Shanghai-Hong Kong Stock Connect
ICBC (Macau) has provided the Shanghai-Hong Kong Stock Connect investment services by letting you to grab advantage of possible fortune-making opportunity in Shanghai and Hong Kong stock markets in advance and at any time.
Introduction of Shanghai-Hong Kong Stock Connect
Shanghai-Hong Kong Stock Connect is a cross boundary securities trading program under which Shanghai Stock Exchange and Stock Exchange of Hong Kong allow investors in two places to trade for respective stock markets. Investors in Hong Kong can trade eligible shares listed on the Shanghai Stock Exchange through the local brokers and likewise investors in Shanghai can trade eligible shares listed on the Stock Exchange of Hong Kong through the local brokers.
Shanghai-Hong Kong Stock Connect is divided into 2 parts.
North-bound Connect: Hong Kong and foreign investors can directly trade the eligible listed shares on the Shanghai Stock Exchange.
The Trading Rules of “North-bound Connect”:
| Trading Hour |
- Opening Call Auction: 09:15 – 09:25
- Continuous Auction: 09:30 – 11:30/13:00 – 15:00
- Acceptance of order placing will begin with 5 minutes in advance before each trading period. |
| Investment Quota |
- 300 Billion RMB of Aggregate quota
- 13 Billion RMB of daily quota |
| Stock Code |
- The stock code of “A-Share” is 6 digits. |
| Price Limitation |
- Not exceeding 10 % of the previous closing price.
- All trading orders out of the range of the price limitation are not accepted. |
| Settlement Date |
- Stock Settlement: T day
- Money Settlement: T+1 day |
| Currency |
- Trading and settlement currency: RMB |
| Order Type |
- Only to accept limit pricing orders |
| Lot Size |
- 100 Shares/Lot. (Buy-in instruction should be placed in full lot size.), odd lot trading is only available for selling orders. |
| Fees & Levies |
- Handling Charge, Custody Fee, Script Fee, Stamp Duty (Sell orders only) |
Notes: Same day trading is not allowed for A-Shares market. Therefore, investors who bought North-bound Connect stock on T-day can only sell the shares on and after T+1 day.
South-bound Connect: Qualified Mainland investors can directly trade with the eligible shares listed on the Stock Exchange of Hong Kong through the local brokers.
The Superiority of Services offered by ICBC (Macau) in Shanghai-Hong Kong Stock Connect
RMB cross-border services
We provide a wide range of RMB financial services, including: RMB Scheduled Remittance, Securities Trading Account, and RMB Settlement Account, etc.
Securities hotline
By providing considerate and professional services via our Shanghai-Hong Kong Stock Connect securities hotline, investors can trade with the eligible listed shares through our Shanghai-Hong Kong Stock Connect and increase your wealth immediately.
Risk Disclosure Declaration
Investor Compensation Fund
Investors should note that any North-bound or South-bound trading under Shanghai-Hong Kong Stock Connect will not covered by Hong Kong’s Investor Compensation Fund.
Quotas used up
Once the remaining aggregate quota of North-bound and South-bound trading are less than their respective daily quota, the corresponding buy orders will be suspended on the next trading day (but sell orders are still acceptable), and until the aggregate quota reaches the level of the daily quota. When the daily quota has been used up, the corresponding buy orders will immediately be suspended (If the buy order has been accepted, it will not be affected by the used up daily quota, and on-going order placing is still accepted.) and no further buying orders will be accepted for the day. However, the trading resumption of buy order will be depended on the remaining aggregate quota situation of the next trading day.
Differentiation of trading day
As mentioned above, Shanghai-Hong Kong Stock Connect will only operate on days when both markets are open for trading and when banks in both markets are open on the corresponding settlement days. Thus, 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 that Shanghai-Hong Kong Stock Connect is open for business and decide according to their own risk tolerance and capability, whether or not to take on the risk of price fluctuation in A-Shares, during the time when Shanghai-Hong Kong Stock Connect is not opened for trading.
The recalling of eligible shares
When a stock is recalled from the list of eligible shares for trading via Shanghai-Hong Kong Stock Connect for the above-mentioned reasons, the shares 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 shares as provided and renewed from time to time by Shanghai Stock Exchange and Stock Exchange of Hong Kong.
Currency risks
Hong Kong and overseas investor who holds a local currency other than RMB will be exposed to currency risk if he/she invests in a RMB product due to the need for the conversion of the local currency into RMB. During the conversion, you will also incur costs of currency conversion. Even if the price of the RMB asset remains the same, you will still incur a loss when you convert the redemption / sale proceeds into local currency if RMB has depreciated.
（6）The above declaration of the risk disclosure is for reference only. For details, please refer to the “Risk Disclosure Statement of Shanghai-Hong Kong Stock Connect and Declaration of Customer”.