1. What is the Mutual Market Access Program?
2. Are Shanghai Connect and Shenzhen Connect open to all investors?
3. If the SSE/SZSE-listed security is removed from the Shanghai-Hong Kong Stock Connect/ Shenzhen-Hong Kong Connect, can we trade the security?
4. How does the Aggregate Quota work?
5. Is there a quota?
6. Are investors protected by the Investor Compensation Fund established under the Securities and Futures Ordinance (“SFO”)?
7. Can Hong Kong and overseas investors participate in the initial public offering of SSE and SZSE A shares through Shanghai Connect and Shenzhen Connect?



"Trading Arrangement" Frequently asked Questions and Answers



8. If I want to trade SSE/ SZSE securities through your bank, what should I do?
9. What types of transaction channels can I trade SSE/ SZSE securities through your bank?
10. What are the trading hours for trading SSE Securities through Shanghai Connect and trading SZSE Securities through Shenzhen Connect?
11. What is the currency for trading and settling SSE and SZSE Securities via Shanghai Connect and Shenzhen Connect?
12. Is day trading of Connect Securities allowed?
13. Is there any foreign shareholding restriction on SSE and SZSE Securities?
14. Are there any disclosure obligations for SSE and SZSE Securities?
15. What is the pre-trade checking?
16. What would be the trading, clearing and settlement arrangements for SSE and SZSE Securities when a Hong Kong holiday falls on a Mainland business day?
17. What will be the trading arrangement for SSE and SZSE Securities under severe weather conditions, for example, when typhoon signal number 8 or above and/or black rainstorm warning is issued in Hong Kong?



"Clearing, Settlement and Risk Management Arrangement" Frequently asked Questions and Answers



18. What is the settlement cycle for SSE and SZSE Securities trades?
19. How are Connect Securities under Shanghai and Shenzhen Connect held for Hong Kong and overseas investors? Can investors hold Connect Securities acquired through Shanghai and Shenzhen Connect in physical form?
20. Can Hong Kong and overseas investors attend the shareholder meetings of issuers of Connect Securities in person or appoint more than one person to attend and act as proxy at the meetings on their behalf?



"Market Information" Frequently asked Questions and Answers



21. Can Hong Kong and overseas investors through CCASS Participants request to receive hard copies of corporate communications such as circulars, annual reports from SSE/SZSE-listed companies?
22. What are the fees and taxes applicable to the trading and clearing of A shares under Northbound Trading?

"Securities Margin Trading" Frequently asked Questions and Answers

1. What is the Mutual Market Access Program?
   
   • It is the establishment of mutual market access between the Mainland and Hong Kong, with Shanghai and Shenzhen Connect for the stock market.
   • Shanghai Connect is a securities trading and clearing links programme developed by Hong Kong Exchanges and Clearing Limited (HKEX), Shanghai Stock Exchange (SSE) and China Securities Depository and Clearing Corporation Limited (ChinaClear), aiming to achieve a breakthrough in mutual market access between the Mainland and Hong Kong.
     
   • Under Shanghai Connect, The Stock Exchange of Hong Kong Limited (SEHK), a wholly-owned subsidiary of HKEX, and SSE have established mutual order-routing connectivity and related technical infrastructure to enable investors of their respective market to trade designated equity securities listed in the other’s market.
   • Hong Kong Securities Clearing Company Limited (HKSCC), also a wholly-owned subsidiary of HKEX, and ChinaClear are responsible for the clearing, settlement and the provision of depository, nominee and other related services of the trades executed by their respective market participants and/or investors.
     
   • Shanghai Connect was launched on 17 November 2014. Information relating to the development of Shanghai Connect can be found on the HKEX website.
   • Following the successful launch of Shanghai Connect, Shenzhen Connect is considered as its natural extension. Shenzhen Connect will by and large apply similar programme principles and design.
   • On 16 August 2016, the Securities and Futures Commission (“SFC”) and China Securities Regulatory Commission (“CSRC”) made a Joint Announcement (“Joint Announcement”) regarding the in-principle approval for the development of Shenzhen Connect for the further establishment of mutual stock market access between the Mainland and Hong Kong.
     
     
2. Are Shanghai Connect and Shenzhen Connect open to all investors?
   

   • Trading of SSE-listed Securities, under Shanghai Connect except STAR stocks, is open to all Hong Kong and overseas investors including institutional and individual investors. Trading of STAR stocks is limited to institutional professional investors.
     
   • Trading of Shenzhen Stock Exchange (SZSE)-listed Securities, under Shenzhen Connect except ChiNext stocks, is open to all Hong Kong and overseas investors including institutional and individual investors. ChiNext stocks will be limited to institutional professional investors during the initial launch of Shenzhen Connect.
     
   • As informed by the HKEx, the Mainland investors are not allowed to subscribe China Connect Securities Trading Service from 25 July 2022 (“effective date”). For the Mainland investors who have subscribed this trading service prior to the effective date, they can still buy and sell the China Connect Securities during the transitional period (from 25 July 2022 to 23 July 2023). They can only SELL their existing China Connect Securities holdings after the transitional period.

   
   
3. If the SSE/SZSE-listed security is removed from the Shanghai-Hong Kong Stock Connect/ Shenzhen-Hong Kong Connect, can we trade the security?
   
   • Investors will only be allowed to sell that SSE Security but restricted from further buying.
     
   • For the sake of clarity, Investors will only be allowed to sell a SSE Security but restricted from further buying if:
     (a) the SSE Security subsequently ceased to be a constituent stock of the relevant indices; and/or
     (b) the SSE Security was subsequently under “risk alert”; and/or
     (c) the corresponding H share of the SSE Security were subsequently delisted from SEHK, as the case may be
     
   • Investors will only be allowed to sell but will be restricted from buying a SZSE Security if:
     (a) the SZSE Security subsequently ceased to be a constituent stock of the relevant indices; and/or
     (b) the SZSE Security , based on any subsequent periodic review, had a market capitalisation of less than RMB 6 billion; and/or
     (c) the SZSE Security was subsequently placed under risk alert; and/or
     (d) the corresponding H shares of such securities were subsequently delisted from SEHK, as the case may be.
     
     
     
4. How does the Aggregate Quota work？
   The Aggregate Quota for Shanghai Connect has been abolished since 16 August 2016. No Aggregate Quota has been established for Shenzhen Connect.
   
   
5. Is there a quota?
   

   • Trading under Shanghai Connect and Shenzhen Connect will be subject to a Daily Quota.
     
   • Hong Kong and overseas investors are able to trade selective stocks listed on the SSE/SZSE market (Northbound trading) are subject to a separate set of Daily Quota, which is monitored by SEHK, SSE and SZSE respectively.
     
   • The Daily Quota is applied on a “net buy” basis. Based on that principle, investors are not restricted by Daily Quota balance when selling their cross-boundary securities. 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.
     

     Northbound trading quota

     Daily Quota for each of Shanghai Connect and Shenzhen Connect: RMB 13 billion

     
     

   • 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.

   
   
6. Are investors protected by the Investor Compensation Fund established under the Securities and Futures Ordinance (“SFO”)?
   Investors should note that the Investor Compensation Fund established under the SFO does not cover any Northbound activities. However, investor protection measures which are required under the SFO to be observed by Exchange Participants vis-à-vis their clients, such as those relating to dealings with client securities and payment of client money into segregated accounts, are also applicable to Northbound trading activities undertaken by Exchange Participants for their clients under Shanghai and Shenzhen Connect.
   
   
7. Can Hong Kong and overseas investors participate in the initial public offering of SSE and SZSE A shares through Shanghai Connect and Shenzhen Connect?
   Shanghai Connect and Shenzhen Connect only encompass secondary market trading. Primary market activities, such as initial public offering are not supported.
   
   
"Trading Arrangement" Frequently asked Questions and Answers


8. If I want to trade SSE/ SZSE securities through your bank, what should I do?
   Customers must open a securities account and a multi-currency savings account as a settlement account. Also, customer need to sign the “China Connect Securities Trading Services - Customer Declaration” before they are allowed to trade. /span>
   
   
9. What types of transaction channels can I trade SSE/ SZSE securities through your bank?
   You can trade SSE/SZSE securities via our Securities Mobile Application, Internet Banking or Operator-assisted securities hotline.
   
   
10. What are the trading hours for trading SSE Securities through Shanghai Connect and trading SZSE Securities through Shenzhen Connect?
    

    
    

    SSE Trading Session	SSE Trading Hours
    Opening Call Auction	09:15 – 09:25
    Continuous Auction (Morning)	09:30 – 11:30
    Continuous Auction (Afternoon)	13:00 – 15:00

    
    
    • 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
    • Orders that are not executed during the opening call auction session will automatically enter the continuous auction session
      
      

      SZSE Trading Session	SZSE Trading Hours
      Opening Call Auction	09:15 – 09:25
      Continuous Auction (Morning)	09:30 – 11:30
      Continuous Auction (Afternoon)	13:00 – 14:57
      Closing Call Auction	14:57 – 15:00

      
      
    • 09:20 – 09:25, 14:57 – 15:00: SZSE 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 SZSE until SZSE’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.

    
    
11. What is the currency for trading and settling SSE and SZSE Securities via Shanghai Connect and Shenzhen Connect?
    Currently, all SSE and SZSE Securities are traded in RMB. Investors therefore trade and settle SSE and SZSE Securities in RMB.
    
    
12. Is day trading of Connect Securities allowed?
    In the Connect Markets, shares purchased by investors cannot be sold before settlement, which means day trading is not allowed. Hong Kong and overseas investors as well as Exchange Participants (EPs) trading Connect Securities through Shanghai and Shenzhen Connect have to follow the same rule.
    
    
13. Is there any foreign shareholding restriction on SSE and SZSE Securities?
    

    • Under current PRC rules, a single foreign investor’s shareholding in a listed company (regardless of the channels through which shares in such company are held, including QFII, RQFII and Shanghai and Shenzhen Connect) is not allowed to exceed 10% of the company’s total issued shares, while all foreign investors’ shareholding in the A shares of a listed company is not allowed to exceed 30% of its total issued shares.
    • When the aggregate foreign shareholding of an individual A share reaches 26%, SSE or SZSE, as the case may be, will publish a notice on its website (http://www.sse.com.cn/disclosure/diclosure/qfii) for SSE and (http://www.szse.cn/main/disclosure/news/qfii/) for SZSE. If the aggregate foreign shareholding exceeds the 30% threshold, the foreign investors concerned will be requested to sell the shares on a last-in-first-out basis within five trading days.
      
    • SSE/SZSE Securities purchased through Shanghai Connect and Shenzhen Connect are considered in totality with those purchased under QFII and RQFII, and subject to the same foreign shareholding restriction. Once SSE/SZSE informs SEHK that the aggregate foreign shareholding of an SSE/SZSE Security reaches 28%, further Northbound buy orders in that SSE/SZSE Security will not be allowed, until the aggregate foreign shareholding of that SSE/SZSE Security is sold down to 26%. If the 30% threshold is exceeded due to Shanghai Connect or Shenzhen Connect, HKEX will identify the relevant EP and require it to follow the forced-sale requirements.
    • HKEX will publish a notification on its website to inform the market about suspension of buy orders if the shareholding limit goes beyond 28% and about the resumption of buy orders if the shareholding drops below 26%.
      
    • Foreign investors can continue to sell the A share whose aggregate foreign shareholding has reached the 30% threshold. If such selling activities cause the aggregate foreign shareholding to drop below the 30% threshold within 5 trading days, EPs who were subject to the forced-sale requirement may submit an application to the SEHK for a forced-sale exemption.
    • EPs should monitor their clients’ shareholdings in SSE and SZSE Securities and remind their clients to comply with the 10% single foreign investor’s restriction and the forced-sale arrangement.

    
    
14. Are there any disclosure obligations for SSE and SZSE Securities?
    

    • According to the Law of the PRC on Securities, when an investor holds or controls up to 5% of the issued shares of a Mainland listed company, the investor is required to report in writing to the CSRC and the relevant exchange, and inform the listed company within three working days. The investor is not allowed to continue purchasing or selling shares in that listed company during the three days.
      
    • For such investor, every time when a change in his shareholding reaches 5%, he is required to make disclosure (in the same manner as mentioned above) within three working days. From the day the disclosure obligation arises to two working days after the disclosure is made, the investor may not buy or sell the shares in the relevant Mainland listed company.
    • If a change in shareholding of the investor is less than 5% but results in the shares held or controlled by him falling below 5% of the relevant Mainland listed company, the investor is required to disclose the information within three working days.

    
    
15. What is the pre-trade checking?
    

    • Mainland investors are only allowed to sell SSE/SZSE-listed securities which are available in their ChinaClear accounts at the end of the previous day (T-1). Such shareholding information is forwarded to SSE and SZSE each day-end. Based on the T-1 shareholdings, SSE and SZSE will reject a sell order if the investor does not have sufficient shares in his account.
    • SSE and SZSE will conduct the same pre-trade shareholding checking for SEHK Subsidiaries’ sell orders. Under Shanghai and Shenzhen Connect, SSE/SZSE Securities acquired by Hong Kong and overseas investors will be held in HKSCC’s omnibus stock accounts maintained with ChinaClear. Therefore, on each trading day, SSE and SZSE will validate the relevant SEHK Subsidiary’s’ sell orders in respect of SSE/SZSE Securities against HKSCC’s account balances as of T-1 day-end.

    
    
16. What would be the trading, clearing and settlement arrangements for SSE and SZSE Securities when a Hong Kong holiday falls on a Mainland business day?
    EPs can only trade SSE and SZSE Securities on a Hong Kong business day, and only if both the markets in Hong Kong and Mainland are open for trading (T-day) and banking services are available in the Hong Kong and Mainland markets on the corresponding money settlement days (T+1). This arrangement is essential in ensuring that proper banking support is available for CCCPs to settle their money obligations for Northbound trades on T+1.
    
    
17. What will be the trading arrangement for SSE and SZSE Securities under severe weather conditions, for example, when typhoon signal number 8 or above and/or black rainstorm warning is issued in Hong Kong?
    The trading arrangement under severe weather conditions will be as follows:
    

    Scenarios	Northbound trading of SSE/SZSE Securities	Money Settlement (for T-1 position) (for T-1 position)	Securities Settlement (for T position)
    1. T8/Black rainstorm issued before Hong Kong market opens {i.e. 9:00 a.m.} and discontinued after 12:00 noon	Not open	No	N/A
    2. T8 issued between 9:00 a.m. and 9:15 a.m.	Not open	Yes
    3. T8 issued after SSE/SZSE market opens {i.e. 9:15 a.m.}	Trading will continue for 15 minutes after T8 issuance, thereafter, only order cancellation is allowed till SSE/ SZSE market close*	Yes	Yes
    4. Black rainstorm issued after HK market opens {i.e. 9:00 a.m.}	Trading continues as normal	Yes	Yes
    5. T8/Black rainstorm discontinued at or before 12:00 noon	Trading resumes after 2 hours	Postpone to 3 p.m.	Yes

    
    * BOCOM will cancel trading orders and inform the customer after T8 issued.
    
    

    "Clearing, Settlement and Risk Management Arrangement" Frequently asked Questions and Answers
    
    
18. What is the settlement cycle for SSE and SZSE Securities trades?
    SSE Securities trades and SZSE Securities trades follow the settlement cycles of the Shanghai and Shenzhen securities markets respectively, where stock will be settled on T-day, and money will be settled on T+1 for both markets.
    
    
19. How are Connect Securities under Shanghai and Shenzhen Connect held for Hong Kong and overseas investors? Can investors hold Connect Securities acquired through Shanghai and Shenzhen Connect in physical form?
    Since SSE and SZSE Securities are issued in scripless form, physical deposits and withdrawals of SSE and SZSE Securities into/from the CCASS Depository are not available.
    As explained above, Hong Kong and overseas investors can only hold SSE and SZSE Securities through their brokers/custodians. Their ownership of such is reflected in their brokers/custodians’ own records such as client statements.
    
    
20. Can Hong Kong and overseas investors attend the shareholder meetings of issuers of Connect Securities in person or appoint more than one person to attend and act as proxy at the meetings on their behalf?
    As HKSCC is the shareholder on record of SSE/SZSE listed companies (in its capacity as nominee holder for Hong Kong and overseas investors), It can attend shareholders’ meeting as shareholder. Where the articles of association of a listed company do not prohibit the appointment of proxy/multiple proxies by its shareholder, HKSCC will make arrangements to appoint one or more investors as its proxies or representatives to attend shareholders’ meetings when instructed. Further, investors (with holdings reaching the thresholds required under Mainland regulations and the articles of associations of listed companies) may, through their CCASS Participants, pass on proposed resolutions to listed companies via HKSCC under the CCASS Rules. HKSCC will pass on such resolutions to the companies as shareholder on record if so permitted under the relevant regulations and requirements.
    
    

    "Market Information" Frequently asked Questions and Answers
    
    
21. Can Hong Kong and overseas investors through CCASS Participants request to receive hard copies of corporate communications such as circulars, annual reports from SSE/SZSE-listed companies?
    No. Hong Kong and overseas investors should follow the Mainland market practice and refer to the websites of SSE (http://www.sse.com.cn/disclosure/listedinfo/announcement/) and SZSE (http://disclosure.szse.cn/m/drgg.htm) and officially appointed newspapers and website (i.e. Shanghai Securities News , Securities Times, China Securities Journal, Securities Daily and www.cninfo.com.cn) for the corporate announcements made by SSE/SZSE-listed companies. CCASS Participants are reminded that Issuers listed on the ChiNext Market are required to publish certain corporate announcements on their corporate websites and the officially appointed websites only. Corporate announcements posted through these channels are only available in Simplified Chinese.
    
    
22. What are the fees and taxes applicable to the trading and clearing of A shares under Northbound Trading?
    For the details of relevant fees and taxes, please refer to our Bank’s Charges of Securities Trading Services. To know more the concrete arrangements of Shanghai/Shenzhen Connect, please refer to HKEx’s website.