I. System and design
1, open
Hong Kong securities are relatively more international, with overseas investors accounting for about 40% and relatively better liquidity.
Mainland securities are mainly open to China. Recently, Shanghai-Hong Kong Stock Connect was established, and related channels such as Shenzhen-Hong Kong Stock Connect will also come out.
2. Cluster
There are relatively many securities products in Hong Kong, including equity securities, equity warrants, derivative warrants, futures, options, bull and bear certificates, exchange-traded funds, unit trusts/mutual funds, real estate investment trusts, debt securities, etc., so that investors with different risk preferences can choose under different market conditions. There are relatively few mainland securities.
Second, the trading rules
1. There is a price limit in the mainland market, that is, if the price fluctuation exceeds a certain percentage, the relevant stocks will stop trading for a period of time or stop trading all day. This system does not exist in the Hong Kong market. According to the laws of Hong Kong, the stock and futures exchanges in Hong Kong shall not be closed unless instructed by the Hong Kong Securities Regulatory Commission after consulting the Financial Secretary of the Hong Kong Special Administrative Region.
2. The reaction of the details in the transaction. In the Hong Kong stock market, the color displayed on the stock quotation screen is green when the stock rises and red when it falls; The mainland is the opposite.
3. In terms of transaction settlement, the Hong Kong stock market mainly uses the Hong Kong dollar as the transaction currency; The mainland stock market uses RMB as the trading currency.
4. Hong Kong's securities clearing house will settle securities and clearing money with securities companies on T+2. All liquidation arrangements between securities companies and their clients are commercial agreements between securities companies and investors. Therefore, investors should check the settlement arrangements with securities companies before trading, such as whether they need to pay in real time when buying securities, or when they can recover their funds after selling securities. Hong Kong can conduct T+O transactions, while the mainland is currently implementing T+ 1 transactions. In other words, the same stock can be bought and sold on the first day in the Hong Kong stock market, while the mainland can only buy it on the same day and sell it the next day.