Shanghai-HK Stock Connect / Shenzhen-HK Stock Connect

Holiday arrangement in Shanghai and Shenzhen Northbound Trading

The following table illustrates the holiday arrangement of Shanghai and Shenzhen Northbound Trading:

^ Friday is a public holiday in Hong Kong and money settlement will not be executed by CCASS on that day. Hence, Shanghai–Hong Kong Stock Connect and Shenzhen–Hong Kong Stock Connect will not be open for trading SSE or SZSE securities on Thursday.

^# There will not be any money settlement for Shanghai and Shenzhen Northbound trades on Tuesday as Monday is not open for Shanghai and Shenzhen Northbound Trading. However, as CCASS is open for business on Tuesday, it will still process money transactions in relation to nominee’s activities with respect to SSE and SZSE securities, If any.

Remarks: if a Shanghai and Shenzhen Northbound trading day is a half trading day in Hong Kong market, Shanghai and Shenzhen Northbound trading will continue until the close of the Shanghai and Shenzhen stock market.

Contingency arrangement under severe weather conditions in Shanghai and Shenzhen Northbound Trading

Under the below situations purchase orders of SSE or SZSE securities will be suspended

1.the SSE or SZSE security subsequently ceases to be a constituent stock of the relevant indices;

2.the SSE or SZSE security is subsequently under “risk alert”;

3.the corresponding H share of the SSE or SZSE security subsequently ceases to be traded on SEHK;

4.the SZSE security is, based on any subsequent periodic review, determined to have a market capitalization of less than RMB 6 billion;

5.Aggregate foreign shareholding on SSE or SZSE securities reaches 28%;

6.Daily Quota Balance drops to zero or below

ATTENTION:
After order placement in the Bank, customers are advised to check the order status from time to time via our various channels (including but not limited to Online Banking or Mobile Banking, etc) for the latest status and execution result of the order instruction placed to our Bank. Please be reminded that our acceptance to customer’s order placement does not mean that the order can be / will be executed and/or accepted by the Shanghai Stock Exchange/Shenzhen Stock Exchange.

Price Limit

For SSE and SZSE securities, there is a general price limit of a ±10% (and a ±5% for stocks under special treatment (i.e. ST and *ST stocks) in the risk alert board in SSE and SZSE) based on previous closing price. Any orders with price beyond the price limit will be rejected by SSE or SZSE. Shanghai and Shenzhen Northbound Trading is subject to the same rule.

Dynamic Price limit

To prevent mischievous behavior towards the use of the Northbound quota, SEHK has put in place a dynamic price checking for buy orders. 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.
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 Call Auction 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 be applied throughout the trading day, from the 5-minute input period before the start of Opening Call Auction until the end of the afternoon Continuous Auction (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.

Restriction on share holding for foreign investor

Under the current PRC rules, foreign investors who trade SSE or SZSE securities are required to comply with the following foreign shareholding restrictions. Northbound Trading of SSE / SZSE securities are subject to this restriction :
i. Aggregate foreign investors’ shareholding in an SSE or SZSE security cannot exceed 30% of the total issued shares
ii. Single foreign investors’ shareholding in an SSE or SZSE security cannot exceed 10% of total issued shares
Once the SSE / SZSE informs SEHK that the aggregate foreign shareholding in an SSE or SZSE security reaches 28%, HKEx will stop accepting further buy orders on that SSE or SZSE security, until shareholding lowers to 26%. If the aggregate foreign shareholding exceeds 30% and the excess is due to Shanghai / Shenzhen Northbound Trading, HKEx will identify the relevant exchange participant (EP) and require it to follow the force-sell requirements. Investor may suffer a loss due to this force-sell arrangement.

Disclosure obligations

Under the current PRC rules, when an investor holds or controls up to 5% of the issued shares of an SSE or SZSE listed company, the investor is required to disclose his /her interest within three working days. Such investor may not buy or sell the shares in the listed issuer within the three-day period. For such investor, every time when there is an increase or decrease in his shareholding by 5%, he / she is required to make a disclosure 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 listed issuer. If a change in shareholding of the investor is less than 5% but results in the shares held or controlled by him / her falling below 5% of the issued shares in the listed issuer, the investor is required to disclose the information within three working days.

Investors are advised to obtain appropriate professional legal and financial advice if there is any query on disclosure obligations.