The Securities and Futures Commission (Hong Kong Securities Regulatory Commission) and the China Securities Regulatory Commission (CSRC) published on April 10, 2014 Joint Announcement (Joint Announcement), in principle, to establish a trading and settlement interconnection mechanism between China and Hong Kong stock market (Shanghai-Hong Kong Stock Connect). Under the Shanghai-Hong Kong Stock Connect project, the Stock Exchange of Hong Kong Limited (Stock Exchange; Hong Kong Stock Exchange) The wholly-owned subsidiary) and the Shanghai Stock Exchange (Shanghai Stock Exchange) realize the mutual transfer of market orders between the two places and the establishment of relevant technical infrastructure (Shanghai-Hong Kong Exchange), so that investors in their respective markets can buy and sell stocks listed on the other market. .
Hong Kong Securities Clearing Company Limited (HKSCC; a wholly-owned subsidiary of the Hong Kong Stock Exchange) and China Securities Depository and Clearing Co., Ltd. (China Clearing) Settlement and settlement of investors in Mainland China and Hong Kong through the Shanghai-Hong Kong Stock Exchange and the provision of depository, nominal holders and other related services.
*For details of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, please check the HKEx Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect.
*Learn about Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect Qualified Shares.
Except for the initial trading of institutional stock investors in the GEM stocks of the Shenzhen Stock Exchange, the Stock Exchange accepts all Hong Kong and overseas investors to participate in Shanghai. China Connect and Shenzhen-Hong Kong Stock Connect trade China Connect Securities. Only mainland institutional investors and eligible individual investors can participate in the Southbound trading of Hong Kong Stock Connect shares, subject to the individual investor's balance in their securities accounts and fund accounts. Less than RMB 500,000.
Shanghai Stock Connect
At present, Hong Kong and overseas investors can buy and sell certain stocks listed on the Shanghai Stock Exchange (Shanghai Stock Connect), including constituents of the SSE 180 Index, constituent stocks of the SSE 380 Index, and not included in the above constituent stocks but with H shares. Stocks listed on the Stock Exchange listed and traded on the Stock Exchange, but excluding the following stocks:
(a) Shanghai stocks that are not traded in RMB; and (b) Shanghai stocks that are subject to risk warnings.
Shenzhen-Hong Kong Express
After the launch of Shenzhen-Hong Kong Stock Connect, Hong Kong and overseas investors will be able to buy and sell individual stocks listed on the Shenzhen Stock Exchange (ie, Shenzhen Stock Connect), including all the market capitalizations of the Shenzhen Component Index and the SZSE Small and Medium Innovation Index. RMB 6 billion constituent stocks and all A shares listed on the Stock Exchange with relevant H shares listed on the Stock Exchange, excluding: (a) deep shares not traded in RMB; and (b) risk warnings or divisions The deep share of the card arrangement.
According to the joint announcement, both the China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission will actively strengthen cross-border supervision and law enforcement cooperation.
The China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission will take all necessary measures to ensure that the parties will protect the interests of investors in Shanghai-Hong Kong Stock Connect. Establish an effective mechanism to respond to violations in their respective markets or in both markets in a timely manner.
Hong Kong investors who participate in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect through the participants of the Stock Exchange will continue to be protected by the laws of Hong Kong.
Similar to any overseas investment involving sub-custodian arrangements, investors also face the counterparty risk of any additional person in the value chain (here referred to as the centrally registered company in the Mainland).
Similarly, in terms of trading and settlement activities, Hong Kong investors will continue to coordinate with the participants of the Stock Exchange and be protected by the Securities and Futures Ordinance. However, it is worth noting that the existing investor compensation fund does not cover any northbound transactions.
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