Stock Connect
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Investor Eligibility & Eligible Stocks
Except ChiNext Stocks of Shenzhen Stock Exchange (SZSE) which may only be traded by institutional professional investors in the initial stage, Hong Kong and overseas investors are allowed to trade any Connect Securities through Shanghai and Shenzhen Connect. Only Mainland institutional investors and those individual investors who satisfy the eligibility criteria (i.e. Individual investors who hold an aggregate balance of not less than RMB 500,000 in their securities and cash accounts) will be accepted to trade SEHK Securities in Southbound trading.
The list of eligible SSE/SZSE stocks provided by SEHK will be updated from time to time, and customers should pay close attention to the list of eligible stocks of HKEX.
Stock Connect Trading Hours
Northbound trading follows SSE's and SZSE's trading hours. However, SEHK will accept Northbound orders from SEHK Participants five minutes before the Mainland market sessions open in the morning and in the afternoon.
| Trading Session | SSE & SZSE Trading Hours | Time for Exchange Participants to input Northbound orders |
|---|---|---|
| Opening Call Auction | 09:15 – 09:25 | 09:10 – 11:30 |
| Continuous Auction (Morning) | 09:30 – 11:30 | |
| Continuous Auction (Afternoon) | 13:00 – 14:57 | 12:55 – 15:00 |
| Closing Call Auction | 14:57 – 15:00 |
Note:
- 09:20 - 09:25: SSE 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 until SSE’s market open.
- Any buy or sell orders not executed during the opening call auction session will automatically enter the continuous auction session. Any buy or sell orders not executed during the continuous auction session will automatically enter the closing call auction session.
Trading Arrangement
If the trading day falls on a public holiday in the Mainland or Hong Kong, please refer to HKEx website for details of the trading arrangement.
Trading Quota
- Trading under Stock Connect will be subject to a Daily Quota. The Daily Quota is applied on a “net buy” basis. Based on that principle, investors are always allowed to sell their cross-boundary securities regardless of the quota balance. The Daily Quota limits the maximum net buy value of cross-boundary trades under each of Shanghai and Shenzhen Connect each day. The Northbound Daily Quota is set at RMB 13 billion for each of Shanghai Connect and Shenzhen Connect. (Note: There is no Aggregate Quota for Shanghai and Shenzhen Connect as the Aggregate Quota for Shanghai Connect was abolished since 16 August 2016.)
- The Northbound Daily Quota balance is disseminated on the HKEX website at 1-minute intervals and through CCOG and OMD Index Feed at 5-second intervals.
- Daily Quota Balance = Daily Quota - Buy Orders + Sell Trades + Adjustments
- The Daily Quota will be reset every day. Unused Daily Quota will not be carried over to next day's Daily Quota.
- If the Northbound Daily Quota Balance drops to zero or the Daily Quota is exceeded during the opening call auction session, new buy orders will be rejected. However, as order cancellation is common during opening call auction, the Northbound Daily Quota Balance may resume to a positive level before the end of the opening call auction. When that happens, SEHK will again accept Northbound buy orders.
- Once the Northbound Daily Quota Balance drops to zero or the Daily Quota is exceeded during a continuous auction session, no further buy orders will be accepted for the remainder of the day. The same arrangement will be applied to the closing call auction of SZSE. It should be noted that buy orders already accepted will not be affected by the Daily Quota being used up and will remain on the order book of SSE and SZSE respectively unless otherwise cancelled by relevant SEHK Participants.
Trading Information
- Trading Currency for SSE Securities is in RMB only.
- For Northbound trading, only limit orders (SSE limit orders can be matched at the specified or better price) will be accepted for SSE Securities throughout the day and the orders cannot be amended. Exchange Participants who wish to amend their Northbound orders must cancel the original orders first and then input new orders.
- Day trading is not allowed for Mainland A shares market. Therefore, buying SSE Securities on T-day can only sell the shares on and after T+1).
- The existing RMB Equity Trading Support Facility operated by Hong Kong Securities Clearing Company Limited (HKSCC), which serves as a back-up facility to enable investors to use HKD to buy RMB-denominated shares listed on SEHK, will not be available for SSE Securities trading initially. Clients should ensure they have sufficient RMB to settle SSE Securities trades.
- All trading must be conducted on SSE, i.e. no over-the-counter (OTC) or manual trades are allowed; also block trade facility will not be available.
- At inception, Shanghai-Hong Kong Stock Connect will only encompass secondary market trading. Primary market activities, such as initial public offering will not be supported.
- The stock codes of SSE Securities are 6 digits and clients should use SSE stock codes when placing orders. All SSE Securities are subject to the same trading board lot size, which is 100 shares (buy orders must be in board lot). Odd lot trading is only available for sell orders and all odd lots should be sold in one single order. It is common that a board lot buy order may be matched with different odd lot sell orders, resulting in odd lot trades. It should be noted that unlike Hong Kong, board lot and odd lot orders are both matched on the same platform on SSE, and subject to the same share price. The maximum order size is 1 million shares and the tick size is uniformly set at RMB 0.01.
- For Northbound trading, investors are allowed to input odd lot sell orders. However, odd lot buy orders will not be accepted. In addition, an investor (or ultimate beneficial owner) who places an odd lot sell order must ensure he/she sells all the odd lot in that SSE Security in one go.
- For SSE Securities, there is a general price limit of ±10% (and ±5% for stocks under special treatment (i.e. ST and *ST stocks) in the risk alert board) based on previous closing price. The upper and lower price limit will remain the same intra-day.
- Based on the shareholdings of an investor, SSE will reject a sell order if the client does not have sufficient shares in his account. For Northbound trading, SEHK will apply pre-trade checking on all Northbound sell orders at the clients level to ensure there is no overselling by individual client. Sell orders will be rejected if the cumulative sell quantity for the day is higher than the client’s shareholding position at market open. Therefore, when placing sell orders, clients must ensure they have sufficient shares in their accounts opened with the Company who acts as the selling broker. If the shares are kept in an account opened with another Exchange Participant or a custodian, clients must first transfer the shares to the Company on T-1 in order to sell their shares on T day. An additional settlement instruction (SI) session will be available in the morning on T day to allow custodians to transfer SSE Securities. The sellable quantity of SSE Securities will then be updated for pre-trade checking.
Fees & Charges
Regarding the Fees and Taxes applicable to SSE Securities, please refer to Fees & Charges - Stock Connect for more details.
FAQ
FAQ about Stock Connect can refer to the information booklet on HKEX website.
