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Shanghai-Hong Kong Stock Connect
Capture Opportunities in China's stock Market
Convenient way to trade China listed shares
To capture the unprecedented investment opportunities in China’s stock market, you need up-to-the-minute information and a convenient, reliable trading platform. As a leader in cross-border business, China CITIC Bank International provides you exactly this. Our Shanghai-Hong Kong Stock Connect Service gives you quick access to the Shanghai stock market through our state-of-the-art online trading platform and also provide access to various proprietary in-house market analyses.
Shanghai-Hong Kong Stock Connect
Launched in November 2014, Shanghai-Hong Kong Stock Connect (SH-HK Connect) establishes mutual stock market access between Mainland China and Hong Kong, and allows investors on both sides of the Chinese border to trade and settle shares listed on each other's stock market via exchange and clearinghouses.
Southbound Trading Link (STL) - Eligible investors in Mainland China can place orders to trade eligible shares listed on the Stock Exchange of Hong Kong Limited (SEHK) through Mainland securities firms and a securities trading service company established by the Shanghai Stock Exchange (SSE) by routing the orders to the SEHK. The eligible securities include the constituent stocks of the Hang Seng Composite LargeCap Index and the Hang Seng Composite MidCap Index, and the shares of all companies listed on both the SSE and SEHK. Currently, more than two hundreds SEHK-listed shares are eligible for Southbound trading.
Northbound Trading Link (NTL) - Hong Kong investors can place orders to trade eligible shares listed on the SSE through their local brokers and a securities trading service company established by the SEHK by routing the orders to the SSE. Currently, approximately more than five hundreds SSE-listed shares are eligible for trading. This includes the constituent stocks of the SSE180 Index and SSE380 Index, and shares of all SSE-listed companies that have issued both A and H shares if both are simultaneously listed.
Trading Features for Northbound Trading
Trading principles
Eligible Shares: |
Shares eligible to be accepted as "SSE Securities" to trade through the NTL shall comprise all constituent stocks of the SSE180 Index and SSE380 Index, and shares of all SSE-listed companies that have issued both A and H shares (excluding shares that are not traded in RMB and those under risk alert board) |
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Trading currency: |
RMB |
Order types: |
Only secondary market trading is allowed |
Settlement: |
Stock settlement – at the trading day |
Service Hours: |
0930 – 1500 (Following SSE trading hours)
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Quota control: |
Quota control is imposed under Northbound Trading and applies to buy orders which may be suspended or rejected in case of insufficient quota balances:
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Why Trade with China CITIC Bank International?
- Low Commission Rate – as low as 0.125%#
- No Custodian Fee
- Convenient Stock Trading Channels – place orders anytime, anywhere with our Online Securities Trading platform^, CITICmobile or by calling our Securities Trading Hotline at 2287 6088 (Automated securities trading service or Manned securities trading by Customer Service Officer)
- Quick Securities Account Opening – Log on to Internet Banking or visit branch to open Securities Account
- Up-to-date Market Information with in-depth Analysis
- Free real-time snapshot quotes – up to 1,000 real-time quotes per month#
- Ease-of-mind trade confirmation – Receive email/SMS notification once the electronic confirmation is registered
Note:
# Please refer to the "Investment Products Service Fees & Charges" table for details.
^ Customers who place securities orders through our online trading platform may log on to the i-banking for updates on the order status. Personal call confirmations are not available.
Risk Disclosure Statements
Investment involves risks and past performance is not indicative of future performance. The price of stocks fluctuates, sometimes dramatically. The price of a stock may move down or up and may become valueless. It is as likely that losses will be incurred rather than profits made as a result of buying or selling stocks. Investors should consider their own investment objectives, financial resources and relevant circumstances, and read the relevant leaflet, Terms and Conditions for Securities Trading, including risk disclosure statements before making any investment decision. If needed, investors should seek independent professional advice.
The key risks of investing in the securities of Shanghai–Hong Kong Stock Connect include:
- Currency Risk
- Not protected by Investor Compensation Fund
- Quotas used up
- Trading day
- Recalling of eligible stocks
- Restrictions on selling imposed by front-end monitoring
Renminbi is subject to exchange rate risk. The Hong Kong dollar value of investment will decrease if the Renminbi depreciates against Hong Kong dollar. Conversion between Renminbi and other currencies (including Hong Kong dollar) is subject to policy restrictions relating to Renminbi and consequently the relevant regulatory requirements in Hong Kong. Such requirements may be amended subject to changes in the policy restrictions relating to Renminbi. Renminbi is not freely convertible at present. The actual conversion arrangement will depend on the restrictions prevailing at the relevant time.
Transactions under the Northbound or Southbound Trading of
When the respective aggregate quota balance for Northbound and Southbound trading is less than the daily quota, the corresponding buy orders will be suspended on the next trading day (sell orders will still be accepted) until the aggregate quota balance returns to the daily quota level.
Once the daily quota is used up, acceptance of the corresponding buy orders will also be immediately suspended and no further buy orders will be accepted for the remainder of the day. Buy orders which have been accepted will not be affected by the using up of the daily quota, while sell orders will be continued to be accepted. Depending on the aggregate quota balance situation, buying services will be resumed on the following trading day.
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. Investors should take note of the days Shanghai-Hong Kong Stock Connect is open for business and decide according to their own risk tolerance whether or not to take on the risk of price fluctuations in A-shares during the time when Shanghai-Hong Kong Stock Connect is not trading.
When some stocks are recalled from the scope of eligible stocks for trading via Shanghai-Hong Kong Stock Connect, the stocks can only be sold but NOT 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 and SEHK.
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 before the market open on the day of selling (T day). If they fail to meet this deadline, they will not be able to sell those A-shares on T day.
The above is only an overview of some of the risks related to Shanghai-Hong Kong Stock Connect. Investor should undertake your own research and study before you trade or invest.
The above information is for reference only and is neither a recommendation, nor an offer or a solicitation to enter into any investment arrangement.
This webpage has not been reviewed by the Securities and Futures Commission of Hong Kong.
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- Visit us at a Branch
- Call Us at 2287 6788
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- Open Securities Trading Account via i-banking
- Click here to trade online
- Securities Trading Hotline User Guide
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