沪港通
a door for us to buy China
shares. It is set to lift the trading
volume of certain Hong Kong and Shanghai shares. Shanghai-Hong Kong Stock Connect establishes
mutual stock market access between mainland China and Hong Kong.
In total, 568 Shanghai-listed stocks (A-shares) will be available through Hong Kong while 266 Hong Kong-listed stocks (H-shares) will be accessible by mainland investors. Out of the 266 H-shares, about 70 of these companies are dual-listed in Shanghai and Hong Kong.
Share prices and trading of A-shares will be in Chinese Yuan while share prices of H-shares will be quoted in Hong Kong Dollars and settled in Chinese Yuan. The arrangement will boost the use of the RMB in global trade. Oversea investors and traders may want to take of this - share transactions are executed in Chinese Yuan, this poses a currency risk to overseas investors, who must choose to pay a fee to hedge their translation exposure or be subjected to foreign exchange fluctuations.
Both exchanges will impose a daily quota of RMB 13 billion (A-shares) and RMB 10.5 billion (H-shares) respectively.
Chinese institution and investors with a minimum RMB 0.5 million in their securities accounts will be granted access to Hong Kong shares through mainland brokerages.
The Stock Connect will not allow intraday trading while investors are required predeliver their orders. This means that purchases and disposals of A-shares must occur over separate trading sessions. Intraday traders need to take note on this.
In total, 568 Shanghai-listed stocks (A-shares) will be available through Hong Kong while 266 Hong Kong-listed stocks (H-shares) will be accessible by mainland investors. Out of the 266 H-shares, about 70 of these companies are dual-listed in Shanghai and Hong Kong.
Share prices and trading of A-shares will be in Chinese Yuan while share prices of H-shares will be quoted in Hong Kong Dollars and settled in Chinese Yuan. The arrangement will boost the use of the RMB in global trade. Oversea investors and traders may want to take of this - share transactions are executed in Chinese Yuan, this poses a currency risk to overseas investors, who must choose to pay a fee to hedge their translation exposure or be subjected to foreign exchange fluctuations.
Both exchanges will impose a daily quota of RMB 13 billion (A-shares) and RMB 10.5 billion (H-shares) respectively.
Chinese institution and investors with a minimum RMB 0.5 million in their securities accounts will be granted access to Hong Kong shares through mainland brokerages.
The Stock Connect will not allow intraday trading while investors are required predeliver their orders. This means that purchases and disposals of A-shares must occur over separate trading sessions. Intraday traders need to take note on this.
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