Since the opening of Shanghai and Hong Kong in November 17th, the stock market in Shanghai and Hong Kong has been rather dull, causing many investors to feel disappointed. However, in a deeper sense, the significance of Shanghai and Hong Kong links is not only to uplift the stock market, but to promote a series of financial and SOE reforms in the mainland, as well as to help Hongkong consolidate and develop its offshore centre.

Shanghai and Hong Kong through 10 trading days, turnover and volume occupied worse and worse, and Hong Kong stock exchange was a rare deal. The reason for this colder situation is that Hong Kong stocks have been fired up, and the Hong Kong stock market is still relatively unfamiliar. Therefore, mainland institutional investors did not invest heavily in Hong Kong stocks but held a wait-and-see attitude. The two reason is that the strength of China's economic data is one of the decisive factors for foreign capital flowing into the A share market.

However, the fermentation of policy dividends needs process and time accumulation, and there is no need to overlook the short-term performance of Shanghai and Hong Kong. Shanghai and Hong Kong have great significance for mainland China and Hongkong.

There are at least three deep implications for Shanghai and Hong Kong, among which the first is to further deepen the reform of the A share market. Shanghai and Hong Kong can enable international investors to participate in the A share market transactions, which will not only stimulate the vitality of the A share market, improve the structure of investors in the A share market, but more importantly, the A share market can also promote the mature, healthy and steady development of the market and reach the international advanced level by introducing higher requirements and guidelines for corporate governance and supervision level in the international market.

Second, Shanghai and Hong Kong can promote central enterprises and state-owned enterprises. reform 。 There are still many chronic diseases in the A share market. When the US market often has actions against Chinese listed companies, it is necessary for the central enterprises and state-owned enterprises to carry out market-oriented reforms and large scale fund-raising operations accompanied by market-oriented reforms. We must seek better funding locations. After the opening of Hongkong and Hong Kong, Hongkong has become an inevitable choice. It will enable Hongkong to become the only springboard for international investors to invest directly in A shares. It will help attract more international funds that have already coveted China's rapid development and bring capital dividends to Hongkong, and the mainland investors can reach Hongkong through Hong Kong and Shanghai.

Third, Shanghai and Hong Kong can promote. RMB Internationalization is developing further. To internationalize the RMB, we must complete trilogy from trade currency to investment currency and reserve currency. After the opening of Shanghai and Hong Kong, the capital invested in the A share market is the use of RMB, and the funds invested in the Hong Kong stock market are also used in Renminbi. This will undoubtedly transform the RMB from the past trade settlement currency into a real investment currency on the international financial arena. Only after the RMB becomes a large investment currency can it finally reach the goal of reserve currency, when the renminbi will become an international currency that matches China's status in the world economy.

　　 Shanghai-Hongkong Stock Connect It also has great significance for Hongkong. After the opening of Hongkong and Hong Kong, on the one hand, it can further expand the RMB offshore business in Hongkong to the capital market, contribute to the development of Hongkong as the offshore center of RMB, and on the other hand, the capital of Chinese and foreign investors will expand the capital pool of Hongkong RMB through Hong Kong and Hong Kong through "Hong Kong and Hong Kong" after "anchorage", which can further promote Hongkong to become a wealth management center in the Asia Pacific region. This will not only open up a new outlet for overseas people, especially the mainland people to accumulate and continue to increase their wealth, but also further consolidate and develop Hongkong's status as the world's third largest international financial centre.

Therefore, we need not get entangled in the performance of Shanghai and Hong Kong stock markets in the early days of Shanghai and Hong Kong's opening up. We should also focus on the deeper significance of Shanghai and Hong Kong's links to the mainland and Hongkong. With the success of a series of reforms in the mainland in the future, the development and consolidation of the status of Hongkong's international financial center is a long-term positive factor for both the A share market and the Hong Kong stock market.