Of course, Wilson's last year or so as governor of Hong Kong has promoted not only the Shenzhen Bay Bridge and the West Rail Line, but also the establishment of Hong Kong's second new independent stock exchange market, the Hong Kong Stock Exchange.

Under the vigorous promotion of the Hong Kong government, the four stock exchanges, the former Hong Kong Club, the Far East Club, the Gold and Silver Club, and the Kowloon Club, just completed the merger six years ago. After the merger, the newly established Hong Kong Stock Exchange has finally ended the fragmentation and chaos of Hong Kong's securities financing market, and Hong Kong stocks have also entered a new era of more standardization and transparency.

However, the establishment of the Hong Kong Stock Exchange has further raised the threshold for Hong Kong enterprises to raise funds from the securities market. According to the latest amendments to the Listing Rules issued by the Stock Exchange, a listed company must be a company with a paid-up capital of more than HK$50 million and a good operating history for at least 5 financial years. This has blocked a large number of emerging enterprises that are in a hurry to obtain financing from the Hong Kong stock market.

In the global innovation capability ranking released by Fortune magazine not long ago, Hong Kong ranks 11th among all countries and regions in the world, and has even caught up with many old developed countries.

However, although the Oriental Group is the leader of Hong Kong's electronics industry, it does not represent the whole of Hong Kong's electronics industry. For example, according to a survey conducted by the Hong Kong Economic Journal not long ago, Hong Kong currently exports as many as 137 types of electronic terminal consumer goods, involving household goods, toys, electrical appliances and other fields. In fact, the main electronic consumer products of the Eastern Group are only concentrated in a few categories such as televisions, computers, and game consoles.

Naturally, these companies that produce a wide variety of products cannot have such huge financial strength as the Oriental Group, and not only are the banks chasing after the ass and trying to send loans, but even if they issue bonds, they are all AAA ratings. For ordinary companies, listing on a stock exchange is the most efficient and lowest-cost way to raise funds.

On the other hand, under the guidance of Li Xuan's LH Fund, Hong Kong's venture capital industry has developed rapidly in recent years, which has not only promoted Hong Kong's technological innovation, but also brought a large amount of early-stage start-up capital to a large number of new enterprises.

But these venture capitalists are not philanthropists, and they are willing to take huge risks to bet on baby companies in order to reap the excess return on investment. The best way to exit liquidity is to promote the public listing of invested companies on the stock market, so that thousands of ordinary investors in the Hong Kong stock market can take over.

Therefore, both the corporate and financial sectors in Hong Kong have been calling for the establishment of a new stock exchange that is different from the Stock Exchange and aims to provide a financing channel for emerging companies with growth potential.

After feeling the growing demand from all over Hong Kong, Governor Wilson resolutely complied with public opinion and asked the Hong Kong Securities Regulatory Commission, in conjunction with the Securities and Futures Commission, to conduct a feasibility study immediately. Then, in less than a year, Hong Kong's second stock exchange, the Hong Kong Growth Enterprise Market, opened its doors in the midst of joy.

The opening date of the Hong Kong Growth Enterprise Market is set for the first Monday of May - May 2. And just a week ago, the biggest IPO in the history of the Hong Kong stock market came to an end.

Initially, the opening date of the Hong Kong Growth Enterprise Market was March 30, but considering the market conditions in the early days of the exchange, it will have a great impact on attracting new investors. The listing of a giant company like the Oriental Research Institute will inevitably have a great capital siphon effect, which will have a great impact on the entire stock market.

Therefore, the GEM chose to open after the listing of the Oriental Research Institute, not only to avoid the market fluctuations caused by the other party's listing, but also to share the investment boom brought about by its listing.

In fact, as early as half a month before the listing date of the Oriental Research Institute, the single-day turnover of Hong Kong stocks began to gradually expand, and funds continued to withdraw from the stock market, resulting in a slight decline in the Hang Seng stock index.

You must know that with the blessing of the good news from the north and the south, the Hong Kong stock market began to usher in a wave of rising market at the end of March. But this wave of market was suppressed because the listing of the Oriental Research Institute was approaching. These withdrawn funds are not really leaving the stock market, but are waiting to participate in the IPO of the Oriental Research Institute.

According to the listing information provided by Oriental Research Institute to the Hong Kong Stock Exchange, the company's actual valuation is 235 billion Hong Kong dollars (about 30 billion US dollars), and the total share capital is 2.35 billion shares, equivalent to 100 Hong Kong dollars per share. This time, the company will issue 415 million new shares to the market due to the needs of future development, raising a total of 41.5 billion Hong Kong dollars!

At first glance, this amount is indeed staggering, higher than the total market value of most blue chips in the Hong Kong stock market, but it is not exaggerated to the point that the entire stock market continues to fall. What's really striking is that the Oriental Institute's shares are 107 times oversubscribed by Hong Kong public investors.

Investors in the stock market can be roughly divided into two categories, one is the general public investors, which is often referred to as retail investors, and the other is institutional investors. In a mature stock trading market, institutional investors are often the core and mainstream of market trading.

Hong Kong stocks are no exception, although there are still many gamblers who want to get rich overnight by pressing a fairy stock, but more and more investors have been educated again and again by the soaring and plummeting market, and have turned their funds to buy stock funds, so that more professional fund managers can help them manage their finances.

Therefore, only 10% of the new shares listed and issued in the Hong Kong stock market are usually publicly subscribed to all investors, while the remaining 90% will be directly marketed by the new stock underwriting broker to institutional investors who have good cooperation with them.

Of course, if the subscription enthusiasm of ordinary investors is very high and there is an oversubscription, the brokerage company responsible for the underwriting of new shares will also have a proportional callback mechanism in order to meet the needs of ordinary investors.

Generally speaking, if the subscription multiple of new shares exceeds 15 times, the proportion of new shares offered to the public will increase from 10% to 30%, 40% if it exceeds 50 times, and 50% if it exceeds 100 times.

Under normal circumstances, even if a new stock is frantically pursued, it is rarely oversubscribed by 50 times, let alone oversubscribed by 100 times. Occasionally, there are one or two exceptions, and most of them are due to the small total market value of new shares, resulting in a small proportion of new shares issued, which will lead to an extreme shortage of supply.

However, the total amount raised by the Oriental Institute is as high as 41.5 billion Hong Kong dollars, and even if only 10% is for ordinary investors, it is still 4.15 billion Hong Kong dollars. And even with this scale of funds, it has actually been able to steadily rank among the top ten IPOs of the year in Hong Kong stocks.

According to the company's disclosed financial data, in the last fiscal year, the company's annual revenue totaled 100 billion Hong Kong dollars (US$12.8 billion) and its pre-tax profit was 25.5 billion Hong Kong dollars.

In other words, the price-earnings ratio of the Oriental Research Institute is only about 11 times, not to mention far lower than the usual high price-earnings ratio of 15 times and 20 times for high-tech stocks, and even lower than the current average price-earnings ratio of Hong Kong stocks of 13.2 times.

What's more, this level of profitability is still achieved under the R&D investment intensity of up to 28% of the Oriental Research Institute. R&D investment intensity refers to the proportion of an enterprise's annual investment in scientific research funds to its total revenue.

Why has Huawei in another time and space been able to grow to such an extent that even the US government is worried? This is what Huawei has exchanged for long-term and continuous huge R&D investment, and scientific and technological innovation cannot tolerate a little deception!

According to data released by the European Union, in 2018, Huawei ranked fifth in the world with R&D investment of 11.3 billion euros, and first in China, surpassing Intel (10.9 billion euros) and Apple (9.7 billion euros). You must know that Chinese companies have always been known as price butchers, and their profit margins are far less high than their European and American counterparts.

Huawei can say that almost most of its profits are invested in research and development. In addition, China's labor costs are much lower than those of developed countries in Europe and the United States. For the money paid by European and American counterparts to hire one scientific researcher, Huawei can hire two or more scientific research workers. Therefore, it is only natural that it can finally surpass its European and American counterparts in technology.

No pay, no return!

If in the first few years, the Oriental Research Institute could still rely on Li Xuan's golden finger to achieve rapid growth, then the company now not only maintains its leading edge in the field of chips, but also blossoms in other fields such as liquid crystal and mobile communications, relying entirely on R&D investment at any cost.

Based on the R&D investment intensity of 28% of the Oriental Research Institute, the company's annual R&D expenditure is as high as 28 billion Hong Kong dollars. What's more, most of the R&D personnel of the Oriental Research Institute are located in Asia, and like Huawei in another time and space, it can also gain a huge advantage in labor costs when competing with its European and American counterparts.

With such a high-intensity capital investment, since 1986, the Oriental Research Institute has submitted more than 500 new patents for approval every year for six consecutive years, and for the first time in 1990, it has applied for 1,047 new patents in the whole year, surpassing Japanese companies such as Toshiba, Hitachi, and Canon, and becoming the technology company with the largest number of patent applications in the world.

In the first three months of this year, the Oriental Research Institute has obtained 443 patents, continuing to rank first in the world. If the profitability of the Oriental Research Institute represents its present, then the ability of enterprise scientific research and innovation represents the future!

In addition, Li Xuan's well-known name of "God of Wealth" in Hong Kong, it is naturally normal for the stocks of the Oriental Research Institute to be unanimously sought after by Hong Kong people!

You must know that those stockbrokerage companies have begun to use the opportunity of the listing of the Oriental Research Institute to attract people to open accounts. They directly shouted the slogan of "miss this time, regret it for a lifetime", and tirelessly preached to people that the Oriental Research Institute is the last core subsidiary of the Oriental Group that has not yet been listed.

Therefore, under the instigation of this group of people, even many old people in their sixties and seventies who did not know even a few words wanted to get a touch of the wealth of the "God of Wealth Li" and ran to the securities company to open an account.

As a result, there has been a surge in investment accounts in the Hong Kong stock market, but market funds continue to be withdrawn. At the same time, even the fixed deposits of various banks have fallen sharply, and some small banks have even experienced a liquidity shortage.

All of this stems from the SEHK's regulations that require the freezing of investors' funds for IPO subscriptions. The total amount raised by the Oriental Institute is HK$46.5 billion, which is HK$4.15 billion based on a 10% face-to-face issuance by ordinary investors.

However, the new shares of the Oriental Research Institute were oversubscribed by 107 times, which means that the total amount of funds to be frozen is as high as 444 billion Hong Kong dollars.

What is this concept?

The total deposits in Hong Kong at the end of last year were less than 2 trillion Hong Kong dollars, and because of a new share issuance, one-fifth of them will be frozen!

Of course, this is not to say that Hong Kong people really put out one-fifth of their savings to bid for shares of the Oriental Research Institute, after all, various securities companies will provide investors with leverage of varying multiples. And the money is not really frozen, it still remains in the banking system.

However, this still caused huge confusion in Hong Kong's financial capital market, so that the Hong Kong Stock Exchange had to issue an announcement as soon as the storm appeared, making a special exception to the IPO action of the Oriental Research Institute, not freezing the new funds, and investors only need to subscribe for funds within 24 hours of winning the new shares.

In fact, the special case given by the Stock Exchange to the Oriental Research Institute is not limited to the fact that new funds are not frozen. According to the Listing Rules, the proportion of new shares in the total share capital must not be less than 25%. However, the size of the Oriental Research Institute is so large that the Stock Exchange also gave a special exception to the number of new shares issued, and the shares in this IPO only accounted for 15% of the total share capital.

The IPO price of Oriental Research Institute was HK$100 per share, but the actual opening price was as high as HK$124.7. The opening price rose by 24.7%, which is not very prominent in the history of Hong Kong stock IPOs, but if you look at it in combination with the volume of the Oriental Research Institute, it is very scary.

By the time the stock market closed on the first day, the share price of the Oriental Research Institute had risen to 126.5 yuan, and the total market value of the Oriental Research Institute had also swelled to 350 billion Hong Kong dollars!

Before the listing of the Oriental Institute, the total market value of Hong Kong stocks was around HK$1.4 trillion. In other words, the total market value of Hong Kong stocks increased by 25% in one day. After the listing of the Oriental Research Institute, the market value of one of them accounted for one-fifth of the total market value of Hong Kong stocks.

The public listing of the Oriental Research Institute was called an unprecedented red envelope rain in Hong Kong by Hong Kong public media. According to a report by the Hong Kong Economic Journal the next day, at least 700,000 people in Hong Kong had their assets increased by 5,000 Hong Kong dollars in a single day! This is still the opening price of the stock, and it is also the lowest price in a single day.