The Shenzhen-HK Stock Connect will be launched on 5 December 2016 (Monday), at a time when Mainland China investors continue to increase their investments Southbound. So far, the Shanghai-HK Stock Connect have contributed positive net buy to the Hong Kong stock market in the past 12 months. Including other flows from qualified domestic institutional investors (QDII) and unofficial vehicles, UBS estimated Mainland China investors accounted for about 12% of Hong Kong’s stock market turnover year-to-date*. Below are three ways companies can take advantage of this redeployment of Mainland wealth:
1. Be found on Mainland financial portals
The Mainland China market is more dominated by retail investors who rely on online financial portals to retrieve stock information. Websites such as Hexun, Sina, QQ, and 163 all have a designated “HK Stock” pages filled with relevant Hong Kong company news (on both web and social media versions), particularly Stock Connect eligible companies’ news. Mainland investors also rely on expert tips found on these portals when making investment decisions. Therefore, a first step to succeeding in the Stock Connect is to ensure being spotted and endorsed on these Chinese financial channels.
2. Look good on mobile (especially WeChat)
There are currently more than 800 million monthly active users of WeChat and more than half a billion Chinese own smartphones^. Having a corporate website that is responsively designed (i.e. auto-adjust for different screen sizes) is already a given. With a distinctive portrait-only view mode on WeChat, many companies have been creating H5 microsites that are optimized for websites accessed within WeChat. Companies can leverage H5 microsites to introduce their company story and/or earnings announcements to Mainland investors in a more simple but compelling way.
3. Upkeep regularly and consistently
A content strategy can never rely on a one-hit wonder; building and maintaining exposure for a new audience requires constant upkeep. After getting the language, the format, and the channels right, companies need to make sure these content are pushed out regularly. Having an editorial calendar helps to ensure enough preparation time for content creation, translation, production, and delivery.
*Source: HKEX, UBS; ^Source: QuestMobile, TimeBack to home