>>>Hong Kong Stock Connect Basic Trading Rules and Differences between Shenzhen and Hong Kong
Investors opened the trading authority of Hong Kong Stock Connect ("Hong Kong Stock Connect") under Shenzhen-Hong Kong Stock Connect, and officially entered the actual stage of the Hong Kong Stock Connect. There are many differences in the market environment familiar to the Hong Kong stock market and mainland investors. When entering the complex overseas securities market, investors need to be familiar with the “battlefield”, understand the rules and predict risks in advance, so that they can target their investment decisions reasonably.
I. Highlights of the basic trading rules of the Hong Kong Stock Connect
Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect adopt a “dual-channel” independent operation mechanism. The stocks in Hong Kong Stock Connect under Shenzhen-Hong Kong Stock Connect and Hong Kong Stock Connect under Shanghai-Hong Kong Stock Connect cannot be cross-sold, but the Shanghai and Shenzhen Stock Exchange accounts sell Hong Kong stocks. Funds can be used interchangeably.
Hong Kong stocks trading, traded in Hong Kong dollars, cleared and settled in RMB.
When mainland investors participate in the Hong Kong Stock Connect trading, only two types of orders can be used: the “bidding limit order” should be used in the bidding period; the “enhanced limit order” should be entrusted in the continuous trading period.
Investors participating in the Hong Kong Stock Connect transaction declaration must enter the securities code, the purchase price, the number of purchases and other parameters. The price declared by the investor follows the local quotation rules in Hong Kong. In the Hong Kong stock market, the opening quotation rules are different from the quotation rules for continuous trading hours, but the order price entered by investors during these two periods cannot be greater than the closing price of the previous day or If the price is nine times or more and less than one-ninth or less, each order shall not exceed 3,000 lots. For details of the specific quotation rules, investors can log on to the Stock Exchange's website and refer to the “Exchange Rules” in the “Transaction Rules” option under the “Rules and Regulations” section.
In addition, the Hong Kong Stock Connect investors can only cancel the order at the corresponding time and can not modify the order, the withdrawal time is 9:00-9:15; 9:30-12:00; 12:30-16:00; 16:01 -16:06.
[Number of tradable shares]
The balance of Hong Kong stocks in the investor's securities account is divided into tradable quantity, end-of-day holding balance, and unfinished settlement quantity. If the freezing occurs, the frozen quantity is also included. The formula for calculating the tradable quantity of Hong Kong stock exchange investors is:
Tradeable Quantity = End of Day Hold Balance + Unfinished Settlement Quantity - Freeze Quantity
When the investor net purchase of Hong Kong stocks, the amount of unfinished settlement is positive; when the investor sells Hong Kong stocks, the amount of unfinished delivery is negative.
[shredded stock trading]
Less than one-handed “shredded shares” in the hands of mainland investors need to be traded through the “short stock/special trading unit market” of the Stock Exchange trading system. Hong Kong stock exchange investors can only sell odd stocks in the odd stock market and cannot buy.
2. Differences in trading systems between Shenzhen and Hong Kong
There are many differences in the trading system between the Shenzhen and Hong Kong stock markets. It is necessary for investors to do their homework in advance and distinguish the differences in order to be able to invest in Hong Kong stocks. In order to facilitate investors' understanding, we have sorted out some of the major differences between Shenzhen and Hong Kong for your reference:
First, the transaction settlement mechanism is different. Unlike the T+1 trading system in the mainland A-share market, Hong Kong stocks implement T+0 revolving trading and T+2 settlement system, which means that investors can buy Hong Kong stocks on the same day and sell at T+2. The right to the securities is still available until the settlement is completed on the day.
Second, the price limit is different. Stocks in the Shenzhen A-share market,Fund tradingThere is a 10% price limit, ST and *ST and other special stocks are subject to a 5% price limit; Hong Kong stock market does not set a price limit, but the Stock Exchange to prevent individual stock prices in the short term Fluctuation, the market volatility adjustment mechanism was launched on August 22, 2016, that is, some stocks that are subject to the market volatility adjustment mechanism will trigger a 5-minute cooling-off period when the price fluctuates sharply during the monitoring period. During the cooling-off period, the trading price is subject to The limit of the upper and lower 10% range of the last transaction price 5 minutes before the trigger.
Third, the trading unit regulations are different. The Shenzhen A-share bidding transaction should buy 100 shares or an integral multiple thereof; there is no uniform regulation for each “hand” number of Hong Kong stock transactions. The listed companies of Hong Kong stocks can set up different numbers of stock trading units per lot, which can be 100. 200, 1000 or 5000, etc.
Fourth, the minimum quotation unit is different. Shenzhen A shares are 0.01 yuan; and Hong Kong stocks with different prices, the minimum quotation unit is different, the higher the stock price, the larger the minimum quotation unit.
Fifth, the trading schedule is different. The trading hours of Shenzhen A shares are divided into: opening set auction time (9:15-9:25), continuous bidding period (9:30-11:30 and 13:00-14:57), closing set bidding period ( 14:57-15:00); Investors trading in Hong Kong stocks through stocks trading time should comply with the relevant provisions of the Stock Exchange, as follows: (attached)
Sixth is the special arrangement of "Half Day City". There is also a special "half-day market" in the Hong Kong stock market. That is, if Christmas Eve (December 24), New Year's Eve (December 31) and Lunar New Year's Eve (the last day of Lunar Calendar) are trading days, the Hong Kong market is only There are half-day transactions. If the day is a Hong Kong stock exchange trading day, then the Hong Kong stock exchange trading on that day will only be traded for half a day.
Seven is the quotation shows different. When the stock price of the Hong Kong stock market rises, the color displayed on the stock quote screen is green, and when it falls, it is red, which is different from the mainland stock market. However, the market trend color provided by different market software vendors can be re-set. When using the market software, investors should carefully check the software parameter settings to avoid the risk of inertia thinking.
Eight is the difference between risk warning and delisting system. Shenzhen A-shares have a warning sign before the stock abbreviation (for example, ST, *ST, etc.) to inform investors of the investment risk, and the delisting stocks are arranged for the delisting period. After the delisting, the stocks can still enter. The National Small and Medium Enterprise Share Transfer System is listed for trading; while the Stock Exchange adopts non-quantitative delisting standards and there are no delisting risk warnings, delisting and finishing arrangements, etc., once the Hong Kong Stock Connect shares are delisted from the Stock Exchange market, there is no relevant follow-up transaction. Arrangement, investors will face the risk of not being able to continue to buy and sell related stocks through Hong Kong Stock Connect.
For Hong Kong stock exchange investors, we should seriously understand the differences between the Shenzhen and Hong Kong markets. This is both a real weapon and a defensive shield, so that you can have a good grasp in the Hong Kong stock market.
>>>Notice on Amending the "Shanghai Stock Exchange Shanghai-Hong Kong Stock Connect Pilot Measures"
According to the relevant arrangements for the adjustment of the trading mechanism such as the closing bidding transaction by the Stock Exchange of Hong Kong Limited (hereinafter referred to as the Stock Exchange), the Shanghai Stock Exchange has approved the “Shanghai Stock Exchange Shanghai-Hong Kong Stock Connect Pilot Measures” with the approval of the China Securities Regulatory Commission. Revised, the specific changes are as follows:
1. The first paragraph of Article 63 is amended as follows: “The trading day and trading hours of the Hong Kong Stock Connect are announced by the Stock Exchange Trading Company of the Stock Exchange on its designated website. The trading hours of each Hong Kong stock trading day include the pre-opening session and continuing trading. The time period and the closing bid trading period shall be carried out in accordance with the provisions of the Stock Exchange."
2. The second paragraph of Article 64 is amended as follows: “Investors participate in the automatic trading system trading of the Stock Exchange. They should use the bid limit order in the pre-opening period and the closing bid trading period of the Stock Exchange. The continuous trading session should be entrusted with an enhanced limit order."
3. The second paragraph of Article 81 is amended as follows: "When the daily quota is used in the continuous trading hours of the Stock Exchange or the closing trading session, the Stock Exchange Trading Company of the Stock Exchange ceases to accept the subsequent purchase declaration on the same day, but still accepts Selling declarations. If you stop accepting the purchase declaration during the above period, it will not be resumed on the same day, unless otherwise specified by the Exchange."
4. Article 112 (1) is amended to read: “At-auction limit order: refers to a pre-opening period and closing bidding transaction applicable to the Stock Exchange under the “Exchange Rules” of the Stock Exchange. Orders that can be traded at a specified price or a better price."
The above amendments will be implemented as of July 25, 2016.
It is hereby notified.
Shanghai Stock Exchange
July 18, 2016