2. The trading time is different. Shanghai-Hong Kong Stock Connect will be suspended for a few days before the holidays, and sometimes the inconsistent holidays between the two places lead to different trading hours. For example, Hong Kong stocks rose sharply in the National Day and fell sharply in the Spring Festival, and Shanghai-Hong Kong Stock Connect could not trade.
3. The entry threshold is different. Shanghai-Hong Kong Stock Connect needs more than 500,000 assets to trade in the Mainland, while Yingtong Securities does not have this threshold. Only need to meet the minimum foreign exchange equivalent of $654.38+$00,000, and the foreign exchange equivalent of $654.38+$00,000 can be used for financing. The financing margin of many large blue-chip stocks such as Hong Kong stocks and US stocks is very low.
4. Margin trading is different. Hong Kong Stock Connect, a domestic brokerage, cannot provide margin financing and securities lending, while Yingtong Securities can provide margin financing and securities lending, not only for Hong Kong stocks, but also for A shares. Of course, the margin of A-share financing is relatively high, and pure A-share financing can only be 1.5- 1.6 times. Of course, it would be better to raise money with H shares.
5. The financing interest rate is different. Buying A shares or Hong Kong stocks through Yingtong Securities, the interest rate of RMB bonds is about 4-6% per year, and the interest rate of Hong Kong dollar bonds is about 2% or more. At the same time, the above RMB liabilities or Hong Kong dollar liabilities can be converted into US dollars, euros and Japanese yen liabilities, so the annualized financing interest rate is only a little more than 1%.
6. Different liquidation methods. There is no time limit for financing A shares or Hong Kong stocks through Yingtong Securities. The monthly interest will automatically roll into the debt, and there is no need to repay it on schedule. As long as the balance sheet meets certain liquidity requirements, it will not close the position. This liquidity requirement is generally very low, and once it is closed, only a small part will be closed to meet the liquidity.
7. Different trading methods. Mainland brokers can't buy A shares immediately after buying and selling Hong Kong stocks, but they can buy A shares immediately after Yingtong Securities sells Hong Kong stocks. In fact, they can raise money to buy A shares first, and then sell Hong Kong stocks for repayment. In other words, Yingtong Securities can trade AH shares in real time, while Shanghai-Hong Kong Stock Connect in the Mainland cannot.
8. Foreign exchange treatment is different. Buying Hong Kong stocks in mainland securities firms is not really using foreign exchange, but a kind of pre-borrowing, which will charge about 3% spread and return it after selling. However, Yingtong Securities has fully realized its own foreign exchange, and there is no so-called spread.
9. The subject matter of the transaction is different. Shanghai-Hong Kong Stock Connect can only buy the target of Shanghai-Hong Kong Stock Connect, not other targets; Yingtong Securities can buy bonds, stocks, futures, options, foreign exchange and other targets in most markets around the world, including Singapore A50, which is a real global investment.
10, the overall concept is different. It is only a trading software in the Mainland, and many things are restricted. However, there is a concept of assets and liabilities in stock connect. Stock Connect will treat your account as a multinational company, how many stocks, currencies, funds, options and other assets there are, and how many currencies and liabilities there are in different countries. As long as the account meets the liquidity index, it is safe. Many functions can be realized under this concept, such as withdrawing money after financing.