The main reason why the cost price of Southbound Trading is high is that the reference cost price of Southbound Trading is calculated in Hong Kong dollars, which involves the process of converting Hong Kong dollars into RMB when buying, and then converting RMB into Hong Kong dollars when selling. One sale and two exchanges, and there is a difference between the buying and selling reference exchange rate and the buying and selling settlement rate.
Generally speaking, the buying and selling reference exchange rate freezes 3% more of the customer's funds than the buying and selling settlement rate. On this basis, our company freezes 1% more of the customer's funds when buying and selling to control overdraft risks. .
Hong Kong Stock Connect means that investors entrust members of the Shanghai Stock Exchange to declare to the Stock Exchange through the Shanghai Stock Exchange Securities Trading Service Company to buy and sell stocks listed on the Stock Exchange within the prescribed range. Its scope is the component stocks of the Hang Seng Composite Large Cap Index and the Hang Seng Composite Mid Cap Index of the Stock Exchange of Hong Kong and the A+H shares of companies listed on the Stock Exchange of Hong Kong and the Shanghai Stock Exchange. Both parties can adjust the scope of investment targets based on the pilot situation. In the early stages of the pilot, the Hong Kong Securities Regulatory Commission required that domestic investors participating in Southbound Trading were limited to institutional investors.
On November 11, 2014, China Construction Bank and Industrial and Commercial Bank of China became the first batch of "Hong Kong Stock Connect" business settlement banks, and were allowed to handle cross-border settlement and exchange of funds for the "Hong Kong Stock Connect" business.
The China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission issued a joint announcement stating that the total quota of Shanghai-Hong Kong Stock Connect is 300 billion yuan (6.2113,-0.0013,-0.02%), and the daily quota is 13 billion yuan. The total quota of Hong Kong Stock Connect is 250 billion yuan, and the daily quota is 10.5 billion yuan. The official launch of Shanghai-Hong Kong Stock Connect requires 6 months of preparation time. In the initial stage of the pilot, the stock scope of the Shanghai-Hong Kong Stock Connect is the constituent stocks of the SSE 180 and SSE 380, as well as A+H shares listed on the Shanghai Stock Exchange. The stock scope of Southbound Trading is the constituent stocks of the Hang Seng Composite Large Cap Index, the Hang Seng Composite Mid Cap Index, and the A+H shares listed in Shanghai and Hong Kong at the same time. At the initial stage of the pilot, the Hong Kong Securities Regulatory Commission requires domestic investors to participate in Southbound Trading to be limited to institutional investors and individual investors with a total securities account and capital account balance of not less than 500,000 yuan.
The operation method of Shanghai-Hong Kong Stock Connect is that investors entrust Hong Kong brokers to report (order transmission) to the Shanghai Stock Exchange through the securities trading service company established by the Hong Kong Stock Exchange, and trade within the specified range. A shares.
The operation method of Southbound Connect is that investors entrust mainland securities companies to make declarations (order transmission) to the Hong Kong Stock Exchange through the securities trading service company established by the Shanghai Stock Exchange to buy and sell Hong Kong stocks within the specified range. stock.