and reduce the cost of fund freezing. After the reform, the interest cost of financing for IPO subscriptions has significantly decreased, but at the same time, it has intensified leverage competition among brokers, with some financing multiples reaching up to 100 times.
Regarding the yield, it depends on the market situation and the fundamentals of the new stocks. Since the end of last year, the market for IPO subscriptions in the Hong Kong stock market has been generally very good. Here, I have specifically organized a table of new stock yields that performed well since last year. Some stocks are not included because they were not popular at the time and had very low attention.
Among them, the most remarkable performance was from the last new stock - 09606 Ying En Biotechnology, with an astonishing yield: if you participated in Group A and subscribed for 1 lot, the winning rate was 80%. Subscribing for 10 lots almost guarantees a win. The invested principal of 10,000 HKD could yield a maximum profit of 12,000 HKD on the first day, with only 100 HKD in subscription fees, resulting in an astonishing yield of 120%. Therefore, in the current good market conditions, it is still important to join early to enjoy market dividends. Additionally, several good domestic companies have already submitted applications, such as 'Hu Shang Auntie,' yes, the one you often drink!
🔸Q&A Session
I have specially added a Q&A session to answer some common and most concerning questions that everyone has, and I also want to chat with everyone about the original intention of creating this series!
1. Is there really a yield of 5000+? Is it exaggerated?
Yes, and it is a conservative estimate. I will publicly disclose all the account opening gifts from various brokers in the upcoming articles. The upper limit is not just that, but it may require more capital turnover. According to our team's personal test, a single account only needs around 60,000 HKD to get at least 5000+, maximizing the use of funds.
2. I heard that IPO subscriptions in the Hong Kong stock market are very difficult. Is the process really as simple as you say?
First of all, the information conveyed by various self-media and other information sources is incorrect. Our team has personally tested that the entire process is not that complicated, including opening bank accounts, broker account openings, etc., which are all public and legal channels. Some people deliberately make it sound very difficult just to profit from your information gap. As long as you ensure your funds are legal and compliant, and not just random funds with other purposes, there should be no problem. I will also help you answer your confusions for free!
3. Why freely disclose information gaps? What is your purpose?
This question is very direct and happens to be the original intention behind me wanting to create this series of articles.
🚨 I must seriously declare that I will not charge you in any form!!!
First of all, as a Twitter blogger with a certain number of followers, I want to publicly disclose this information gap to prevent friends from falling into traps. On one hand, it is to save costs, as this is just an information gap, and all application channels are public. On the other hand, I hope everyone can make money, which is a great reflection of my own self-worth.
Secondly, there will still be issues related to the invitation mechanism in the future. This part can only be returned to everyone if you go through my channels. I hope everyone understands that the so-called invitation income is actually very minimal and not the key point I want! For me, this is much less than the income from easy tasks! If I can establish a high-value community, I see it as more important to exchange ideas related to investment in the future.
In the end, it's about the results, not the intentions. I will no longer pay attention to all the bad rhythms in the future. I will fully output the content I know to everyone and do my best to help everyone solve problems. You can V + taojinxiaozhan88
✍️ Creating articles is not easy; the likes, shares, and saves from my friends are the motivation I want the most!
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