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    Background Introduction

    • Hong Kong Exchanges and Clearing Limited (HKEX), Shanghai Stock Exchange (SSE), Hong Kong Securities Clearing Company Limited (HKSCC) and China Securities Depository and Clearing Corporation Limited (ChinaClear) successfully launched the Shanghai-Hong Kong Stock Connect on 17 Nov 2014, which marked the establishment of mutual order-routing connectivity and mutual stock market access between Mainland China and Hong Kong. Respective investors of Mainland China and Hong Kong market are able to trade shares listed on the other's market.

    • Shanghai / Shenzhen Connect refer to the arrangement that Hong Kong and overseas investors trade selective stocks listed on the SSE/SZSE market respectively under the framework of Shanghai-Hong Kong Stock Connect / Shenzhen-Hong Kong Stock Connect.

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    Quota

    • Hong Kong and overseas investors are able to trade selective stocks listed on the SSE/SZSE market (Northbound trading, please refer to trading arrangement mentioned below for Eligible Stocks) are subject to a separate set of Daily Quota, which is monitored by Stock Exchange of Hong Kong (SEHK), SSE and SZSE respectively.

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

    • 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.

    • 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.

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    Major Trading Arrangement of Northbound Trading (Shanghai Connect and Shenzhen Connect)#

    Item Shanghai Connect Shenzhen Connect
    Order Type Limit orders only
    Eligible Securities For details, please refer to the relevant information in HKEx's webpage.
    Stock Code Must be 6 digits
    Trading currency RMB
    Lot size 100 shares
    Maximum order size 1 million shares
    Tick size Stocks: RMB 0.01
    ETFs: RMB 0.001
    Price limit ±10% of previous closing price
    (±20% for some ETFs specified by SSE and SZSE)
    (±5% of previous closing price for stocks under special treatment
    (ie ST and *ST stocks) under risk alert)
    Day (Turnaround) Trading Day trading is not allowed
    buying SSE and SZSE Securities on T-day can only sell the shares on and after
    T+1
    Settlement cycle Securities: settled on T day
    Money: settled on T+1 day

    Detailed trading arrangement please refer to HKEx 's website

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    Trading Hours

    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.

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    Fees and levies

    For the details about the commission, levies and other fees, please refer to our Bank’s Charges of Securities Trading Services.


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    Disclosure Obligations

    • 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.

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    Foreign Shareholding Restrictions

    • Under current Mainland rules, unless otherwise permitted by the relevant strategic investor regulations, a single foreign investor's (i.e. QFII and RQFII) shareholding in a listed company 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 Securities purchased through Shanghai Connect and SZSE Securities purchased through Shenzhen Connect will be considered in totality with those purchased by 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 SEHK Participant 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 SEHK for a forced-sale exemption.

    • SEHK Participants should monitor their clients' shareholdings in SSE Securities and SZSE Securities and remind their clients to comply with the 10% single foreign investor's restriction policy, and alert them of the possibility of the forced-sale arrangement.

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    Source: HKEX

    Please refer to "FAQ" for more information on Shanghai / Shenzhen Connect. To know the concrete arrangements of Shanghai / Shenzhen Connect, please refer to HKEx's website.

    Please contact our Bank's staff for any enquiries on BOCOM Shanghai and Shenzhen Stock Connect Northbound Trading service.

    Risk Disclosure Statement
    The above information is for reference only and is neither a recommendation, an offer, nor a solicitation for any investment. The prices of securities fluctuate, sometimes dramatically. The price of a security may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling securities.


    Risk Disclosure Statements for RMB

    1. RMB is subject to exchange rate risk and is currently not freely convertible. Conversion of RMB or provision of RMB services through banks in Hong Kong is subject to relevant RMB policies, other restriction and regulatory requirements in Hong Kong. No prior notice will be given for any changes which may be made from time to time.
    2. RMB products are subject to exchange rate fluctuations which may involve risk. The fluctuation in the exchange rate of RMB may result in a gain or loss in the event that customer converts RMB into Hong Kong dollar or other foreign currencies.


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