Is Shanghai-Hong Kong Stock Connect open to all investors?
In general, all Hong Kong and overseas investors are allowed to trade Shanghai Stock Exchange (“SSE”) Securities through Shanghai-Hong Kong Stock Connect. There is no minimum capital requirement for individual investors.
What shares are eligible and ineligible for trading through Shanghai-Hong Kong Stock Connect?
|
|
Northbound Trading (i.e. Hong Kong and overseas investors trading in SSE Securities through Shanghai-Hong Kong Stock Connect) |
Southbound Trading (i.e. Mainland investors trading in SEHK Securities under Shanghai-Hong Kong Stock Connect) |
|
Index Constituents |
SSE 180 Index constituents、 |
Hang Seng Composite LargeCap Index constituents、Hang Seng Composite MidCap Index constituents |
|
A+H Shares |
A shares with corresponding H shares listed on SEHK |
H shares with corresponding A shares listed on SSE |
|
Exclusion |
All SSE-listed shares which are not traded in RMB or which are under risk alert |
All Hong Kong-listed shares which are not traded in HKD; H-shares which have corresponding A-shares listed and traded on a Mainland exchange other than SSE; H-shares which have corresponding SSE-listed shares placed under risk alert |
Northbound trading is only limited to shares being included in the List of Eligible Stocks for Northbound Trading (the “List”), and the List might vary from time to time. In case of a stock being removed from the List, it can only be sold but restricted from being bought.
Is there a quota for Shanghai-Hong Kong Stock Connect?
-
Northbound Trading and Southbound Trading are respectively subject to a separate set of Aggregate and Daily Quota, which is monitored by SEHK and SSE respectively.
-
The Northbound Aggregate Quota is set at RMB 300 billion. The Southbound Aggregate Quota is set at RMB 250 billion.
- The Northbound Daily Quota is set at RMB 13 billion, and the Southbound Daily Quota is set at RMB 10.5 billion. Both the Aggregate Quota and the Daily Quota will apply on a “net buy” basis. Under that principle, investors will always be allowed to sell their cross-boundary securities or input order cancellation requests regardless of the quota balance.
- The Northbound Aggregate Quota balance will be published on SEHK website after SSE’s market close. The Daily Quota balance will be disseminated on HKEx website at 1-minute intervals and through CCOG and OMD Index Feed at 5-second intervals.
What are the trading hours for Northbound trading?
The session for Northbound Trading is in line with the trading hours of SSE. SEHK starts to accept the orders from its participants 5 minutes before the opening of morning session and afternoon session in SSE.
|
SSE Trading Session |
SSE Trading Hours |
Time for SEHK Exchange Participants (“EPs”) to input |
|
Opening Call Auction |
09:15-09:25 |
09:10-11:30 |
|
Continuous Auction (Morning) |
09:30-11:30 |
|
|
Continuous Auction (Afternoon) |
13:00-15:00 |
12:55-15:00 |
- During 09:20-09:25, SSE does not accept instructions for order cancellation;
- During 09:10-09:15, 09:25-09:30 and 12: 55-13:00, the SSE does not process any orders until the market opening, but SEHK still accept orders and orders cancellations.
- Orders that are not executed during the opening call auction session will automatically enter the continuous auction session.
