What is Shanghai-Hong Kong Stock Connect?

“Shanghai-Hong Kong Stock Connect is a securities trading and clearing links program developed by Hong Kong Exchanges and Clearing Limited (HKEx), Shanghai Stock Exchange (SSE) and China Securities Depository and Clearing Corporation Limited (ChinaClear), aiming to achieve a breakthrough in mutual market access between the Mainland and Hong Kong.”

Under Shanghai-Hong Kong Stock Connect, The Stock Exchange of Hong Kong Limited (SEHK), a wholly-owned subsidiary of HKEx, and SSE will establish mutual order-routing connectivity and related technical infrastructure to enable investors of their respective market to trade designated equity securities listed in the other’s market.

The Hong Kong Securities Clearing Company Limited (HKSCC), also a wholly-owned subsidiary of HKEx, and ChinaClear will be responsible for the clearing, settlement and the provision of depository, nominee and other related services of the trades executed by their respective market participants and investors.

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Online Trading

You can activate the SH-HK Connect account and conduct SH-HK Stock Connect Northbound Trading through our online trading platform. Simple and convenient!

You can also use our free mobile app SHKF eMO! (AAStocks) to conduct SH-HK Stock Connect Northbound Trading anytime, anywhere. Please click here for details.

Please login for account activation or trading.

Dual Privileges

SH-HK Stock Connect privileges that you can’t miss

Clients can enjoy dual privileges in SH-HK Stock Connect Northbound Trading.

  • Privilege 1: Margin interest rate at 8.25%1 for SH-HK Stock Connect Northbound Trading. A preferential margin financing interest rate may be applied for funding amount over RMB$20M, and
  • Privilege 2: The spread of RMB exchange rate as low as 32 pips2 with no transfer fee and no limit.

Probably the best RMB exchange rate in town!

RMB/HKD Buy Sell Spread (PIP)
SHK Global Payments 1.2457 1.2489 32
Bank A 1.2415 1.2536 121
Bank B 1.2386 1.2565 179
Bank C 1.2420 1.2534 114
Bank D 1.2408 1.2546 138

Remarks:

1 Special rate for Shanghai-Hong Kong Stock Connect only.

2 The RMB/HKD exchange rates as shown in the above table are updated on 10 July 2015. The exchange rates may vary from time to time.

Terms & Conditions





Interest in details of SH-HK Stock Connect?

Please call our Customer Service Hotline on (852) 2822 5001 or email to enquiry@SHKdirect.com.

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Remarks:

  • The above information and materials are sourced from the prevailing information provided by HKEx and may be amended or changed as the implementation of Shanghai-Hong Kong Stock Connect and promulgation or preparation of the relevant rules, regulations, agreements and other documentation progresses.
  • Information of Shanghai-Hong Kong Stock Connect will be updated on the HKEX website from time to time. Please visit HKEx's official website for more details.
  • The above information and materials do not contain legal or other advice and should not be relied on as such. Specific legal, tax or other advice about your specific circumstances should always be sought separately before taking any action based on the above information and materials.

 Investments involve risk. Please click here for the Risk Disclosure Statements.

 

Hong Kong and overseas investors can trade in SSE Securities through Shanghai-Hong Kong Stock Connect (i.e. Northbound trading). Similar reciprocal arrangements is adopted for Southbound trading, Mainland investors can trade in SEHK Securities under Shanghai-Hong Kong Stock Connect.

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Eligible Investors and Securities

Eligible Investors

All retail and institutional investors outside Mainland China are eligible to participate in Shanghai-Hong Kong Stock Connect.

Eligible Securities (SSE Securities)

Index Constituents SSE180*, SSE380*
Dual-listed Stocks A shares* of companies listed on both SSE and SEHK

* Excluding stocks on risk alert board and stocks not traded in RMB

Quota

Aggregate Quota  RMB300 billion
  • Calculated end of each trading day
  • Balance: Aggregate Quota – Aggregate Buy Trades + Aggregate Sell Trades
If Aggregate Quota Balance < Daily Quota:
  • Suspend buy order input for the next trading day
If Aggregate Quota Balance increases to Daily Quota level:
  • Resume buy order input for the next trading day

Daily Quota
RMB13 billion
  • Calculated Real-time during trading hours
  • Balance: Daily Quota – Buy Trades + Sell Trades + Adjustments (e.g. Buy Order cancelled, Buy Order rejected by SSE, Buy Order executed at a better price)
If Daily Quota balance ≤ 0:
  • During opening call auction (Pre‐opening): Reject new buy orders until quota balance becomes positive (e.g. due to Buy Order cancellation)
  • During continuous auction (continuous trading): Suspend buy order for the remaining of the day
  • Buy orders already input before suspension will not be affected

Trading Rules

Trading Hours

Northbound Trading will follow SSE’s trading hours. However, SEHK will accept Northbound orders from SEHK participants five minutes before the Mainland market session opens in the morning and in the afternoon.

SSE Trading Session SSE Trading Hours Time for SEHK participants to input Northbound orders
Opening Call Auction 09:15-09:25 09:10-11:30

Continuous Auction (Morning) 09:30-11:30
Continuous Auction (Afternoon) 13:00-15:00 12:55-15:00
  • 09:20-09:25: SSE will not accept order cancellation
  • 09:10-09:15, 09:25-09:30 and 12:55-13:00: Orders and order cancellations can be accepted by SEHK but will not be processed by SSE until SSE’s market open
  • Orders that are not executed during the opening call auction session will automatically enter the continuous auction session.
Settlement Cycle
  • Securities settlement: Trade day (T)
  • Money settlement: T+1
Currency
  • Trading and settlement: RMB


Price Limit:

  • ± 10% on previous closing price
  • Any orders with price beyond the price limit will be rejected
  • The upper and lower price limit will remain the same intra-day

Other Rules:

  • No day trades

Fees:

  • Existing fees and levies applicable to A share market:
     - Handling Fee: 0.00487%
     - Securities Management Fee: 0.002%
     - Seller Stamp Duty: 0.1%
     - Transfer Fee: 0.003%
  • Portfolio fee for depository and nominee services for A shares

For more details of fees and charges, please click here

All the above fees and levies will be collected from CCASS Participants’ designated bank accounts at day-end of T day.

Remarks:

  • The above information and materials are sourced from the prevailing information provided by HKEx and may be amended or changed as the implementation of Shanghai-Hong Kong Stock Connect and promulgation or preparation of the relevant rules, regulations, agreements and other documentation progresses.
  • Information of Shanghai-Hong Kong Stock Connect will be updated on the HKEX website from time to time. Please visit HKEx's official website for more details.
  • The above information and materials do not contain legal or other advice and should not be relied on as such. Specific legal, tax or other advice about your specific circumstances should always be sought separately before taking any action based on the above information and materials.

 Investments involve risk. Please click here for the Risk Disclosure Statements.

I. Related to Shanghai-Hong Kong Stock Connect Arrangement

1. Can investor do day trading on SSE Securities?

Day trading is not allowed for Mainland A shares market. Therefore, Hong Kong and overseas investors buying SSE Securities on T-day can only sell the shares on and after T+1 day.

2. What are the board lot/odd lot, order size and tick size for SSE Securities?

All SSE Securities are subject to the same trading board lot size, which is 100 shares (buy orders must be in board lot). Odd lot trading is only available for sell orders and all odd lots should be sold in one single order. I. It is common that a board lot buy order may be matched with different odd lot sell orders, resulting in odd lot trades. It should be noted that unlike Hong Kong, board lot and odd lot orders are both matched on the same platform on SSE, and subject to the same share price. The maximum order size is 1 million shares and the tick size is uniformly set at RMB 0.01.

3. What is the holiday arrangement?

Investors will only be allowed to trade on the other market on days where both markets are open for trading, and banking services are available in both markets on the corresponding settlement days. This arrangement is essential in ensuring that investors and brokers will have the necessary banking support on the relevant settlement days when they will be required to make payments.

The following table illustrates the holiday arrangement of Northbound trading of SSE Securities:

  Mainland Hong Kong Open for Northbound Trading?
Day 1 Business Day Business Day Yes
Day 2 Business Day Business Day No (HK market closes on money settlement day)
Day 3 Business Day Public Holiday No (HK market closes on trading day)
Day 4 Public Holiday Business Day No (Mainland market closes)

4. What is the contingency arrangement under severe weather conditions?

Northbound trading arrangement under severe weather conditions will be as follows:

Scenarios Northbound Trading of SSE Securities Money Settlement
(for T-1 position)
Securities Settlement
(for T position)
T8/Black rainstorm issued before HK market opens (i.e. before 9:00 a.m.) and discontinued after 12:00 noon Not open No N/A

T8 issued between 9:00 a.m. and 9:15 a.m. Not open Yes
T8 issued after SSE market opens (i.e. 9:15 a.m.) Trading will continue for 15 minutes after T8 issuance, thereafter, only order cancellation is allowed till SSE market close Yes Yes
Black rainstorm issued after HK market opens (i.e. 9:00 a.m.) Trading continues as normal Yes Yes
T8/Black rainstorm discontinued at or before 12:00 noon Trading resumes after 2 hours Postpone to 3 p.m.

5. Under what situations will Hong Kong and overseas investors be restricted from buying SSE Securities?

Investors will only be allowed to sell an SSE Security but restricted from further buying if:

(a) The SSE Security subsequently ceases to be a constituent stock of the relevant indices; and/or
(b) The SSE Security is subsequently under "risk alert"; and/or
(c) the corresponding H share of the SSE Security subsequently ceases to be traded on SEHK, as the case may be.

II. Investors’ Protection and Disclosure Obligations

1. Are investors protected by the investor compensation fund?

  • Hong Kong investors participating in the Shanghai-Hong Kong Stock Connect through SEHK Participants will continue to be protected by Hong Kong laws.
  • Similar to any overseas investment which involves a sub-custody arrangement, investors will also be facing the counterparty risks of any additional parties along the value chain, and in this case ChinaClear which is the central registration company in the Mainland.
  • Similarly for the trading and settlement activities, Hong Kong investors will continue to deal with SEHK Participants and be protected by the SFO.
  • It should however be noted that the current Investor Compensation Fund will not cover any of Northbound activities.

2. Are there any disclosure obligations for trading SSE Securities?

  • According to the Law of the PRC on Securities, when an investor holds or controls up to 5% of the issued shares of a Mainland listed company, the investor is required to report in writing to the CSRC and the relevant exchange, and inform the listed company within three working days. The investor is not allowed to continue purchasing or selling shares in that listed company during the three days.
  • For such investor, every time when a change in his shareholding reaches 5%, he is required to make disclosure (in the same manner as mentioned above) within three working days. From the day the disclosure obligation arises to two working days after the disclosure is made, the investor may not buy or sell the shares in the relevant Mainland listed company.
  • If a change in shareholding of the investor is less than 5% but results in the shares held or controlled by him falling below 5% of the relevant Mainland listed company, the investor is required to disclose the information within three working days.

3. What is the pre-trade checking requirement in selling SSE Securities?

Mainland investors are only allowed to sell A shares which are available in their stock accounts at the end of the previous day. Based on the shareholdings of an investor, SSE will reject a sell order if the investor does not have sufficient shares in his/her account. Therefore, when placing sell orders on SSE securities, investors must ensure they have sufficient shares in their accounts.

III. Related to Settlement Arrangement

How would SSE Securities under Shanghai-Hong Kong Stock Connect be custodised for Hong Kong and overseas investors? Can investors hold SSE Securities acquired through Shanghai-Hong Kong Stock Connect in physical form?

  • Since SSE Securities are issued in scripless form, physical deposits and withdrawals of SSE Securities into/from the CCASS Depository will not be available.
  • Therefore, Hong Kong and overseas investors can only hold SSE Securities through their brokers/custodians. Their ownership of such is reflected in their brokers/custodians’ own records such as client statements.

IV. Related to Shanghai A shares quote

How can investors check Shanghai A shares quote?

Investors can check Shanghai A shares quote through SHK Trader Pro (Simplified Chinese). Please click here for details.

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Remarks:

  • The above information and materials are sourced from the prevailing information provided by HKEx and may be amended or changed as the implementation of Shanghai-Hong Kong Stock Connect and promulgation or preparation of the relevant rules, regulations, agreements and other documentation progresses.
  • Information of Shanghai-Hong Kong Stock Connect will be updated on the HKEX website from time to time. Please visit HKEx's official website for more details.
  • The above information and materials do not contain legal or other advice and should not be relied on as such. Specific legal, tax or other advice about your specific circumstances should always be sought separately before taking any action based on the above information and materials.

 Investments involve risk. Please click here for the Risk Disclosure Statements.

 

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