Shanghai-Hong Kong Stock Connect/Shenzhen-Hong Kong Stock Connect
Shanghai-Hong Kong Stock Connect/Shenzhen-Hong Kong Stock Connect
Under Shanghai-Hong Kong Stock Connect/Shenzhen-Hong Kong Stock Connect, mutual order-routing connectivity and related technical infrastructure (Trading Links) will be established to enable investors of their respective market to trade designated equity securities listed in the other’s market.
Through the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, investors can:
‧Participate in growth of the most exciting emerging economy - China
‧Diversify investment portfolio with shares from China market as the program covers a wide range of A shares
‧New opportunities to invest with RMB
‧No need to have an account in the Mainland
‧HKEx subsidiaries are responsible for trading, clearing and settlement. All fund transfers are in Hong Kong
Client may participate in Northbound Trading of Shanghai-Hong Kong Stock Connect/Shenzhen-Hong Kong Stock Connect through BOCI by simply using his/her existing trading account or open a new trading account. BOCI offers electronic trading platforms so that client can conveniently access and manage his/her account and trading activities. Margin financing service is also available to assist client in seizing every potential opportunity.
Shanghai-Hong Kong Stock Connect/Shenzhen-Hong Kong Connect Trading Overview
Shanghai Northbound Trading
Shenzhen Northbound Trading
All HK and overseas individual and institutional investors
HK and overseas individual and institutional investors,
*ChiNext participation limited to institutional professional investors (PI1) initially
All the constituent stocks of the SSE 180 Index and SSE 380 Index, A shares of SSE-SEHK A+H
Constituents of SZSE Component & SZSE Small/Mid Cap Innovation indexes with market capitalization of at least RMB 6 bn, and A shares of SZSE-SEHK A+H.
To facilitate Hong Kong and overseas investors trading in Shanghai Stock Exchange ("SSE")/Shenzhen Stock Exchange ("SZSE") Securities through Northbound trading, SEHK established SEHK Subsidiary in Shanghai and Shenzhen QianHai, and orders are routed through the subsidiaries set up by local exchanges to the opposite market.
The principal arrangements for Shenzhen-Hong Kong Stock Connect are made with reference to those under Shanghai-Hong Kong Stock Connect and by following the existing laws and regulations and operational models governing trading and clearing in each market.
Investor and Participant Eligibility
Hong Kong and overseas investors are allowed to trade SSE Securities through Shanghai-Hong Kong Stock Connect and to trade SZSE securities through Shenzhen-Hong Kong Stock Connect, but ChiNext participation is only limited to institutional professional investors (PI1) initially.
Investors to trade through Shanghai Northbound Connect will be able to include all the constituent stocks of the SSE 180 Index and SSE 380 Index, and all the SSE-listed A shares that are not included as constituent stocks of the relevant indices but which have corresponding H shares listed on SEHK, except shares under risk alert or delisting arrangement and shares which are not traded in RMB.
Investors to trade through Shenzhen Northbound Connect will be able to trade Constituents of SZSE Component & SZSE Small/Mid Cap Innovation indexes with market capitalization of at least RMB 6 billion, and SZSE-SEHK A+H shares, except shares under risk alert or delisting arrangement and shares which are not traded in RMB.
Shanghai NB Connect Daily Quota: RMB 52 billion
Shenzhen NB Connect Daily Quota: RMB 52 billion
Northbound trading will follow SSE/SZSE’s trading hours. However, SEHK will accept Northbound orders from Exchange Participants (“EP”) five minutes before the Mainland market session opens in the morning and in the afternoon.
Trading is conducted on Monday to Friday (exclude public holidays) at the following times:
SSE & SZSE Trading Hours
Time for EPs to input
Opening Call Auction
Continuous Auction (Morning)
Continuous Auction (Afternoon)
Closing Call Auction
● 09:20-09:25; 14:57-15:00: SSE/SZSE will not accept order cancellation;
● 09:10-09:15; 09:25-09:30; 12:55-13:00: Orders and order cancellations can be input into CSC but will not be processed by SZSE and SSE until their market open
● Orders that are not executed during the opening call auction session will automatically enter the continuous auction session
Investors will only be allowed to trade on the other market on days where both markets are open for trading, and banking services are available in both markets on the corresponding settlement days.
Open for Northbound Trading?
Money Settlement Day
HK market close
HK market close
SSE market close
Confirmed Order Cancellation
Different from SSE, order may be cancelled by SZSE trading system after it has been confirmed due to the unsuccessful order validation. An example of this is the order price exceeded the current price range. In this case, the order cancellation notification is sent back.
Trading Currency Hong Kong and overseas investors will trade and settle SSE/SZSE Securities in RMB only.
For Northbound trading, only limit orders (SSE/SZSE limit orders can be matched at the specified or better price) will be accepted for SSE/SZSE Securities throughout the day.
For SSE/SZSE 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.
Dynamic Price Checking
Buy orders with input prices lower than the current best bid (or last traded price in the absence of current best bid, or previous closing price in the absence of both current best bid and last traded price) beyond a prescribed percentage will be rejected by CSC.
During Opening Call Auction, the current bid (or previous closing price in the absence of the current bid) will be used for checking. During Closing CallAuction of SZSE, the current bid (or last traded price in the absence of the current bid) will be used for checking. Dynamic price checking will beapplied throughout the trading day, from the 5-minute input period before the start of Opening Call Auction until the end of the afternoon ContinuousAuction (until the end of the Closing Call Auction for SZSE). SEHK has set the dynamic price checking at 3% during the initial phase and may be adjusted from time to time subject to market conditions.
The stock codes of SSE/SZSE Securities are six digits and investors should use SSE/SZSE stock codes when placing orders.
Board Lot/Odd Lot
Buy orders: 100 shares
Sell orders: Odd lot trading is allowed, however, all odd lot must be sold in one order
Unlike Hong Kong, board lot and odd lot orders are both matched on the same platform on SSE/SZSE, and subject to the same share price.
Day (Turnaround) Trading/ Block Trades/ Manual Trades
Short Selling, Margin Financing and Stock Borrowing and Lending
Hong Kong and overseas investors are prohibited from naked short selling in SSE/SZSE Securities, and will not be allowed to participate in the Mainland’s margin trading and securities lending. BOCI currently does not offer Short Selling and Stock Borrowing and Lending Services in SSE/SZSE Securities.
When placing sell orders, investors must ensure they have sufficient shares in their accounts opened with the EP who acts as the selling broker. If the shares are kept in an account opened with another EP or a custodian, investors must first transfer the shares to the selling EP on T-1 in order to sell their shares on T day.
Severe Weather Conditions
Northbound Trading of SSE/SZSE Securities
(for T-1 position)
(for T position)
T8 / Black rainstorm issued before HK market
opens (ie.9:00 am) and
discontinued after 12:00
T8 issued between 9:00 am and 9:15 am
T8 issued after SSE market opens (i.e. 9:15 am)
Trading will continue for 15 minutes after T8 issuance, thereafter, only order cancellation is allowed till SSE market close
Black rainstorm issued after HK market opens (i.e. 9:00 am)
Trading continues as normal
2. Clearing, Settlement and Depository Arrangement
For Northbound trades, ChinaClear will act as the host Central Counterparty (CCP) and HKSCC will be a participant of ChinaClear. HKSCC will take up settlement obligations of its Clearing Participants (CPs) in respect of Northbound trades and settle the trades directly with ChinaClear in the Mainland.
Securities settlement for Northbound trades: T day
Money settlement for Northbound trades: T+1 day
Hong Kong and overseas investors who have acquired Connect Securities through Northbound trading should maintain the SSE and SZSE Securities with their brokers or custodians’ CCASS stock accounts.CCASS Participants can transfer Connect Securities between their CCASS stock accounts by way of Settlement Instructions (SIs).
For the avoidance of doubt, Investor Participants (IPs) accounts are not available for maintaining Connect Securities.
Since Connect Securities are issued in scripless form, physical deposits and withdrawals of SSE and SZSE Securities into/from the CCASS Depository will not be available.
Nominee Services and Corporate Actions
HKSCC will extend its existing nominee services to CCASS Participants/investors for their SSE/SZSE Securities held in CCASS as far as practicable.Upon receipt of the dividend amount on payment date, HKSCC will to the extent practicable arrange to distribute to the relevant CCASS Participants on the same day.
Shanghai-Hong Kong Stock Connect/Shenzhen-Hong Kong Stock Connect will not support initial public offering.
All approved corporate actions of SSE/SZSE Securities will be announced by the issuers through the SSE/SZSE website and four officially appointed newspapers (both the printed papers and their websites): the Shanghai Securities News, Securities Times, China Securities Journal and Securities Daily. Please note that SSE/SZSE-listed issuers will continue to publish corporate documents in Chinese only as their current practice, and English translation will not be available. Hong Kong and overseas investors can also visit HKEx website’s China Stock Markets Web for the company announcements of SSE/SZSE Securities issued on the previous trading day.
Northbound trades will be settled in RMB.
3. Fees and Levies
Click here to know the fees and levies related to Northbound trades under Shanghai-Hong Kong Stock Connect/Shenzhen-Hong Kong Connect.
4. China Connect Northbound Investor ID Model
China Connect Northbound Investor ID Model is implemented by HKEx on 26 September 2018.
Under the Northbound Investor ID Model, BOCI is required to assign a unique Investor ID number in a standard format, to each of the Northbound trading clients and provide relevant client data to HKEx, which will forward the information to Mainland exchanges directly or through ChinaClear.
Investor ID and Client Data are the two main components of the Northbound Investor ID Model, and are for regulators’ market surveillance only.
Personal Information Collection Statement
Individual clients intend to conduct Northbound trading can confirm the “Personal Information Collection Statement” via the SH-HK or SZ-HK section on BOCIS Online Trading Platform.
Upon receiving the duly signed Personal Information Collection Statement or the confirmation via online trading platform, BOCI will assign a unique Investor ID(s) to respective client’s personal account(s) and joint account(s) (if appropriate).
If a client has more than one account (including Joint Account) with BOCI, the client is only required to return one set of the Personal Information Collection Statement to us.
The HKEx and Mainland Exchanges or ChinaClear will consolidate and validate the Investor ID. Upon receiving the duly signed Personal Information Collection Statement or the confirmation via online trading platform. It will take at least 2 business days for BOCI to assign an Investor ID.
Clients must possess valid Investor ID to place China Connect securities buy orders. Without valid Investor ID, clients can only place China Connect securities sell orders but not buy orders via BOCI.
The Authorities and Exchanges will only accept Mainland Investors using the second generation Resident Identity Card with 18 digits ID number to apply for Investor ID. Mainland investors using the first generation Resident Identity Card with 15 digits ID number will not be accepted.