Stock Connect Northbound Trading Service

Securities Services

Investment involves risks and prices of securities may go up or down and may even become valueless.Investors should read the relevant Risk Disclosure Statement before making any investment decision.

Risk of Investing in RMB Securities

Stock Connect Terms

Supplemental Personal Information Collection Statement (For Individual, Sole Proprietorship And Partnership)

Supplemental Customer Information Collection Statement (For Corporate Customers Other Than Sole Proprietorship And Partnership)

Stock Connect Northbound Trading Service


Shanghai Stock Connect Investors can trade certain stocks listed in Shanghai Stock Exchange ("SSE")	Shenzhen Stock Connect Investors can trade certain stocks listed in Shenzhen Stock Exchange ("SZSE")	A shares Market Information Obtain free A shares market information via our "A Shares Express" website

Through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, Hong Kong and foreign investors can trade certain stocks listed in Shanghai Stock Exchange (“SSE”) and Shenzhen Stock Exchange (“SZSE”)(“Northbound Trading”) while Mainland investors can trade certain SEHK securities (“Southbound Trading”).

Our Stock Connect Northbound Trading Service enables you to trade certain A-shares listed in SSE ⁄ SZSE.

Trading and Settlement Arrangement

Trading Channels

Hang Seng Personal e-Banking^* (through desktop computers, popular tablets and supported mobile handsets)
Manned Securities Trading Hotline
Designated branches

^* After a securities transaction has been executed, the Bank will make available the essential features of the securities transaction as soon as reasonably possible through such means or medium including but not limited to Personal e-Banking, Instant Order Confirmation Service or personal call provided by the Bank from time to time and at the Bank's discretion. Customers shall check the essential features of the securities transactions by themselves through such means or medium provided by the Bank.

Trading Hours

Trading Session	Trading Hours	Trading Session	Trading Hours
Opening Call Auction	09:15 – 09:25	Opening Call Auction	09:15 – 09:25
Continuous Auction (Morning)	09:30 – 11:30	Continuous Auction (Morning)	09:30 – 11:30
Continuous Auction (Afternoon)	13:00 – 15:00	Continuous Auction (Afternoon)	13:00 – 14:57
Closing Call Auction	---	Closing Call Auction	14:57 – 15:00

Orders can be sent to China Stock Connect System (“CSC”) of The Stock Exchange of Hong Kong Limited (“SEHK”) five minutes before the session opens but will not be processed by SSE/SZSE until the market opens. Therefore, if you place a cancellation request in these five minutes, this request cannot be processed immediately until all the instructions are sent to SSE/SZSE for processing in sequence.

Notes:

09:20 – 09:25 and 14:57 – 15:00: SZSE will not accept order cancellation
09:20 – 09:25: SSE will not accept order cancellation
(a) 09:10 – 09:15 ;(b) 09:25 – 09:30 ;(c) 12:55 – 13:00: Orders and order cancellations can be input into CSC but will not be processed by SSE/SZSE until market opens
Orders that are not executed during the opening call auction session will automatically enter the continuous auction session

Order Type

Limit order only. You can place your limit order throughout the day irrespective of SSE/SZSE trading session.
Order amendment is not allowed for Northbound Trading. If you want to amend your A-share trading order, you have to cancel the order first and place a new order after successfully cancelled.
Day trading is not allowed. Therefore, customers buying A-share on T-day can only sell the share on or after T+1 day.

Eligible Stocks

1.	Constituents of SSE 180 Index and SSE 380 Index
2.	All the SSE-listed A shares that are not included as constituent stocks of the relevant indices but which have corresponding H shares listed in SEHK

1.	Constituents of SZSE Component Index, SZSE Small/Mid Cap Innovation Index and with market capitalization at least RMB6B
2.	All the SZSE-listed A shares which have corresponding H shares listed in SEHK

Excluding:

A-shares not traded in RMB
A-shares which are included in the “risk alert board”

You can obtain the latest list of eligible A-shares via our “A Shares Express” or simply click “A Shares Express (Free Quotes)” under “Stock Connect Trading” page of Hang Seng Personal e-Banking. Besides, you may also get the stocks list via HKEX’s website at http://www.hkex.com.hk.

Note:
At the initial stage of Shenzhen-Hong Kong Stock 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.

Settlement Currency & Cycle

Transactions are settled in Renminbi (“RMB”), customers should maintain sufficient funds in their RMB savings account at the time of placing an order.
Securities are settled on T day while money is settled on T+1 day.

Trading Arrangement

Northbound Trading will be opened as long as both markets are open for trading and have settlement services provided on money settlement day (i.e. T+1).

The following table illustrates the trading arrangement for Northbound Trading:

	Holiday		Northbound Trading
	Mainland	Hong Kong	Northbound Trading
Monday	No	No	Open
Tuesday	No	No	Not open (No money settlement service will be provided on Wednesday due to HK holiday)
Wednesday	No	Yes	Not open (HK holiday)
Thursday	Yes	No	Not open (Mainland holiday)

For details about the trading calendar, please refer to HKEX’s website.

Board Lot ⁄ Odd Lot Handling

All A-shares are subject to the same trading board lot size, which is 100 shares.
Buy orders must be placed in board lot.
Odd lot trading is only available for sell orders. According to SEHK, investors have to sell all the odd lots in that A-share in one go. Therefore, customers are required to check their securities account to obtain the odd lots quantities held in that A-share before placing an odd lot sale order.
Board lot orders and odd lot orders are both matched on the same platform on SSE/SZSE, and subject to the same share price. Therefore, the executed quantities of customer buy order may involve odd lots.

Example (for illustration only):
You have placed an order to buy 200 shares of Shanghai A-share ABC and the limit price is RMB10.
Your buy order will be matched at your specified price or a price better than your specified price:

Scenario of order matching (till SSE market closes):

Ask Price (RMB)	Matched Quantities
9.99	10
10.00	120

Under the above situation, your order was finally partial executed with 130 shares, in which 30 shares are odd lots.

Investor Compensation Fund

Investors should note that any Northbound or Southbound Trading under Stock Connect will not be covered by Hong Kong’s Investor Compensation Fund.
For information on Hong Kong’s Investor Compensation Fund, please refer to the website of Investor Compensation Company Limited.

Investment Quota and Price Limit

	Shanghai A-shares	Shenzhen A-shares
Daily Quota	RMB 13 billion	RMB 13 billion
	Operation: Daily Quota applies on a "net buy" basis. Under this principle, customers are allowed to sell their A-shares regardless of the quota balance. SEHK will real-time calculate during trading hours. During the following trading session, once the Daily Quota balance drops to zero or is exceeded : Opening Call Auction Session New buy orders will be rejected. If the Daily Quota balance resumes to a positive level before the end of this session, SEHK will again accept Northbound buy orders. Continuous Auction Session No further buy orders will be accepted for the rest of the day. Closing Call Auction Session (for Shenzhen A-shares only) No further buy orders will be accepted for the rest of the day. Buy orders already accepted will not be affected by the Daily Quota being used up and will remain on the order book of SSE/SZSE unless otherwise cancelled by the customers. For details about the quota calculation, please refer to HKEX’s website.
Price Limit for Buy/Sell Orders	For A-shares, there is general price limit of a ±10% (and a ±5% for stocks under special treatment (i.e. ST stocks and ST stocks) in the risk alert board) based on previous closing price. Any orders with price beyond the price limit will be rejected by SSE/SZSE. ST stocks – the net profit of listed companies were negative in two consecutive fiscal years; that share is under special treatment. ^ST stocks – the net profit of listed companies were negative in three consecutive fiscal years; that share is under delisting risk warning.
Lower Price Limit for Buy Orders	In order to better utilize the Northbound quota, SEHK sets a lower price limit for buy orders The order price input for buy order cannot be lower than the prescribed percentage of the following prices. Otherwise, your buy order will be rejected by CSC : Current best bid price; or Last traded price in the absence of current bid price; or Previous closing price in the absence of both current best bid and last traded price. According to SEHK, the prevailing prescribed percentage is 3%. Customers should note that your buy order price is still limited by general price limit set by SSE/SZSE. Example: Assume that the previous closing price and the current best bid price of Shanghai A-share ABC are RMB10 and RMB9.2 respectively. Although you set your purchase price at a price below 3% of the current best bid price, that is RMB8.92, your buy order will also be rejected by SSE. It is because compare with the previous closing price RMB10, your purchase price RMB8.92 (-10.8%) has exceeded the general price limit set by SSE. In this case, the lower purchase price that you can set is RMB9.0 (-10%).

Foreign Shareholding Restrictions

Disclosure Obligations

Fees and Key Differences in Trading & Settlement Arrangement between
Hong Kong Stocks ⁄ Shanghai A-shares ⁄ Shenzhen A-shares

Processing of Customer Identification Information (Identity Registration)

New requirement on processing of customer data (“The Northbound Investor ID model”) of the northbound trading under the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect (“Stock Connect”) will be launched from 26 September, 2018.

In providing the Stock Connect Northbound Trading Service:

The Bank has to assign a unique number to each of our securities customer / joint name account (as the case may be) in Northbound trading and mapped with relevant customer’s identity information(“Customer Identification Information” or “CID”) to SEHK which will then be forwarded to Mainland Exchanges for registration and validation.
All Northbound trading orders shall be tagged with relevant customer’s/account’s unique number assigned by the Bank which have been validated
Pre-registration is required for processing of CID
Registration shall be submitted to SEHK on the previous Northbound trading day (T-1 day) and validated by Mainland Exchanges on the same day (T-1 day). Once the Mainland Exchanges accept the registration, customer will be eligible to buy & sell A Shares on the next Northbound trading day (T day). If registration is being rejected by the Mainland Exchanges, the Bank cannot processing your A share buy order on next Northbound trading day (T day).
Customer need to take the following steps:

Read and understand the Bank’s Supplemental Personal Information Collection Statement / Supplemental Customer Information Collection Statement

Indicate customer’s consent to the processing of Customer Identification Information

Customer Consent

Registration Channel

Online
Logon Hang Seng Personal e-Banking(desktop version or Personal mobile app) and choose “Investment” >”Other Related Service” > “Application” > “Stock Connect Trading – Customer Consent”

Branches
Manned securities trading hotline / relationship mangers

Note:

Customer can also submit consent for Stock Connect Term via the above channels which are essential for using the Bank’s Stock Connect Trading Services and cannot be withdrawn.
The consent provided will apply to all personal securities accounts opened by using same ID document under the Bank
Joint name account: all account holders need to provide consent before the Bank can transmit their Customer Identification Information to Mainland Exchanges for registration

Bank’s cutoff time to receive online
customer’s consent

13:00 on each Northbound trading day (For details about the trading calendar, please refer to HKEX’s website)*
Instruction received after cutoff time will be processed on next Northbound trading day

*If you have maintained complete and valid Customer Identification Information with the Bank, the Bank will process the opt-in /opt-out registration on the same Northbound trading day

Customer Consent Status

Upon receipt of confirmation from Mainland Exchanges on your registration, the Bank will update your consent status by:

notify you via SMS to your valid mobile phone number recorded in the Bank (only for personal account customers)
update via e-Banking for “Eligible for Buy and Sell” status^# under “My Consent Status” at “Investment” > ”Securities” > “Stock Connect Trading”

^#If the “Eligible for Buy and Sell” status is “Conditionally Buy and Sell”, it means your consent on Customer Identification Information is pending for approval from Mainland Exchanges. The Bank conditionally accepted your A shares buy order for next Northbound trading day. If Mainland Exchanges reject the consent registration, the outstanding BUY order for next Northbound trading day will be cancelled automatically.

Online Consent Submission/ Amendment Illustration

Log on to Hang Seng Personal e-Banking (desktop version or Hang Seng Personal Mobile App)

Investment > Other Related Services > Application > Stock Connect Trading – Customer Consent

Example on customer consent submission

Example of amendment to withdraw customer consent

- A Shares Express
- You can obtain China A-shares real-time market information via our A Shares Express service for FREE. The information includes Shanghai A-shares and Shenzhen A-shares quote, Indices, Top 20, Northbound trading list and AH share performance.
- Shanghai ⁄ Shenzhen-Hong Kong Special Report
- Frequently Asked Questions

For more details about Stock Connect & related information, please visit HKEX website at http://www.hkex.com.hk.

Online submit customer consent on Processing of Customer Identification Information Register Now

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		Shanghai A-shares	Shenzhen A-shares
Investor	Shareholding Restrictions	Action when Reach/ Exceed of Shareholding Restrictions
Single foreign investor	Individual shareholding in an A-share cannot exceed 10% of total issued shares.	When your shareholding reaches 9.9%, the Bank will stop accepting your buy order on that A-share.
Aggregate foreign investors	Aggregate shareholding in an A-share cannot exceed 30% of the total issued shares	reaches 28%, HKEX will stop accepting further buy orders on that A-share, until shareholding lowers to 26%; exceeds 30% and the excess is due to Stock Connect, HKEX will identify the relevant exchange participant (EP) and require the EP to follow in accordance with forced-sale procedures of HKEX. If the identified purchase order is yours, you have to sell the excess quantities within 5 SSE/SZSE trading days, otherwise, the Bank will force sell your excess quantities without prior notice.

	Hong Kong Stocks	Shanghai A-shares ⁄ Shenzhen A-shares
Investment quota	N ⁄ A	Subject to Daily Quota
Stock code	5 digits	6 digits
Trading and settlement currency	HKD	RMB
Order types	Limit order; Market order; Stop loss order; All-in-one order; At auction limit order; and At auction market order	Limit order only
Amend ⁄ cancel order	Allowed	Order amendment is NOT allowed To amend an A-share trading order, customer has to cancel the order first and place a new order after successfully cancelled.
Good till order	Yes	No. Only one day order is available
Day trading	Allowed	Not allowed, shares bought on T day can only be sold on or after T+1 day
Price spread	Different securities have different price spread, details please refer to HKEX’s website	Uniformly set at RMB0.01
Board lot	Defined by listed company	All A-shares are subject to the same trading board lot size, which is 100 shares
Odd lot	All the odd lot orders can only be traded via “odd lot brokers” and sold at the odd lot market price; The odd lot market price is usually 15 to 25 spreads lower than the prevailing board lot market price.	Board lot orders and odd lot orders are both matched on the same platform on SSE/SZSE, and subject to the same share price. The executed quantities of customer buy order may be involved odd lots.
Trade before settlement	Allowed	Not allowed
Settlement cycles	Both securities and money are settled on the same day on T+2 days	Securities: settled on T day Money: settled on T+1 day
Physical scrip	Yes	No

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