[Editor's note] On April 10, 2014, the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission issued the Joint Announcement, which approved the Shanghai Stock Exchange (hereinafter referred to as the “Shanghai Stock Exchange”) and the Hong Kong Stock Exchange. (hereinafter referred to as the Hong Kong Stock Exchange), China Securities Depository and Clearing Co., Ltd. (hereinafter referred to as China Settlement), Hong Kong Securities Clearing Company Limited (hereinafter referred to as Hong Kong Clearing) to carry out the pilot of the Shanghai-Hong Kong stock market trading interconnection mechanism (hereinafter referred to as Shanghai-Hong Kong Stock Connect) ). Shanghai-Hong Kong Stock Connect is like an express train, allowing mainland investors to conveniently invest in Hong Kong stocks. This article will answer all the questions about the Shanghai-Hong Kong Stock Connect that investors care about.。
1.What is the benefit of the launch of Shanghai-Hong Kong Stock Connect to our investors?
For mainland investors, the launch of Shanghai-Hong Kong Stock Connect has many implications.
First, Shanghai-Hong Kong Stock Connect expands the scope of investor asset allocation. Mainland investors have Shanghai securities accounts. In addition to investing in the A-share market in the future, they can also invest in specific Hong Kong stocks very conveniently, and their asset allocation has new options.
Secondly, Shanghai-Hong Kong Stock Connect is conducive to promoting the maturity of investment ideas of mainland investors. The Hong Kong stock market is more mature and international than the mainland market. If mainland investors participate in Hong Kong stock investment, their investment behavior, investment philosophy and investment orientation will also change by understanding the rules and systems of the Hong Kong market. This change may also be passed on to its investment in the A-share market, which will benefit the development of the A-share market.
Once again, Shanghai-Hong Kong Stock Connect will help improve the investor structure in the A-share market and may attract more overseas funds to the mainland market. After the opening of the Shanghai-Hong Kong Stock Connect, there will be Hong Kong market investors joining the ranks of A-share investors. A large number of investors in the Hong Kong market are institutional investors. Pursuing long-term investment income, paying more attention to and actively participating in corporate governance will require reasonable and sustained dividend income, which will promote the corporate governance of A-share listed companies to a certain extent. Improving the relationship with investors will help the company to continuously improve investor returns and optimize investor returns.
In general, Shanghai-Hong Kong Stock Connect is an important part of China's capital market opening up, which is conducive to strengthening the capital market linkage between the two places, and is conducive to the two-way opening of the capital market and the internationalization of the RMB.
2.Can investors buy a ship by investing in Hong Kong stocks through Shanghai-Hong Kong Stock Connect?
"Wars", also known as "warrants", is a common derivative of the Hong Kong market. Then, can investors buy a ship through the Hong Kong Stock Connect?
The H-shares of the Hang Seng Composite Large-Cap Index, the Hang Seng Composite Mid-Cap Index, and the issuers of the issuers who are not listed in the aforementioned index stocks and listed on the Shanghai Stock Exchange and the Stock Exchange, among the above-mentioned index constituents, are included in the Hong Kong Stock Connect. The internal issuer is also excluded from the H shares listed on the mainland stock exchanges. In addition, if the shares are traded in Hong Kong, the shares quoted in the RMB are not within the scope of the Hong Kong Stock Connect. With the adjustment of the above index stocks or the changes in the company's listing situation, the investment targets of Hong Kong Stock Connect will be adjusted according to the actual situation.
In other words, mainland investors can only participate in the spot trading of Hong Kong stocks within the specified range through the Hong Kong stock exchange investment in Hong Kong stocks. They cannot trade derivatives in the Hong Kong market, nor can they conduct margin trading. Therefore, mainland investors cannot buy a warrant through the Hong Kong stock market.
3.If investors invest through Shanghai-Hong Kong Stock Connect, is there a quota limit?
According to the "Joint Announcement", in the initial stage of the Shanghai-Hong Kong Stock Connect pilot, the total amount of RMB cross-border investment quotas will be managed, and daily quotas will be set to implement real-time monitoring. Among them, the total amount of Shanghai Stock Connect is 300 billion yuan, the daily quota is 13 billion yuan; the total amount of Hong Kong stocks is 250 billion yuan, and the daily quota is 10.5 billion yuan. Both parties may adjust the investment quota according to the pilot situation.
4.What are the arrangements for stock trading in Hong Kong that are different from A-shares?
For investors who plan to invest in the Hong Kong market through Hong Kong Stock Connect in the future, it is first necessary to understand the trading system of the Hong Kong market. There are many different places in the trading of Hong Kong stocks and A shares. Investors are also invited to pay special attention. Next, we will introduce you to some of the differences. However, before implementing the transaction, investors still need to carefully read the rules and related announcements issued by the two markets on the Hong Kong Stock Connect business.
The trading system is different. Unlike the mainland market, Hong Kong implements the T+0 revolving trading system, which means that the securities bought on the same day can be sold on the same day.
The price limit system is different. The mainland market has a 10% price limit (risk warning stocks are limited to 5%), and Hong Kong stocks do not have a price limit.
The quotes are displayed differently. The Hong Kong stock market is the same as most overseas securities markets. When stocks rise, the color displayed on the stock quote screen is green, and when it falls, it is red.
The number of hands is different. In the mainland market, each stock trading unit is unified into 100 shares. In the Hong Kong market, different stocks can set up different numbers of each trading unit, some are set to 100 shares per lot, some are set to 1000 shares per lot, and some are Investors should pay special attention to 2000 shares.
The securities code is compiled differently. The stock code of the mainland stock market consists of 6 digits, while the stock code of the Hong Kong stock market consists of 5 digits. In addition, the Hong Kong stock market did not have the risk warning mark such as ST and *ST in front of the stock short name.
The trading currency is different. The trading currency of the Hong Kong stock market is mainly Hong Kong dollars, while the trading currency of the A-share securities market is Renminbi. In the arrangement of the Hong Kong Stock Connect, mainland investors traded Hong Kong stocks in stock, quoted in Hong Kong dollars, but in RMB as the payment currency.
The trading day is different. Due to different holiday arrangements, the trading days of the Hong Kong market and the Mainland market are not exactly the same. For example, the annual Hong Kong market will be closed for Easter, Christmas, etc. During the Spring Festival, the Mainland generally has 7 days off, while Hong Kong only takes 4 days and a half. In principle, the Shanghai-Hong Kong Stock Connect trading system is only open to investors when both Shanghai and Hong Kong are trading days and can meet settlement arrangements.
In the follow-up Voice of Investors, we will also give you a detailed introduction to the differences between the trading systems of the two places and the special arrangements for the Hong Kong Stock Connect trading mechanism.
5.I plan to invest in Hong Kong stocks through Shanghai-Hong Kong Stock Connect in the future. I want to know some Hong Kong stocks in advance, and once I open, I can start trading. Then, through what channels can I obtain information such as the annual report of listed companies in Hong Kong?
Like the mainland market, Hong Kong listed companies and related information disclosure obligors should also fulfill their information disclosure obligations in accordance with the law. Investors can visit the Hong Kong Stock Exchange's "Disclosure" website (http://sc.hkexnews.hk/TuniS/www.hkexnews.hk/index_e.htm) to obtain information on listed companies, or through the official website of listed companies, etc. Ways to get. Investors can obtain the official website address of the listed company by checking the "Online Contact" section of the Hong Kong Stock Exchange website.
The Hong Kong Stock Exchange "Disclosure" provides a variety of search queries. Investors can select “Advanced Search” from the “Listed Companies Announcement” section of the “Disclosure” website, and enter the stock code or stock short name in the “Existing Listed Securities” column (currently only English or Traditional Chinese characters can be recognized). By selecting "Announcements and Notices" and "Financial Information" in the "Title Category", you can view the date of the company's board meeting, the results of the announcement, and the details of the dividend distribution.
In addition, investors can search for the announcements and dividend payouts previously issued by listed companies through the “Listed Companies” under the “China Securities Market Page” section of the website of the Hong Kong Stock Exchange.
It is worth noting that not all individual investors can participate in the Shanghai-Hong Kong Stock Connect transaction immediately. According to the Joint Announcement, in the initial stage of the pilot, the Hong Kong Securities Regulatory Commission required domestic investors to participate in the Hong Kong Stock Connect to be limited to institutional investors and individual investors whose securities account and fund account balances totaled not less than RMB 500,000.
Disclaimer：
This article is taken from the SSE Investor Education website (http://edu.sse.com.cn). The information contained herein does not constitute any investment advice and investors should not substitute such information for their independent judgment or make decisions based solely on such information. The Shanghai Stock Exchange declares that the information published is intended to be accurate and reliable, but does not guarantee the accuracy or completeness of such information, and does not assume any responsibility for the losses caused or likely to be caused by the use of such information.