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China Stock ConnectChina Stock Connect

China Stock Connect

Connect between Shanghai, Shenzhen and Hong Kong Stock Markets
Trade HK Share, SH A Share and SZ A Share in one securities account

Latest Offer

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China Stock Connect Information

Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect are securities trading and clearing links programmes to be developed by Hong Kong Exchanges and Clearing Limited (HKEx), Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE) and China Securities Depository and Clearing Corporation Limited (ChinaClear), aiming to achieve a breakthrough in mutual market access between the Mainland and Hong Kong. All Hong Kong and overseas investors will be allowed to trade Shanghai A Shares and Shenzhen A Shares through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect (Northbound Trading).

Shanghai-Hong Kong Stock Connect
All the constituent stocks of the SSE 180 Index and the SSE 380 Index, and all the SSE-listed A shares that are not included as constituent stocks of the relevant indices but which have corresponding H shares listed on SEHK, except SSE-listed shares which are not traded in RMB and SSE-listed shares which are under risk alert.

 

Shenzhen-Hong Kong Stock Connect
All the constituent stocks of the SZSE Component Index and the SZSE Small/Mid Cap Innovation Index which have a market capitalisation of not less than RMB 6 billion, and all the SZSE-listed A shares which have corresponding H shares listed on SEHK, except SZSE-listed shares which are not traded in RMB and SZSE-listed shares which are under risk alert. At the initial stage of Shenzhen Connect, investors eligible to trade shares that are listed on the ChiNext Board of SZSE under Northbound trading will be limited to institutional professional investors. Subject to resolution of related regulatory issues, other investors may subsequently be allowed to trade such shares.

 

Please refer to the HKEx website www.hkex.com.hk for the list of eligible stocks in Northbound trading.

Trading under Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong will be subject to a Daily Quota. Northbound trading and Southbound trading will respectively be subject to a separate set of Daily Quota, which is monitored by SEHK, SSE and SZSE respectively. The Daily Quota will apply on a "net buy" basis. Under that principle, investors will always be allowed to sell their cross-boundary securities regardless of the quota balance. The Northbound Daily Quota is set at RMB 52 billion for each of Shanghai Connect and Shenzhen Connect.

 

Daily Quota Balance = Daily Quota – Buy Orders + Sell Trades + Adjustments*

 

*Daily Quota Balance will be increased when a) a buy order is cancelled; b) a buy order is rejected by the other exchange; or c) a buy order is executed at a better price.

 

The Daily Quota will be reset every day. Unused Daily Quota will NOT be carried over to the following day’s Daily Quota.

 

If the Northbound Daily Quota Balance drops to zero or the Daily Quota is exceeded during the opening call auction session, new buy orders will be rejected. However, as order cancellation is common during opening call auction, the Northbound Daily Quota Balance may resume to a positive level before the end of the opening call auction. When that happens, SEHK will again accept Northbound buy orders.

 

Once the Northbound Daily Quota Balance drops to zero or the Daily Quota is exceeded during a continuous auction session, no further buy orders will be accepted for the remainder of the day. Same arrangement will apply to the closing call auction of SZSE. Once the Northbound Daily Quota Balance drops to zero or the Daily Quota is exceeded during a closing call auction session, no further buy orders will be accepted for the remainder of the day.

 

It should be noted that buy orders already accepted will not be affected by the Daily Quota being used up and will remain on the order book of SSE and SZSE respectively unless otherwise cancelled by relevant EPs.

SEHK will accept Northbound orders for SSE’s market or SZSE’s market from CCEPs five minutes prior to the opening of each trading session.

 

SHHK

SSE Trading Session SSE Trading Hours Time for EPs 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


Note: 09:20-09:25: SSE will not accept order cancellation;
09:10-09:15; 09:25-09:30; 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.

 

 

SZHK

SZSE Trading Session SZSE Trading Hours Time for EPs 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 - 14:57 12:55 - 15:00
Closing Call Auction 14:57 - 15:00


Note: 09:20-09:25、14:57-15:00: SZSE will not accept order cancellation;
09:10-09:15; 09:25-09:30; 12:55-13:00: Orders and order cancellations can be accepted by SEHK but will not be processed by SZSE until SZSE's market open;
Orders that are not executed during the opening call auction session will automatically enter the continuous auction session and orders that are not executed during the continuous auction session will automatically enter the closing call auction session.

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Investors will only be allowed to trade on days where both markets are open for trading, and banking services are available in both markets on the corresponding settlement days.

  Mainland Hong Kong Open for Northbound?
Day 1 Business Day Business Day ✔  Yes
Day 2 Business Day Business Day ✖ No, because the HK market closes on money settlement day.
Day 3 Business Day Public Holiday ✖ No, because HK market closes on trading day.
Day 4 Public Holiday Business Day ✖ No, because Mainland market closes on trading day.


If a Northbound trading day is a half trading day in the Hong Kong market, Northbound trading will continue until the close of the relevant Connect Market. Please refer to the HKEx website www.hkex.com.hk for the Northbound trading calendar.

Trading and Settlement Currency RMB
Stock Code Must be 6 digits
Order Quantity and Odd Lot The lot sizes of all stocks are 100 shares. Buy order must be in board lot size, while odd lot is only available in sell order. Board lot buy/sell order and odd lot sell order are both matched on the same platform on SSE, and subject to the same share price. Thus, the matched quantity of a board lot buy/sell order can eventually include odd lot. The maximum order size is 1 million shares.
Order Price The tick size is uniformly set at RMB0.01. Dynamic price checking for buy orders would be in place to prevent mischievous behavior towards the use of the Northbound Trading quota. Buy orders with input prices lower than the current best bid (or last traded price in the absence of current best bid, or previous closing price in the absence of both current best bid and last traded price) beyond a predescribed percentage will be rejected. There is a general price limit of ±10% (and ±5% for stocks under special treatment (ie ST and *ST stocks) in the risk alert board) based on previous closing price.
Order Type Only Limit Order will be accepted. Limit Order can be matched at the specified or better price.
Amend Order Order amendment is not allowed. Customer can cancel the order and submit a new order.
Day (Turnaround) Trading Day Trading is not allowed. Shares bought in the Trade Day (T) can only be sold in the Next Trade Day (T+1) or later.
Settlement Cycle Stock will be settled in the Trade Day (T), while money will be settled in the Next Trade Day (T+1).

Since SSE and SZSE Securities are issued in scripless form, physical deposits and withdrawals of SSE Securities into/from the CCASS Depository will not be available. Investors' ownership of such is reflected in their brokers/custodians' own records such as client statements.

Other than commission, the main fees and levies of Northbound trades are as follows:

Items Rate Charged By
Handling Fee 0.00487% of the consideration of a transaction per side SSE / SZSE
Securities Management Fee 0.002% of the consideration of a transaction per side CSRC
Transfer Fee 0.002% of the consideration of a transaction per side ChinaClear Shanghai / ChinaClear Shenzhen
0.002% of the consideration of a transaction per side HKSCC
Stamp Duty 0.1% of the consideration of a transaction on the seller SAT
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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 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.

 

Investors are advised to obtain appropriate professional advice if there is any question on disclosure obligations.

 

 

Foreign investors who trade A shares are required to comply with the following foreign shareholding restrictions:

 

  1. a single foreign investor's shareholding in a listed company (regardless of the channels through which shares in such listed company are held, including through QFII, RQFII and Shanghai and Shenzhen Connect) is not allowed to exceed 10% of the company's total issued shares, while
  2. all foreign investors' shareholding in the A shares of a listed company is not allowed to exceed 30% of its total issued shares.

 

Once SSE/SZSE informs SEHK that the aggregate foreign shareholding of an SSE/SZSE Security reaches 28%, further Northbound buy orders in that SSE/SZSE Security will not be allowed, until the aggregate foreign shareholding of that SSE/SZSE Security is sold down to 26%. If the 30% threshold is exceeded due to Shanghai Connect or Shenzhen Connect, HKEX, upon receiving the notice from SSE/SZSE, will identify the relevant EP (who will inform the relevant investor) and require it to follow the forced-sale requirements.

Buy/Sell Hong Kong Share, Shanghai A Share and Shenzhen A Share in one securities account

  • To trade Hong Kong stocks and Northbound Trading stocks in one securities account, new customers have to open a multi-currency savings account and using it as the settlement account of the securities account.
  • For existing customers with a securities account using multicurrency savings account as settlement account, that securities account can be used to trade Hong Kong stocks and Northbound Trading stocks. New account is not needed.
  • If the settlement account of securities account is not a multicurrency savings account, a new securities account has to be opened using a multicurrency savings account as the settlement account in order to trade Northbound Trading stocks.
  • Since the settlement currency of Northbound Trading stocks are RMB, the transaction amount, commission and other fees are settled in RMB. Customers have to maintain enough RMB balance in the settlement account to buy Northbound Trading stocks.



Free Real Time Snapshot Stock Quote Services (Hong Kong Share + Shanghai A Share + Shenzhen A Share)
For newly opened securities account, real-time snapshot stock quote service for both Hong Kong, Shanghai A share and Shenzhen A share will be available in two business days. Registration is not required.
Existing customer can register Free Real Time Snapshot Stock Quote Services in branches or in "Customer Services" of i-Securities Online Securities Services.


Free Shanghai A Share and Shenzhen A Share Information
Customer can browse the below Shanghai A Share and Shenzhen A Share Information through i-Securities Online Securities Services and Mobile Securities "Easy Trade" Platform:

Market News Displays the latest market news provided by Money 163
Indices Provides Composite Index, Constituent Index and Sector Index overview
Shanghai A Share Ranking Provides Shanghai A share ranking in %Gain, %Loss and Turnover etc
Shenzhen A Share Ranking Provides Shenzhen A share ranking in %Gain, %Loss and Turnover etc
AH Comparison Provides Nominal Price of H-share and A-share with H to A %Premium
Shanghai A Share List Provides the current and previous Shanghai A Share List
Shenzhen A Share List Provides the current and previous Shenzhen A Share List

 

i-Securities Online Securities Services


Mobile Securities "Easy Trade" Platform


Securities Hotline
Call 2828 7000 to contact Securities Customer Services representatives and place Shanghai A Share and Shenzhen A Share orders.

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Key Risks of investing through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect

Risks of investor assets received or held outside Hong Kong

 

Investor assets received or held outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the Securities and Futures Ordinance (Cap. 571, the Laws of Hong Kong) and the rules made thereunder. Consequently, such investor assets may not enjoy the same protection as that conferred on investor assets received or held in Hong Kong.

 

Not protected by Investor Compensation Fund

 

Investors should note that any Northbound Trading under Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect will not be covered by Hong Kong's Investor Compensation Fund.

 

Hong Kong's Investor Compensation Fund is established to pay compensation to investors of any nationality who suffer pecuniary losses as a result of default of a licensed intermediary or authorised financial institution in relation to exchange-traded products in Hong Kong. Examples of default are insolvency, in bankruptcy or winding up, breach of trust, defalcation, fraud, or misfeasance.

 

As for Northbound Trading, according to the Securities and Futures Ordinance, the Investor Compensation Fund will only cover products traded in Hong Kong's recognised securities market (SEHK) and recognised futures market (Hong Kong Futures Exchange Limited, HKFE). Since default matters in Northbound Trading via Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect do not involve products listed or traded in SEHK or HKFE, so similar to the case of investors trading overseas securities, they will not be covered by the Investor Compensation Fund.

 

For further information on Hong Kong's Investor Compensation Fund, investors should refer to the website of Investor Compensation Company Limited. For information on licensees and registered institutions under the SFC, investors should consult the Public Register of Licensed Persons & Registered Institutions in the SFC website.

 

On the other hand, according to the Measures for the Administration of Securities Investor Protection Fund 《證券投資者保護基金管理辦法》, the functions of China Securities Investor Protection Fund (CSIPF, 中國投資者保護基金) include "indemnifying creditors as required by China's relevant policies in case a securities company is subjected to compulsory regulatory measures including dissolution, closure, bankruptcy and administrative takeover by China Securities Regulatory Commission (CSRC) and custodian operation" or "other functions approved by the State Council". As far as Hong Kong investors participating in Northbound Trading are concerned, since they are carrying out Northbound Trading through securities brokers in Hong Kong and these brokers are not Mainland brokers, therefore they are not protected by CSIPF on the Mainland.

 

Quotas used up

 

Once the relevant Daily Quota is used up, acceptance of the corresponding buy orders for SSE Northbound Trading or SZSE Northbound Trading (as the case may be) will also be immediately suspended and no further buy orders for the relevant market will be accepted for the remainder of the day. Buy orders for the relevant market which have been accepted will not be affected by the using up of the relevant Daily Quota, while sell orders will continue to be accepted. Buying services will be resumed on the following trading day.

 

Trading day

 

As mentioned above, Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect will only operate on days when both the Hong Kong and Mainland markets are open for trading and when banks in both markets are open on the corresponding settlement days. So it is possible that there are occasions when it is a normal trading day for the Mainland market but Hong Kong investors cannot carry out any A-share trading. Investors should take note of the days Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect are open for business and decide according to their own risk tolerance capability whether or not to take on the risk of price fluctuations in A-shares during the time when Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect are not trading.

 

Restrictions on selling imposed by front-end monitoring

 

For investors who usually keep their A-shares outside of their brokers, if they want to sell certain A-shares they hold, they must transfer those A-shares to the respective accounts of their brokers by the end of the day immediately preceding the target trading day. If they fail to meet this deadline, they will not be able to sell those A-shares on the target trading day.

 

The recalling of eligible stocks

 

When a stock is recalled from the scope of eligible stocks for trading via Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect for above-mentioned reasons, the stock can only be sold but restricted from being bought. This may affect the investment portfolio or strategies of investors. Investors should therefore pay close attention to the list of eligible stocks as provided and renewed from time to time by SSE, SZSE and SEHK.

 

Currency risks

 

Hong Kong and overseas investors who hold a local currency other than RMB will be exposed to currency risk if they invest in a RMB product due to the need for the conversion of the local currency into RMB. During the conversion, investors will also incur currency conversion costs. Even if the price of the RMB asset remains the same when investors purchase it and when investors redeem / sell it, they will still incur a loss when they convert the redemption / sale proceeds into local currency if RMB has depreciated. Investors should also note that RMB is currently subject to exchange controls imposed by the PRC government, the exchange rate may be easily affected by change in government policies.

 

Risks of investing in companies listed on the ChiNext Board of SZSE ("ChiNext Companies")

 

Hong Kong and overseas investors who trade stocks of ChiNext Companies should further take note of the following:

 

(a) Differences in rules: There are substantial differences in terms of system and rules between the ChiNext Board and the Main Board, including but not limited to:

1) Different conditions for the initial public offering and listing; and

2) Different rules of information disclosure (for instance, ChiNext market ad hoc reports are required to be disclosed on the website designated by the CSRC and the company's website only. If investors only use the channels for the Main Board market information enquiries, they may not be informed of the disclosed information of ChiNext Companies in time).

 

(b) Delisting: Compared to the Main Board, it may be more common for ChiNext Companies to delist, and the delisting process for ChiNext Companies may be faster. After delisting, the stock of the company may no longer be traded and thus investors who bought that stock may lose the entire principal.

 

(c) Operation of ChiNext Companies: Compared to companies listed on the Main Board, ChiNext Companies are usually in their preliminary stage of development with smaller scale and shorter history of operation, and ChiNext Companies may not have a high resistance to market risks and industry risks. In addition, while ChiNext Companies may have great growth potential, there is uncertainty as to the advancement and reliability of new technologies, the applicability and maturity of new models, the market volume and growth potential for new industry, etc. Investors' expectations for high growth in ChiNext Companies may not be realised, and the risks involved in the ChiNext Board are higher than that in the Main Board.

 

(d) Higher fluctuation in stock prices: There may be higher fluctuation in the stock prices of ChiNext Companies by reason of the following factors:

1) Due to the risks involved in the operation of ChiNext Companies (as mentioned above), as the performance of the ChiNext Companies change, they are subject to higher fluctuation in stock prices;

 2) ChiNext Companies have fewer shares circulating in the market. Therefore, stock prices may be more susceptible to manipulation and stock prices may fluctuate more significantly as a result of market speculation.

3) Performance of ChiNext Companies may not be stable. Conventional valuation methods may not be applicable to them and different investors' valuation may be vastly different.

 

(e) Technological failure: It is uncertain whether technologies developed or owned by ChiNext Companies may be turned into real products or services. The relevant products and technologies may be updated or eliminated rapidly. Technological failure may result in loss. Source: HKEx website, SFC's Investor Education Centre, the Code of Conduct for Persons Licensed by or Registered with the SFC, Implementing Measures of the Shenzhen Stock Exchange for the Shenzhen-Hong Kong Stock Connect and Guidelines for the Agency Agreement for the Trading of Securities of the Securities Association of China

 

Securities Services Risk Disclosure:

Investment involves risks. The prices of securities fluctuate, sometimes dramatically. The price of securities may move up or down and may become valueless. Losses may be incurred as well as profits made as a result of buying and selling securities. Customers should carefully consider whether the investment products or services mentioned herein are appropriate for them in view of their investment experience, objectives and risk tolerance level, and read the terms and conditions of relevant Securities Services before making any investment decision. For the details of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, please refer to the relevant promotional materials which include the risk of investment via Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect.

 

Currency Risk Disclosure:

Exchange of renminbi (RMB) to HKD or other currencies is subject to currency exchange rate fluctuation. Customers should bear the risk of RMB exchange rate fluctuations which may cause profit or loss if customer chooses to convert RMB to HKD or other currencies. RMB is currently subject to exchange controls imposed by the PRC government, the exchange rate may be easily affected by change in government policies.

 

Unless the context requires otherwise, this document does not constitute any offer, invitation or recommendation to any person to enter into any securities transaction nor does it constitute any prediction of likely future movements in prices of any securities.This document has not been reviewed by the Securities and Futures Commission or any regulatory authority in Hong Kong.