CHINA CONNECT

China Connect-Shanghai and Shenzhen Securities

China Connect-Shanghai and Shenzhen Securities

We are your go-to-bank for a comprehensive RMB solution!

Following the launch of the "Shanghai-Hong Kong Stock Connect" and "Shenzhen-Hong Kong Stock Connect", Citibank® now provides account opening and A-shares trading services to help clients capitalize on the new investment opportunities.

Act Now

Investment Service Enquiries hotline at (852) 2860 0183(852) 2860 0183

Investment Service Enquiries hotline at (852) 2860 0183(852) 2860 0183

Investment Service Enquiries hotline
at
(852) 2860 0183(852) 2860 0183

TRADING MECHANISM

Key details of "Shanghai-Hong Kong Stock Connect" and
"Shenzhen-Hong Kong Stock Connect"

Eligible investors
  • All Hong Kong and overseas retail and institutional investors
  • At the initial stage of “Shenzhen-Hong Kong Stock Connect”, shares listed on the ChiNext Board of SZSE will be limited to institutional professional investors*

*Citibank does not offer shares listed on the ChiNext Board of SZSE

Eligible stocks

"Shanghai-Hong Kong Stock Connect"

  • Constituent stocks of the SSE 180 index
  • Constituent stocks of the SSE 380 index
  • All the Shanghai Stock Exchange-listed A Shares which have corresponding H Shares listed on the Hong Kong Stock Exchange

"Shenzhen-Hong Kong Stock Connect"

  • Constituents of SZSE Component Index and SZSE Small/ Mid Cap Innovation Index, with market capitalization of at least RMB6 billion
  • All SZSE-listed shares of companies which have issued both A shares and H shares
Non-eligible stocks
  • Shares which are included in the "risk alert board"
  • Shares which are not traded in RMB
Trading Day Only operate on a day which is a trading day of both involved markets
Trading hours

"Shanghai-Hong Kong Stock Connect"

Trading hours of the Shanghai Stock Exchange:
Opening Call Auction 09:15 - 09:25
Continuous Auction (Morning) 09:30 - 11:30
Continuous Auction (Afternoon) 13:00 - 15:00
Allow order input 5 minutes prior to opening of each trading session

"Shenzhen-Hong Kong Stock Connect"

Trading hours of the Shenzhen Stock Exchange:
Opening Call Auction 09:15 - 09:25
Continuous Auction (Morning) 09:30 - 11:30
Continuous Auction (Afternoon) 13:00 - 14:57
Closing Call Auction 14:57 - 15:00
Allow order input 5 minutes prior to opening of each trading session
Trading currency RMB
Price limit system Price limit of ±10% based on previous closing price; Price limit of ±5% based on previous closing price for stocks under risk warning
Stock code, LOT size, max order size & tick size*
  • Stock code: 6 digits
  • LOT size: Buy 100 shares, sell can be in an odd lot but all odd lots should be sold in one single order
  • Maximum order size: 1 million shares
  • Tick size: RMB 0.01
* The stock codes of SSE &SZSE Securities are 6 digits and investors should use SSE & SZSE stock codes when placing orders. All SSE & SZSE Securities are subject to the same trading board lot size, which is 100 shares (buy orders must be in board lot). Odd lot trading is only available for sell orders and all odd lots should be sold in one single order. It is common that a board lot buy order may be matched with different odd lot sell orders, resulting in odd lot trades. It should be noted that 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. The maximum order size is 1 million shares and the tick size is uniformly set at RMB 0.01.
Quota
  • RMB 13 billion
  • No Aggregate Quota
Settlement cycle Both our securities settlement & money settlement are on Today

The above information is sourced from the prevailing information provided by HKEx and may be subject to amendment as the implementation of "Shanghai-Hong Kong Stock Connect" and "Shenzhen-Hong Kong Stock Connect", and issuance of the relevant regulations and rules progresses.

Trading rules

Quota
  • Daily quota: RMB 13 billion
    • Calculated real-time during trading hours
    • Balance: daily quota - buy orders + sell trades + adjustments (e.g. buy orders cancelled, buy orders rejected by SSE, buy orders executed at a better price)
    • If daily quota balance ≤ 0:
  1. During opening call auction (Pre-opening): New buy orders will be rejected until quota balance becomes positive (i.e. due to buy order cancellation)
  2. During continuous auction (continuous trading): Buy orders will be suspended for the remainder of the day
  3. Buy orders already input before suspension will not be affected
Orders
  • Limit orders only (Need to pre-set an order price for buy or sell)
  • To amend the order price of an existing order, clients have to first cancel the existing order and place a new order
  • For SZSE, orders are not allowed to cancel during Closing Call Auction period (14:57 to 15:00)
Trading or investment activities which are not allowed
  • Day trades
  • Block trades
  • Trading by designated brokers
  • Naked short selling

Severe weather conditions

Below are the contingency arrangements under severe weather conditions:

Scenarios "Shanghai-Hong Kong Stock Connect" & "Shenzhen-Hong Kong Stock Connect" Money Settlement
(for T-1 position)
Securities Settlement
(for T position)
T8/ Black rainstorm issued before HK market opens (i.e. 9:00 am.) and discontinued after 12:00 noon Not open No N/A
T8 issued between 9:00 a.m. and 9:15 a.m. Not open Yes
T8 issued after SSE market opens(i.e. 9:15 a.m.) Trading will continue for 15 minutes after T8 issuance, thereafter, only order cancelllation is allowed till SSE market close Yes Yes
Black rainstorm issued after HK market opens (i.e. 9:00 a.m.) Trading continues
as normal
Yes Yes
T8/ Black rainstorm discontinued at or before 12:00 noon Trading resumes
after 2 hours
Postpone to 3 p.m.
Scenarios "Shanghai-Hong Kong Stock Connect" & "Shenzhen-Hong Kong Stock Connect" Money Settlement
(for T-1 position)
Securities Settlement
(for T position)
T8/ Black rainstorm issued before HK market opens (i.e. 9:00 am.) and discontinued after 12:00 noon Not open No N/A
T8 issued between 9:00 a.m. and 9:15 a.m. Not open Yes
T8 issued after SSE/SZSE market opens(i.e. 9:15 a.m.) Trading will continue for 15 minutes after T8 issuance, thereafter, only order cancelllation is allowed till SSE/SZSE market close Yes Yes
Black rainstorm issued after HK market opens (i.e. 9:00 a.m.) Trading continues
as normal
Yes Yes
T8/ Black rainstorm discontinued at or before 12:00 noon Trading resumes
after 2 hours
Postpone to 3 p.m.

The above information is sourced from the prevailing information provided by HKEx and may be subject to amendment as the implementation of "Shanghai-Hong Kong Stock Connect" and "Shenzhen-Hong Kong Stock Connect" issuance of the relevant regulations and rules progresses.

INVESTMENT OPPORTUNITIES

Market Outlook

Positive outlook on the H-share market

Despite the steady fall of the Hang Seng China AH Premium Index, which indicates a narrowing of the gap between A and H shares, some SZ-HK dual listed companies are still expected to trade with A-share premium.

Expect net fund inflows into HK

Fund inflows are expected to impact HK liquidity more than A-shares based on the past experience of SH-HK Stock Connect. Citi analysts remain positive about MSCI China and HSCEI and neutral on CSI300.

Wider sector exposure

SZ-HK Connect is expected to have a wider stock coverage from Main Board, SME Board and ChiNext Board# than SH-HK Stock Connect.

  • SZ-HK Stock Connect: Manufacturing and I.T. are the major sectors
  • SH-HK Stock Connect: Industrials, Consumer Discretionary and Materials are the major sectors

# Citibank does not offer shares listed on the ChiNext Board of SZ-HK stock Connect.

Beneficial sectors from SZ-HK Stock Connect

  • Brokers, Insurance & Banks;
  • SZ-listed consumption leaders & manufacturing innovators
  • HK-listed IT leaders & small-to-medium economic-transition-favor listed companies

Points to note

  • The settlement currency for trading Shanghai and Shenzhen A Shares is Renminbi (RMB).
  • Both our securities settlement & money settlement for Northbound trading are on T day.
FAQ

Trading rules

Under Shanghai and Shenzhen Connect, Hong Kong and overseas investors will be subject to the following fees and levies imposed by the SSE, SZSE, ChinaClear, HKSCC or the relevant Mainland authority when they trade and settle SSE Securities and SZSE Securities:

Items Rate Paid by Charged by
Handling Fee 0.00487% of the consideration of a transaction per side Both buy and sell SSE
Securities Management Fee 0.002% of the consideration of a transaction per side Both buy and sell CSRC
Transfer Fee 0.002% of the consideration of a transaction per side Both buy and sell ChinaClear Shanghai / ChinaClear Shenzhen
0.002% of the consideration of a transaction per side Both buy and sell HKSCC
Stamp Duty 0.1% of the consideration of a transaction on the seller Buy side only SAT

The following is an example illustrating the calculation of the revised fees for Northbound Trading and Clearing:

Assume that on T day, a Clearing Participant has to clear Northbound Sell Trades with details as follows:

Trade Quantity: 300 shares   Trade Price: ¥ 10 per share

Fee Type Description Formula Amount*
Handling Fee
(經手費)
0.00487% of the
consideration of the Sell Trade
300 X ¥ 10 X 0.00487%
= ¥ 0.1461
¥ 0.15
Securities
Management Fee
(證管費)
0.002% of the consideration
of the Sell Trade
300 X ¥ 10 X 0.002%
= ¥ 0.06
¥ 0.06
Transfer Fee
(過戶費)
0.002% of the consideration
of the Sell Trade to be
charged under ChinaClear's
Shanghai-Hong Kong Stock
Connect Rules
300 X ¥ 10 X 0.002%
= ¥ 0.06
¥ 0.06
0.002% of the consideration
of the Sell Trade to be
charged under the General
Rules of CCASS
300 X ¥ 10 X 0.002%
= ¥ 0.06
¥ 0.06
Stamp Duty
(交易印花稅)
0.1% of the consideration of the Sale Trade (imposed only on the seller) 300 X ¥ 10 X 0.1%
= ¥ 3.00
¥ 3.00
Total transaction cost to settle the Sell Trade ¥ 3.33


*Note: Fees are rounded to the nearest cent.

Dividend tax is withheld upon dividend payment.

For more details about "Shanghai-Hong Kong Stock Connect" and "Shenzhen-Hong Kong stock Connect", and related information, please visit HKEx website at http://www.hkex.com.hk

The above information is sourced from the prevailing information provided by HKEx and may be subject to amendment as the implementation of "Shanghai-Hong Kong Stock Connect" and "Shenzhen-Hong Kong stock Connect", and issuance of the relevant regulations and rules progresses.

INTERNET STOCK SERVICES

You can simply set up a price alert within 2 steps to monitor the market changes!

Step:1

Log onto Citibank® Online then click Wealth Management > Stock Trading > My Toolbox > Stock Alerts > Add New Alert

Citi Alert Services step 1

Citi Alert Services step 1

Step:2

Fill in all he required information and "Confirm"

Citi Alert Services step 2

Please click here for the Citibank® Online demo.

HOW TO APPLY

New-to-bank Clients

Please click here or call our Application hotline (852) 2860 0262(852) 2860 0262

Existing Clients

3 simple steps to open a stock account online

Step:1

Logon to www.citibank.com.hk > Services > Investment Services > Apply for Securities Services.

Online stock account opening step 1

Online stock account opening step 1

Step:2

Complete 6 questions in the Suitability Questionnaire to ensure you are suitable to open a stock account, accept the Terms and Conditions, and then verify details.

Online stock account opening step 2

Step:3

Application comfirmed. Keep the "Application Reference Number" acknowledgement for future reference.

You are also warmly welcome to open a stock account at any Citibank® branch.

  • Citi Mobile® the No.1 Stock Trading Platform* A New Era to Stock Trading

Important Disclaimer:Important Disclaimer:

For the latest and more details of the trading mechanism, you may refer to HKEx official announcement and frequently asked questions.

You should seek advice from your professional advisors as to your particular taxable position, including but not limited to estate duty and withholding tax that might arise from investing in overseas products. This material is for information purposes only and is not intended to constitute any offer any offer or solicitation or advice to buy or sell any security. Investments are not bank deposits and are not obligations of, guaranteed or insured by Citibank (Hong Kong) Limited, Citibank, N.A., Citigroup Inc. or any of its affiliates or subsidiaries, or by any local government or insurance agency, and involve risks, including the possible loss of the principal amount invested. Share prices may go down as well as up. Investment products are not available for U.S. persons and might only be applicable to limited jurisdiction. Any person considering an investment should seek independent advice on the suitability or otherwise of the particular investment.

Although information has been obtained from and is based upon sources that Citibank believes to be reliable, Citibank does not guarantee its accuracy and it may be incomplete and condensed. All opinions, projections and estimates constitute the judgment of the author as of the date of publication and are subject to change without notice. Prices and availability of financial instruments also are subject to change without notice. Past performance is no guarantee of future results.

Major Risk Disclosure of China Connect (Shanghai-Hong Kong Stock Connect /Shenzhen-Hong Kong Stock Connect):Major Risk Disclosure of China Connect (Shanghai-Hong Kong Stock Connect /Shenzhen-Hong Kong Stock Connect):

(a) Trading under China Connect is subject to a cross-boundary investment daily quota; (b) Any Northbound trading under China Connect will not be covered by Hong Kong's Investor Compensation Fund; (c) China Connect will only operate on days when both markets are open for trading and when banks in both markets are open on the corresponding settlement days. You should take note of the days China Connect is available for trading and decide according to your own risk tolerance capability whether or not to take on the risk of price fluctuations in A-shares during the time when trading on China Connect is not available; (d) Trading under China Connect is subject to currency risks; and (e) You should familiarize yourself with and observe the eligibility restrictions in relation to China Connect and the applicable Mainland China laws and regulations concerning Northbound trading and in particular, the shareholding restrictions imposed and your disclosure obligations thereunder. The above statements cannot disclose all the risks involved. You should read and understand the Terms and Conditions and the full risk disclosures.