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Shanghai-Hong Kong Stock Connect/Shenzhen-Hong Kong Stock Connect

Hong Kong investors invest in A shares

As a leading expert in RMB and cross-border services, Nanyang Commercial Bank (NCB) provides China A Shares Trading Services for you to capture investment opportunities

For the trading day arrangement of Northbound Trading, please refer to the “Trading calendar for Shanghai and Shenzhen Connect ” released by the Hong Kong Exchanges and Clearing Limited.

Convenient securities trading services

  • Trade China A shares and Hong Kong stocks through one securities account
  • Enjoy greater flexibility in funds with China A shares Margin Service . We offer extra investment capital of up to 70% of the prevailing market value of stocks.
  • Trade China A shares via Family Securities Accounts to set family’s financial goal
  • Trade China A shares via Internet Banking, Mobile Banking or manned hotline anytime and anywhere

Preferential fees

  • Under the Securities Club, the higher the accumulated securities transaction amount or the Investment Assets Value held with NCB, the lower the service fees.
  • Stock Custodian fees will be charged only once even if you hold Hong Kong stocks and China A shares in the same securities account.
  • There is no additional service fee for trading China A shares.

Value-added services

  • You can access and download daily e-Statements of the last 90 days and monthly e-Statements of the last 13 months anytime via Internet Banking. Also, stock trading records of Hong Kong stocks and China A shares are separately displayed on the same statement for easy reference
  • You can receive important alert messages such as confirmation of order status, corporate action, etc. via SMS or email
  • Enjoy comprehensive nominee services including stock custody, collection of dividends and bonus shares, and corporate actions handling (such as right issues).
  • Strong RMB services such as exchange, deposits, etc.

Comprehensive Stock Information

A shares information: unlimited free real-time Shanghai A shares and Shenzhen A shares stock quotes and market news.

Comparison between trading China A shares and Hong Kong stocks in Hong Kong.

Investing in China A shares is different compared with investing in Hong Kong stocks. Investors should get prepared before conducting transactions.

Trading China A shares in Hong Kong Trading Hong Kong Stocks in Hong Kong
Stocks available for trading Shanghai Northbound Trading
– Constituent stocks of the
SSE 180 Index and 380 Index
– A shares listed on both Hong Kong
Exchanges and Clearing Limited
(‘HKEx’)and Shanghai Stock Exchange (‘SSE’)
Shenzhen Northbound Trading
– Constituent stocks of the
SZSE Component Index and the SZSE
Small/Mid Cap Innovation Index
with a market capitalization of
not less than RMB 6 billion
– A shares listed on both Hong Kong
Exchanges and Clearing Limited
(‘HKEx’)and Shenzhen Stock Exchange (‘SZSE’)
(excluding: A shares on the risk
alert board and A shares not traded in RMB)
All stocks listed on the HKEx
Quota Daily Quota for each market: RMB 13 billion No limit
Stock Code 6 digits
– SSE Securities: First 2 digits will be “60”
– SZSE Securities: First 2 digits will be “00”or”30″
5 digits
Investor Eligibility Shanghai Northbound Trading:
Nil
Shenzhen Northbound Trading:
ChiNext board : limited to institutional professional
investors in the initial stage
Nil
Settlement currency RMB HKD
Board lot size 100 shares per each board lot Depends on the stock
Price limit Order price cannot exceed +/-10%
of the previous closing price
No limit
Tick size Flat fee of RMB 0.01 Vary from HK$0.001 to HK$5,
depending on the stock price
Trading hours Shanghai Northbound Trading
Call Auction session: 09:15-09:25
Morning session: 09:30-11:30
Afternoon session: 13:00-15:00
Shenzhen Northbound Trading
Call Auction session: 09:15-09:25
Morning session: 09:30-11:30
Afternoon session: 13:00 – 14:57
Closing Call Auction:14:57 – 15:00
Auction session: 09:00-09:30
Morning session: 09:30-12:00
Afternoon session: 13:00-16:00
Closing Auction Session:
16:00-16:10
(16:08-16:10 random closing)
Trading days All business days on which both
markets are open for trading and
banking services are available in
both markets on the
corresponding money settlement
days
All HKEx trading days
Clearing and settlement Stocks clearing: T day
Funds settlement: T+1 day
Stocks clearing and funds
settlement: T+2 days
Day trading Not allowed. Stocks purchased
on T day can only be sold on or
after T+1 day
Allowed
Fees and tax – Handling Fee (charged by
SSE / SZSE): 0.00487% of the
transaction amount
– Securities Management Fee
(charged by CSRC)
: 0.002% of the transaction
– Transfer Fee (charged by
ChinaClear):
0.001% of the transaction amount
Transfer Fee (charged by
HKSCC): 0.002% of the transaction amount
– Stamp Duty (charged by SAT): 0.1%
of the transaction amount
(payable by the selling party only)
– Transaction Levy (charged by SFC) : 0.0027% of the
transaction amount
– Trading Fee (charged by HKEx):0.005% of the transaction amount
– Stamp Duty (charged by HKSAR
Government): 0.13% of the
transaction amount
– Financial Reporting Council (FRC)
Transaction Levy: 0.00015% of the transaction amount
Stock Custodian In scripless form, physical withdrawal is not allowed. For most of the stocks, physical withdrawal is allowed.

Source of information related to the “Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect “: HKEx, May 2017

Mainland investors invest in Hong Kong stocks

Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect provide one more channel for Mainland investors to invest in Hong Kong stock market. Through the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, Mainland investors who meet the minimum asset requirement are eligible to invest in designated Hong Kong stocks

NCB Hong Kong Stock Trading Service

NCB provides all-rounded Hong Kong stock trading service to help you grasp investment opportunities in Hong Kong and Mainland, bringing you added convenience in financial management across the border. Through NCB you can:

  • Trade all listed securities on HKEx, included Warrants, Callable Bull/Bear Contracts, ETF, etc.
  • Place trading instructions through our 24-hour automated trading channels include Internet Banking, Mobile Banking and Automated Stock Trading Hotline
  • Conduct margin trading
  • Subscribe IPO shares and IPO Financing (subject to the provision of each IPO)

Apart from the Hong Kong stock trading service, NCB provides comprehensive investment products, including investment funds, structure products, etc., helping you to manage funds flexibly. For details, please click here.

For further information, please visit any of our branches or call our Customer Service Hotline +852 2622 2633.

Details

Investor Compensation Fund

Effective 1 Jan 2020, the SFC investor compensation regime has been expanded to cover Northbound trading through the China Connect Service. The collection of Investor Compensation Levy is currently suspended and its reinstatement (if needed) will take effect upon announcement by the SFC.

Source: HKEx

The following risk disclosure statements cannot disclose all the risks involved. You should undertake your own research and study before your trade or invest. You should carefully consider whether trading or investment is suitable in light of your own financial position and investment objective. You are advised to seek independent financial and professional advice before you trade or invest. You should seek independent professional advice if you are uncertain of or have not understood any aspect of the following risk disclosure statements or the nature and risks involved in trading or investment.

Risk Disclosure of Securities Trading
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 of Securities Margin Trading
The risk of loss in financing a transaction by deposit of collateral is significant. You may sustain losses in excess of your cash and any other assets deposited as collateral with the licensed or registered person. Market conditions may make it impossible to execute contingent orders, such as “stop-loss” or “stop-limit” orders. You may be called upon at short notice to make additional margin or interest payments. If the required margin or interest payments are not made within the prescribed time, your collateral may be liquidated without your consent. Moreover, you will remain liable for any resulting deficit in your account and interest charged on your account. You should therefore carefully consider whether such a financing arrangement is suitable in light of your own financial position and investment objectives.

You are advised to understand the relevant details, charges and important notes before investing in China A shares. Details.

Conversion Limitation Risk of RMB (Only applicable to Individual Investors)
RMB investments are subject to exchange rate fluctuations which may provide both opportunities and risks. The fluctuation in the exchange rate of RMB may result in losses in the event that the customer converts RMB into HKD or other foreign currencies. RMB is currently not fully freely convertible. Individual customers can be offered CNH rate to conduct conversion of RMB through bank accounts and may occasionally not be able to do so fully or immediately, for which it is subject to the RMB position of the banks and their commercial decisions at that moment. Customers should consider and understand the possible impact on their liquidity of RMB funds in advance.

Conversion Limitation Risk of RMB (Only applicable to Corporate Customers)
RMB investments are subject to exchange rate fluctuations which may provide both opportunities and risks. The fluctuation in the exchange rate of RMB may result in losses in the event that the customer converts RMB into HKD or other foreign currencies. RMB is currently not fully freely convertible. Corporate customers that intend to conduct conversion of RMB through banks may occasionally not be able to do so fully or immediately, for which it is subject to the RMB position of the banks and their commercial decisions at that moment. Customers should consider and understand the possible impact on their liquidity of RMB funds in advance.