(5 December 2016, Hong Kong) TCL Multimedia Technology Holdings Limited ("TCL Multimedia" or the "Group", HKSE stock code: 01070) today announces that TCL Corporation ("TCL Corporation", SZSE stock code: 000100), together with TCL Multimedia are included in the eligible shares list of the Northbound Shenzhen Trading Link and the Southbound Hong Kong Trading Link under mutual stock market access between Shenzhen and Hong Kong ("Shenzhen-Hong Kong Stock Connect"), respectively. The Shenzhen-Hong Kong Stock Connect will expand the investment choice for investors in both Mainland China and Hong Kong markets and attract more investors from China and overseas, in an effort to increase the stock valuations in both markets.
The market analysis indicates that the valuations of Hong Kong stocks, generally, have always been comparatively lower than in other global stock markets. In addition, Hong Kong stock market is one of the world's few capital markets that requires listed companies to make bilingual disclosures in Chinese and English according to the Listing Rules. It allows both Chinese and overseas investors to have a fair understanding of the business developments and financial performances of listed companies. It is believed that the Shenzhen-Hong Kong Stock Connect will lure more southbound inflow of capital to enliven the local equity market by boosting trade volume and narrowing the disparity in stock valuations between Mainland China and Hong Kong markets.
Mr. Bo Lianming, CEO of TCL Multimedia, expressed, "It is of great significance for TCL Corporation and TCL Multimedia to be included in the mutual market access programme between Shenzhen and Hong Kong markets for the first time. Shenzhen and Hong Kong are geographically close to each other, thus the launch of Shenzhen-Hong Kong Stock Connect will facilitate the development of capital markets on both sides. Smart TV is the main business of TCL. TCL Multimedia is engaged in production and sales of the smart TV modules and sets as well as operation of the internet platform TV+. TCL is the only domestic TV enterprise that owns an integrated supply chain and combines high-end smart TV products with services for its users. With the official launch of the Shenzhen-Hong Kong Stock Connect, TCL Corporation and TCL Multimedia are expected to be the preferred stocks for Chinese and overseas investors. We will capitalize on the opportunities brought by this new trading link to optimize shareholding structure, enhancing liquidity and valuation of stocks. We will also strive to foster our business, thereby creating greater investment returns for shareholders."
In respect of the Southbound Hong Kong Trading Link under Shenzhen-Hong Kong Stock Connect, the scope of eligible shares includes the constituent stocks of the Hang Seng Composite LargeCap Index, Hang Seng Composite MidCap Index, any constituent stock of the Hang Seng Composite SmallCap Index which has a market capitalization of HK$5 billion or above, and all SEHK-listed shares of companies which have issued both A shares and H shares. A daily quota of RMB10.5 billion is set for the Southbound Hong Kong Trading Link under the Shenzhen-Hong Kong Stock Connect, and there will be no aggregate quota under Shenzhen-Hong Kong Stock Connect.
TCL Multimedia Headquarters Building
TCL Experience Store
About Shenzhen-Hong Kong Stock Connect
Shenzhen-Hong Kong Stock Connect, launched on 5 December 2016, is a mutual market access programme established between Shenzhen and Hong Kong stock markets, allowing investors in Hong Kong and Mainland China to trade and settle eligible shares listed on the other market via local brokerages, exchanges and clearing houses. As an extension of the successful mutual market access programme with Shanghai, the Shenzhen-Hong Kong Stock Connect will further strengthen the integration of the capital markets in Mainland China and Hong Kong.
About TCL Multimedia
Headquartered in China, TCL Multimedia Technology Holdings Limited (HKSE stock code: 01070) is one of the leading players in the global TV industry, engaged in the research and development, manufacturing and distribution of consumer electronic products. Through a new product-and-user-oriented business model that focuses primarily on a "double +" strategy which includes "intelligence + internet" and "products + services" as the main direction, it strives to build a comprehensive ecosystem for smart TVs that provides users with an exquisite experience with its smart products and services. The Group ranked among the top three in the global LCD TV market with a market share of 6.0% in the first half of 2016 according to the latest IHS Technology figures, and ranked among the top three in the PRC LCD TV market with a market share of 15.0% in the first half of 2016 according to CMM's report. TCL Multimedia is included in the eligible shares list of the Southbound Hong Kong Trading Link under mutual stock market access between Shenzhen and Hong Kong ("Shenzhen-Hong Kong Stock Connect").