SSE Securities for trading by Hong Kong and overseas investors, i.e. “Northbound Trading”. Among the different types of SSE-listed securities, only A shares will be included in Shanghai-Hong Kong Stock Connect in the initial stage. Other product types such as B shares, Exchange Traded Funds (“ETF”s), bonds, and other securities will not be included.

In the initial phase, Hong Kong and overseas investors will be able to trade certain stocks listed on the SSE market (ie “SSE Securities”). These include all the constituent stocks from time to time of the SSE 180 Index and SSE 380 Index, and all the SSE-listed A shares that are not included as constituent stocks of the relevant indices but which have corresponding H shares listed on SEHK, except the following:

(a) SSE-listed shares which are not traded in RMB; and

(b) SSE-listed shares which are included in the “risk alert board”*

*According to the SSE Listing Rules, any SSE-listed company which is in the delisting process, or which operation is unstable due to financial or other reasons, to the extent that it is running the risk of being delisted or exposing investors’ interest to undue damage, the SSE-listed company will be earmarked and traded on the “risk alert board”. For details, please refer to the SSE Listing Rules and SSE Risk Alert Board Provisional Trading Arrangement.

For any SSE-listed security which is not accepted as an SSE Security upon the launch of operation of Shanghai-Hong Kong Stock Connect due to its being under “risk alert”, if it is subsequently removed from the “risk alert board”, it will be accepted as an SSE Security if it remains as a constituent stock of the relevant indices or if its corresponding H share continues to be listed and traded on the SEHK (as appropriate). Investors will only be allowed to sell an SSE Security but restricted from further buying if:

(a) the SSE Security subsequently ceases to be a constituent stock of the relevant indices; and/or

(b) the SSE Security is subsequently under “risk alert”; and/or

(c) the corresponding H share of the SSE Security subsequently ceases to be traded on SEHK, as the case may be

In the case where a PRC company is seeking simultaneous listing on both SSE (as A share) and SEHK (as H share), the relevant A share will be accepted as an SSE Security after any stabilization periods both the A share and H share have passed as required by the respective exchange or regulator.

In the case where a PRC company whose share is listed on SEHK (as H shares) seeks an A share listing on SSE, the A share will be accepted as an SSE Security after the A share has passed the stabilization period as required by SSE. In the case where an SSE-listed company whose share is not also listed on SEHK seeks an H share listing on SEHK, the A share will be accepted as an SSE Security only after any applicable stabilization period has expired as required by SFC.

In the case where the corresponding H share of an SSE Security is suspended from trading on SEHK, whether investors will be allowed to further buy and/or sell the SSE Security which remains active on SSE is being considered by the relevant regulators. The final arrangement will be announced in due course.

Hong Kong and overseas investors may receive shares or other types of securities from the issuer of SSE Security as entitlements:

(a) if the entitlement security is an SSE Security, Hong Kong and overseas investors will be allowed to buy and sell the entitlement security through Shanghai-Hong Kong Stock Connect;

(b) if the entitlement security is not an SSE Security but is a SSE-listed security, Hong Kong and overseas investors will be allowed to sell the entitlement security through Shanghai-Hong Kong Stock Connect, but will not be allowed to buy such entitlement security; and

(c) if the entitlement security is not a SSE-listed security, Hong Kong and overseas investors will not be allowed to buy or sell the entitlement security on SSE. HKSCC is considering alternative arrangements which could be put in place to handle such entitlement, and will update CPs in due course.

Trading under Shanghai-Hong Kong Stock Connect will, initially, be subject to a maximum cross-boundary investment quota (i.e., Aggregate Quota), together with a Daily Quota.

Northbound trading will be subject to a set of Aggregate and Daily Quota, which is monitored by SEHK.

The Northbound Aggregate Quota is set at RMB 300 billion.

The Northbound Daily Quota is set at RMB 13 billion.

Both the Aggregate Quota and the Daily Quota will apply on a “net buy” basis. Under that principle, investors will always be allowed to sell their cross-boundary securities regardless of the quota balance.

SEHK will publish the remaining balance of the Northbound Aggregate Quota and Daily Quota at scheduled times on the HKEx’s website.

The Aggregate Quota caps the absolute amount of fund inflow into Mainland under Northbound and the absolute amount of fund outflow from the Mainland under Southbound. At the end of each trading day, SEHK will calculate the remaining balance of the Northbound Aggregate Quota:

Aggregate Quota Balance = Aggregate Quota – Aggregate Buy Trades + Aggregate Sell Trades.

If Aggregate Quota Balance is less than Daily Quota, Northbound buying will be suspended on the next trading day. However, investors can continue to sell SSE Securities, which will then increase the Aggregate Quota Balance. SEHK will re-open Northbound buying once the Aggregate Quota balance returns to the Daily Quota level or above.

The Daily Quota limits the maximum net buy value of cross-boundary trades under Shanghai-Hong Kong Stock Connect each day.

SEHK monitors the usage of the Northbound Daily Quota on a real time basis. The Northbound Daily Quota Balance is updated each time when a Northbound order is received and executed:
Daily Quota Balance = Daily Quota – Buy Orders + Sell Trades + Adjustments*

Daily Quota will be refreshed and remain the same everyday, subject to the balance of the Aggregate Quota. Unused Daily Quota will NOT be carried over to next day’s Daily Quota.

Once the Northbound Daily Quota Balance drops to zero or is exceeded during a continuous auction session (Continuous Trading), no further buy orders will be accepted for the remainder of the day. Subject to the Aggregate Quota Balance, SEHK will resume the Northbound buying service on the following trading day.

Once the Northbound Daily Quota Balance drops to zero or the Daily Quota is exceeded during the opening call session, new buy orders will be rejected. However, as order cancellation is common during opening call auction, the Northbound Daily Quota Balance may resume to a positive level before the end of the opening call auction. When that happens, SEHK will again accept Northbound buy orders.

It should be noted that buy orders already accepted will not be affected by the Daily Quota being used up and will remain on the order book of SSE unless otherwise cancelled by the relevant EPs.

*Daily Quota Balance will be increased when

a) a buy order is cancelled;

b) a buy order is rejected by the other exchange; or

c) a buy order is executed at a better price.

Day trading is not allowed for Mainland A shares market. Therefore, Hong Kong and overseas investors buying SSE Securities on T-day can only sell the shares on and after T+1 day.

Hong Kong and overseas investors are prohibited from naked short selling in SSE Securities, and will not be allowed to participate in the Mainland’s margin trading and securities lending.

For SSE 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) based on previous closing price. All orders input for SSE Securities must be within the price limit. Any orders with price beyond the price limit will be rejected by SSE. The upper and lower price limit will remain the same intra-day.

Under the current PRC rules, when an investor holds or controls up to 5% of the issued shares of an SSE-listed issuer, the investor is required to disclose his 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 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 falling below 5% of the issued shares in the listed issuer, the investor is required to disclose the information within three working days.

* The 5% change means the actual magnitude of the net change of its shareholding as a percentage of the total issued share capital of the company (e.g. an increase from 10% to 15% or decrease from 10% to 5%).

For the avoidance of doubt, we expect HKSCC as the nominee holding SSE Securities on behalf of Hong Kong and oversea investors will be exempted from the disclosure requirement.

Clients can place/amend/cancel trading orders by either one of the following methods:

1. Account Executive

   Clients can place orders by phone to Account Executive
   

2. Online Trading

   Clients can place orders through the online trading system and enquire account details
   

3. Dealing Hotline

   Clients can place/amend/cancel trading orders through Hong Kong Dealing Hotline at (852) 2841 6388 and Mainland China Toll Free Dealing Hotline at 400-120-0364

09:20 – 09:25: SSE will not accept order cancellation

09:10 – 09:15; 09:25 – 09:30; 12:55 – 13:00: Orders and order cancellations can be accepted by SEHK but will not be processed by SSE until SSE’s market open. Orders that are not executed during the opening call auction session will automatically enter the continuous auction session

1. Day-1

   Mainland：Business Day

   Hong Kong：Business Day

   Open for Northbound Trading：Yes

2. Day-2

   Mainland：Business Day

   Hong Kong：Business Day

   Open for Northbound Trading：No, HK market closes on money settlement day

3. Day-3

   Mainland：Business Day

   Hong Kong：Public Holiday

   Open for Northbound Trading：No, HK market closes on trading day

4. Day-4

   Mainland：Public Holiday

   Hong Kong：Business Day

   Open for Northbound Trading：No, Mainland market closes

Hong Kong and overseas investors will trade and settle SSE Securities in RMB only.

Northbound trades will follow the A share settlement cycle. For securities settlement, ChinaClear will debit or credit its clearing participants’ (including HKSCC as clearing participant) stock accounts before 6:00pm on T day to settle their A share trades. To facilitate SSE Securities settlement cycle, HKSCC will conduct securities settlement on Northbound trades for its CPs via two rounds of Batch Settlement Runs at around 4:30pm and 6:00pm on T day. For money settlement of Northbound trades, it will be effected by around noon on T+1 day.

• Margin financing will be provided to China Connect Securities that are included in the List of Eligible SSE Securities for Margin Trading only.
• For the China Connect Securities which are not on the List of Eligible SSE Securities for Margin Trading (non-marginable A shares) will be marked with “*” before the stock name for easy identification.
• For the first-time purchase of non-marginable A shares via account maintained with SWHY, a designated sub-account ended with “(NMA)”, which stands for “Non-marginable A shares” Account, will be opened for the client to segregate stock holdings of non-marginable A shares.
• Any trades of non-marginable A shares done in accounts other than “(NMA)” sub-account will be re-booked to the “(NMA)” sub-account on T day. Clients are required to have sufficient funds for completion of trade on settlement day.

• 我司只提供孖展借貸予客戶買賣“合資格滬股通保證金交易股票名單”中的股票。
• 我司會於所有不包括在“合資格滬股通保證金交易股票名單”之滬股通股票（“非合資格保證金股票”） 名稱前將加上「*」以便識別。
• 我司會為首次透過我司買入非合資格保證金股票之客戶開立指定附屬帳戶以存放非合資格保證金股票，該指定附屬帳戶的帳戶名會以“(NMA)”結尾，NMA意指“Non-Marginable A shares” Account。
• 所有於該指定附屬NMA帳戶以外帳戶之非合資格保證金股票交易，我司會在交易日（T Day） 把股票轉移至指定附屬帳戶。客戶須於交收日存入足夠資金完全交收。

SZSE Securities for trading by Hong Kong and overseas investors, i.e. “Northbound Trading”. ChiNext stocks will be limited to institutional professional investor during the initial launch of Shenzhen Connect.

Among the different types of SZSE-listed securities, only A shares are included in Shenzhen Connect. Other product types such as B shares, Exchange Traded Funds (“ETFs”), bonds, and other securities are not included. Under Shenzhen Connect, SZSE Securities that are eligible for trading by Hong Kong and overseas investors include all the constituent stocks of the SZSE Component Index and the SZSE Small/Mid Cap Innovation Index which have a market capitalization of not less than RMB 6 billion, and all the SZSE-listed A shares which have corresponding H shares listed on SEHK, except the following:

(a) SZSE-listed shares which are not traded in RMB; and
(b) SZSE-listed shares which are under risk alert or under delisting arrangement*.

*Under risk alert in relation to A shares listed on the SZSE Main Board or SZSE SME Board, means the relevant shares are placed under “risk alert” by SZSE including shares of “ST companies”, “*ST companies”; and in relation to any A shares listed on the SZSE Market, means the relevant shares are subject to the delisting process or the listing of which has been suspended by SZSE under the SZSE Rules. For details, please refer to the SZSE Listing Rules.

At the initial stage of Shenzhen Connect, investors eligible to trade shares that are listed on the ChiNext Board of SZSE under Northbound trading will be limited to institutional professional investors. Subject to resolution of related regulatory issues, other investors may subsequently be allowed to trade such shares.

SZSE-listed securities will be included and excluded as SZSE Securities based on adjustments made to the SZSE Component Index and the SZSE Small/Mid Cap Innovation Index, the market capitalization of each constituent stock of the SZSE Component Index and the SZSE Small/Mid Cap Innovation Index calculated according to such methodology as determined by SZSE at the periodic adjustment of the index, the timing at which the relevant A shares and H shares are listed on or delisted from SZSE and/or SEHK, and the timing at which relevant A shares are placed under risk alert or released from risk alert.

Investors will only be allowed to sell but restricted from buying such SZSE Securities if:

(a) Such securities subsequently cease to be a constituent stock of the relevant indices; and/or
(b) Such securities are, based on any subsequent periodic review, determined to have a market capitalisation of less than RMB 6 billion; and/or
(c) They are subsequently placed under risk alert; and/or
(d) The corresponding H shares of such securities are subsequently delisted from SEHK, as the case may be.

In the case where a PRC company is seeking simultaneous listing on both SZSE (as A share) and SEHK (as H share), the relevant A share will be accepted as an SZSE Security after it has been traded on SZSE for 10 trading days and after the price stabilization period (as stipulated in its prospectus) of the corresponding H share has ended or expired, whichever is later.

In the case where an SZSE-listed company whose A share is not accepted as an SZSE Security seeks an H share listing on SEHK, the A share will be accepted as an SZSE Security after the price stabilisation period (as stipulated in its prospectus) for the H share has ended or expired.

In the case where a PRC company whose share is listed on SEHK (as H share) seeks an A share listing on SZSE, the A share will be accepted as an SZSE Security after it has been traded on the SZSE for 10 trading days.

In the case where the corresponding H share of an SZSE Security is suspended from trading on SEHK, investors can continue to buy and sell the SZSE Security unless otherwise determined by SEHK.

Trading under Shenzhen Connect will be subject to a Daily Quota,

Northbound trading and Southbound trading are respectively subject to a separate set of Daily Quota, which is monitored by SZSE:

The Northbound Daily Quota is set at RMB 13 billion

The Southbound Daily Quota is set at RMB 10.5 billion

There is no Aggregate Quota for Shenzhen Connect

The Daily Quota is applied on a “net buy” basis. Under that principle, investors will always be allowed to sell their cross-boundary securities regardless of the quota balance.

The Daily Quota limits the maximum net buy value of cross-boundary trades under each of Shenzhen Connect each day. SZSE monitors the usage of the Northbound Daily Quota on a real time basis. The Northbound Daily Quota Balance is updated each time when a Northbound order is received and executed:

Daily Quota Balance = Daily Quota – Buy Orders + Sell Trades + Adjustments*

The Daily Quota will be reset every day. Unused Daily Quota will NOT be carried over to next day’s Daily Quota. Once the Northbound Daily Quota Balance drops to zero or the Daily Quota is exceeded during the opening call auction session, new buy orders will be rejected. However, as order cancellation is common during opening call auction, the Northbound Daily Quota Balance may resume to a positive level before the end of the opening call auction. When that happens, SEHK will again accept Northbound buy orders.

Once the Northbound Daily Quota Balance drops to zero or the Daily Quota is exceeded during a continuous auction session, no further buy orders will be accepted for the remainder of the day. The same arrangement will be applied to the closing call auction.

It should be noted that buy orders already accepted will not be affected by the Daily Quota being used up and will remain on the order book of SZSE unless otherwise cancelled by relevant EPs.

*Daily Quota Balance will be increased when a) a buy order is cancelled; b) a buy order is rejected by the other exchange; or c) a buy order is executed at a better price.

Day trading is not allowed for Mainland A Shares market. Therefore, Hong Kong and overseas investors buying SZSE Securities on T day can only sell the shares on and after T+1 Day.

Hong Kong and overseas investors are prohibited from naked short selling in SZSE Securities, and will not be allowed to participate in the Mainland’s margin trading and securities lending.

For SZSE Securities, there is a general price limit of ±10% (and ±5% for stocks under special treatment (i.e. ST and *ST stocks) under risk alert) based on previous closing price.

All orders input for SZSE Securities must be at or within the price limit. Any order with a price beyond the price limit will be rejected by SZSE. The upper and lower price limit will remain the same intra-day. Stocks traded on SZSE’s ChiNext Market are also subject to a ±10% price limit based on the previous closing price.

Under the current PRC rules, when an investor holds or controls up to 5% of the issued shares of an SZSE-listed issuer, the investor is required to disclose his 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 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 falling below 5% of the issued shares in the listed issuer, the investor is required to disclose the information within three working days.

*The 5% change means the actual magnitude of the net change of its shareholding as a percentage of the total issued share capital of the company (e.g. an increase from 10% to 15% or decrease from 10% to 5%).

For the avoidance of doubt, we expect HKSCC as the nominee holding SZSE Securities on behalf of Hong Kong and oversea investors will be exempted from the disclosure requirement.

• All foreign investors’ shareholding in the A Shares of a listed company is not allowed to exceed 30% of its total issued shares.
• When the aggregate foreign shareholding of an individual A share reaches 26%, SZSE will publish a notice on its website
• When the aggregate foreign shareholding exceeds the 30% threshold, the foreign investors concerned will be requested to sell the shares on a last-in-first-out basis within five trading days.
• Foreign investor is defined as investor who are QFII, RQFII or trade shares via the Shenzhen-Hong Kong Stock Connect programs
• After the implementation of Shenzhen-Hong Kong Stock Connect, when aggregate foreign shareholding of an individual A Share reaches 28%, SEHK will stop accepting further buy order on that A Share, until shareholding lowers to 26%
• Foreign investors can continue to sell the A share whose aggregate foreign shareholding has reached the 30% threshold. If such selling activities cause the aggregate foreign shareholding to drop below the 30% threshold within 5 trading days, EPs who were subject to the forced-sale requirement may submit an application to SEHK for a forced-sale exemption.
• A Single foreign investors’ shareholding in the A Shares of a listed company is not allowed to exceed 10% of its total issued shares.

Clients can place/amend/cancel trading orders by either one of the following methods:

1. Account Executive

   Clients can place orders by phone to Account Executive
   

2. Online Trading

   Clients can place orders through the online trading system and enquire account details
   

3. Dealing Hotline

   Clients can place/amend/cancel trading orders through Hong Kong Dealing Hotline at (852) 2841 6388 and Mainland China Toll-Free Dealing Hotline at 400-120-0364

09:20 – 09:25, 14:57 – 15:00: SZSE will not accept order cancellation;

09:10 – 09:15; 09:25 – 09:30; 12:55 – 13:00: Orders and order cancellations can be accepted by SEHK but will not be processed by SZSE until SZSE’s market open; Any buy or sell orders not executed during the opening call auction session will automatically enter the continuous auction session. Any buy or sell orders not executed during the continuous auction session will automatically enter the closing call auction session; Southbound trading follows SEHK’s trading hours.

1. Day-1

   Mainland：Business Day

   Hong Kong：Business Day

   Open for Northbound Trading：Yes

2. Day-2

   Mainland：Business Day

   Hong Kong：Business Day

   Open for Northbound Trading：No, HK market closes on money settlement day

3. Day-3

   Mainland：Business Day

   Hong Kong：Public Holiday

   Open for Northbound Trading：No, HK market closes on trading day

4. Day-4

   Mainland：Public Holiday

   Hong Kong：Business Day

   Open for Northbound Trading：No, Mainland market closes

Hong Kong and overseas investors will trade and settle SZSE Securities in RMB only.

Northbound trades executed under Shenzhen Connect will follow the settlement cycles of the Shenzhen markets - stock settlement on T day, and money settlement on T+1 day.

• Margin financing will be provided to China Connect Securities that are included in the List of Eligible SZSE Securities for Margin Trading only.
• For the China Connect Securities which are not on the List of Eligible SZSE Securities for Margin Trading (non-marginable A shares) will be marked with “*” before the stock name for easy identification.
• For the first-time purchase of non-marginable A shares via account maintained with SWHY, a designated sub-account ended with “(NMA)”, which stands for “Non-marginable A shares” Account, will be opened for the client to segregate stock holdings of non-marginable A shares.
• Any trades of non-marginable A shares done in accounts other than “(NMA)” sub-account will be re-booked to the “(NMA)” sub-account on T day. Clients are required to have sufficient funds for completion of trade on settlement day.