“Don't wear green shoes, get started on the first day” is becoming more and more popular among A+H listed companies, and is gradually becoming a trend. The reporter's preliminary statistics revealed that since this year, many companies, including Binhua Co., Ltd., Puyuan Precision, Wall Nuclear Materials, Guoen Technology, Zhaowei Electromechanical, MeiG Intelligence, Guanghe Technology, and National Technology, chose not to establish a green shoe mechanism when issuing H, and were included in the Hong Kong Stock Exchange on the first day. In contrast, only one company, Jihong Co., Ltd., chose this mechanism last year. The reason behind this phenomenon is that A-share companies are paying more and more attention to south-bound capital when listing in Hong Kong. As the share of Southbound Capital in the total trading volume of Hong Kong stocks rose markedly, Southbound Capital's marginal pricing power over Hong Kong stocks increased markedly. Many interviewees believe that introducing the green shoe mechanism or choosing to be included in the Hong Kong Stock Connect on the first day is actually a trade-off between the circulation market, price stability requirements, investor structure, and subsequent trading activity.

“Don't wear green shoes, get started on the first day” is becoming more and more popular among A+H listed companies, and is gradually becoming a trend. The reporter's preliminary statistics revealed that since this year, many companies, including Binhua Co., Ltd., Puyuan Precision, Wall Nuclear Materials, Guoen Technology, Zhaowei Electromechanical, MeiG Intelligence, Guanghe Technology, and National Technology, chose not to establish a green shoe mechanism when issuing H, and were included in the Hong Kong Stock Exchange on the first day. In contrast, only one company, Jihong Co., Ltd., chose this mechanism last year. The reason behind this phenomenon is that A-share companies are paying more and more attention to south-bound capital when listing in Hong Kong. As the share of Southbound Capital in the total trading volume of Hong Kong stocks rose markedly, Southbound Capital's marginal pricing power over Hong Kong stocks increased markedly. Many interviewees believe that introducing the green shoe mechanism or choosing to be included in the Hong Kong Stock Connect on the first day is actually a trade-off between the circulation market, price stability requirements, investor structure, and subsequent trading activity.