Shanghai/Shenzhen-Hong Kong Stock Connect

 

Shanghai-Hong Kong Stock Connect is a securities trading and clearing links programme to be 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. Under Shenzhen-Hong Kong Stock Connect, The Stock Exchange of Hong Kong Limited (SEHK), a wholly-owned subsidiary of HKEx, and SZSE 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.

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/or investors.

Quota

Trading under Shanghai/Shenzhen-Hong Kong Stock Connect will, initially, be subject to a maximum cross-boundary investment quota (i.e., Daily Quota).

The Northbound Aggregate Quota balance will be published on HKEx website after SSE/SZSE’s market close. The Daily Quota balance will be disseminated on HKEx website at 1-minute intervals and through CCOG and OMD Index Feed at 5-second intervals.

Daily Quota

The Daily Quota limits the maximum net buy value of cross-boundary trades under Shanghai -Hong Kong Stock Connect each day. The Northbound Daily Quota is set at RMB 13 billion.The Southbound Daily Quota is set at RMB 10.5 billion.

Daily Quota will be refreshed and remain the same everyday, subject to the balance of the Aggregate Quota. Unused Daily Quota will NOT be carried over to next day’s Daily Quota.

Shanghai Connect

In the initial phase, Hong Kong and overseas investors will be able to trade certain stocks listed on the SSE market (i.e. “SSE Securities”). These include all the constituent stocks from time to time of the SSE 180 Index and 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 the following:

(a) SSE-listed shares which are not traded in RMB; and

(b) SSE-listed shares which are included in the “risk alert board”1.

These eligible shares will collectively be referred to as “SEHK Securities”. The stock codes of SSE Securities are 6 digits and investors should use SSE stock codes when placing orders.

Shenzhen Connect

Hong Kong and overseas investors will be able to trade certain stocks listed on the SZSE market (i.e. “SZSE Securities”). These include all the constituent stocks of the SZSE Component Index (SZCI) and of the SZSE Small/Mid Cap Innovation Index (SZII) which have a market capitalisation of RMB 6 billion or above; and all the SZSE-listed A shares of companies which have corresponding H shares listed on SEHK, except the following:

(a) SZSE-listed shares which are not traded in RMB; and

(b) SZSE-listed shares which are included in the “risk alert board”1.

Trading Hours

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

09:20 09:25: 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/SZSE until SSE/SZSE’s market open

Orders that are not executed during the opening call auction session will automatically enter the continuous auction session