Shenzhen-Hong Kong Stock Connect Trading Operation Guide:

The China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission jointly announced the official launch of the Shenzhen-Hong Kong stock trading interconnection mechanism on the evening of the 25th. Related stock transactions will be launched in 2016 Starting December 5th.

1. Can you open Shenzhen-Hong Kong Stock Connect?

The regulatory threshold for individual investors to invest in Shenzhen-Hong Kong Stock Connect is basically the same as that of Shanghai-Hong Kong Stock Connect: the risk tolerance needs to be stable and above, and they need to have assets of more than 500,000 yuan (including credit Account's own assets), when opening an account, you need to take the Hong Kong Stock Connect knowledge test and obtain a score of 90 or above, and the integrity status meets the standards.

2. How to open Shenzhen-Hong Kong Stock Connect?

For investors, it is actually very simple. A-share investors have opened the "Hong Kong Stock Connect", which means they can buy and sell stocks listed on the Hong Kong Stock Exchange within the prescribed range through the Shenzhen Stock Exchange. You don’t have to go to the sales department. You can handle it through mobile APPs, trading software, and online business halls.

The account opening procedure is roughly divided into three steps:

Customer application

Suitability assessment

Signing of the agreement

At present, more than half of the securities firms have obtained the permission to open the Shenzhen-Hong Kong Stock Connect business. Based on the total number of 112 in the industry, more than half of the securities firms can open the Shenzhen-Hong Kong Stock Connect business. Many brokerages have officially accepted account openings. If you are interested, you can apply now, and you will be able to participate in transactions as soon as possible.

3. With the Shanghai-Hong Kong Stock Connect, is it necessary to open the Shenzhen-Hong Kong Stock Connect?

The answer is yes. Because the trading subjects of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect are different, you must open Shenzhen-Hong Kong Stock Connect to buy and sell stocks in Shenzhen-Hong Kong Stock Connect. In addition, funds from both sides cannot be used cross-wise after opening.

4. What securities products can be traded under Shenzhen-Hong Kong Stock Connect?

Shenzhen Stock Connect: Shenzhen Component Index, Shenzhen Stock Exchange Small and Medium-sized Index constituent stocks, and the average daily market value within 6 months exceeds 6 billion yuan, excluding ST categories.

Hong Kong Stock Connect: A+H stocks that are constituent stocks of the Hang Seng Index and have a market value of not less than HK$5 billion within 12 months and are listed on Hong Kong stocks.

5. How are the trading hours and trading rules of Hong Kong stocks different from those of A-shares?

First of all, the trading hours of Hong Kong stocks are from 09:30 to 12:00 in the morning and from 13:00 to 16:00 in the afternoon. The whole-day trading time is one and a half hours longer than that of mainland A shares. Secondly, Hong Kong stocks are traded on a T+0 basis, which means they can be bought and sold on the same day. It is worth noting that Hong Kong stocks do not have price limits, and mainland investors have to adapt to green prices rising and red prices falling.

6. How to solve the exchange problem?

There is no need to exchange Hong Kong dollars into the account. For Hong Kong Stock Connect transactions, transactions are quoted in Hong Kong dollars and cleared and settled in RMB. How much you can ultimately earn is calculated using a formula based on the actual exchange rate.

For beneficial stocks, you can look at A+H shares in the Shenzhen Stock Exchange, which are low-valuation and high-growth stocks in the Shenzhen Stock Exchange.