Shanghai-HK Stock Connect (the “Stock Connect”)
Shanghai-Hong Kong Stock Connect is a programme established by the Hong Kong Exchange (HKEx), Shanghai Stock Exchange (SSE) and China Securities Depository and Clearing Corporation Limited (ChinaClear) to link up Hong Kong and Mainland China’s securities trading and clearing market, in order to provide investors mutual market access between the Mainland and Hong Kong.
Hong Kong and foreign investors can trade stocks listed in SSE through northbound trading, while mainland investors can trade SEHK listed stocks through southbound trading.
Shenzhen-HK Stock Connect
Northbound trading is subject to an Aggregate Quota and a Daily Quota. The northbound Aggregate Quota is RMB 300 billion, while the northbound Daily Quota is RMB 13 billion.
Both the Aggregate Quota and the Daily Quota are calculated on a “net buy” basis. Under which investors can sell their Stock Connect stock at will regardless of the quota balance.
Certain stocks listed on the SSE can be traded, including the constituent stocks of SSE 180 Index, SSE 380 Index, and SSE-listed A shares which have corresponding H shares listed and traded on SEHK. The full list of Eligible Stocks is published on the HKEx website (Eligible Stocks) (SSE stock codes are 6-digits).
- Only Limit Order is accepted. Limit Order refers to trading order made throughout the day irrespective of the trading session.
- Order amendment is not accepted. In the event that investor wishes to amend a placed order, he must first cancel the unexecuted order, and upon successful cancellation, to place a new trading order.
Northbound trading will be in accordance with SSE’s trading hours:
||SSE Trading Hours
|Opening Call Auction
|Continuous Auction (Morning)
|Continuous Auction (Afternoon)
- 09:20-09:25: SSE will not accept order cancellation
- Orders which are not executed during the opening call auction session will automatically enter the continuous auction sessio
- During 09:10-09:15; 09-26-09:30; 12:55-13:00, SSE will not process any orders until market opened, while SEHK accepts trade instruction and trade cancellation.
- The current price restriction imposed by the SSE is “not exceeding±10%of the previous closing price”.
- Price restriction of Shanghai stocks in the risk alert board is ±5%. The mainland stock markets mark “ST and *ST” in front of a stock’s abbreviation as risk alert. Any order priced beyond the price restriction will be rejected by SSE. The upper and lower limits of the price restriction remain unchanged within a single day.
- The lower price limit of buy orders is 3% lower than the current bid price (In the absence of a current bid price, the latest bid price applies; if current bid price is absent, the previous closing price applies)