Introduction
"Stock Connect" is a mutual stock market access mechanism between Mainland China and Hong Kong. Stock Connect is a mutual stock market access mechanism between Mainland China and Hong Kong, which is established by the Hong Kong Exchanges and Clearing Limited (“HKEx”), Shanghai Stock Exchange (“SSE”), Shenzhen Stock Exchange (“SZSE”) and China Securities Depository and Clearing Corporation Limited (“ChinaClear”) to allow international and Mainland Chinese investors to trade securities in each other's markets through the trading and clearing facilities of their home exchange.
Under Stock Connect, Hong Kong and overseas investors can trade Shanghai and Shenzhen listed stocks (northbound trading, Shanghai A share – Shanghai Connect or Shenzhen A share – Shenzhen Connect); Mainland Chinese investors can trade Hong Kong-listed stocks (southbound trading, or Hong Kong Connect).
Through the Stock Connect, investors can:
- Participate in growth of the most exciting emerging economy - China
- Diversify investment portfolio with shares from China market as the program covers a wide range of SSE and SZSE A shares
- New opportunities to invest with RMB
- No need to have an account on Mainland
- HKEx subsidiaries are responsible for trading, clearing and settlement. All fund transfers are in Hong Kong.
Market Rules
Trading Quota
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Eligible Shares
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For the list of eligible stocks, please refer to HKEX's website at https://www.hkex.com.hk/mutual-market/stock-connect/eligible-stocks/view-all-eligible-securities?sc_lang=zh-hk
Trading Hours
Shanghai A-shares (Shanghai-Hong Kong Stock Connect) and Shenzhen A-shares (Shenzhen-Hong Kong Stock Connect) will follow the trading hours of the Shanghai Stock Exchange and the Shenzhen Stock Exchange. Starting from five minutes before the morning session and afternoon session of the Mainland market, the Stock Exchange will accept Northbound orders from Exchange Participants. Southbound transactions will be conducted in accordance with the trading hours of the Stock Exchange.
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- 09:20 – 09:25; 14:57 - 15:00: SSE & 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 SSE nor SZSE until their market open
- Any buy or sell orders not executed during the opening call auction session will automatically enter the continuous auction session. Any buy or sell orders not executed during the continuous auction session will automatically enter the closing call auction session.
Trading Calendar
Investors can trade A shares (Stock Connect) only if both the markets in Hong Kong and Mainland China are open for trading and banking services are available in both markets on the corresponding money settlement days (T+1). Below is an example illustrating the holiday arrangement of northbound trading of SSE and SZSE stocks:
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*Day 2 is a business day for both Hong Kong and Mainland China. However, it is a public holiday in Hong Kong on the corresponding money settlement day (Day 3), so A shares (Stock Connect) will not be opened for trading on Day 2.
Settlement
Stocks are settled on trade date ("T") day while money is settled on T +1 day.
The settlement currency is RMB.
Fees and Taxes
Fees and levies related to Northbound trades under Shanghai-Hong Kong / Shenzhen-Hong Kong Stock Connect are as follows:
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The above fees and taxes are collected in RMB and may be subject to changes after SFC's approval.
Disclosure Obligations
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 those three days.
For such investor, every time 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.
Risk disclosure and other information
