The median price of Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect is the same, and the settlement exchange rate depends on the scale and direction of their net transactions in the Shanghai-Shenzhen-Hong Kong Stock Connect market and their respective exchange rates, so the settlement exchange rates of Shanghai-Shenzhen-Hong Kong Stock Connect are not necessarily the same.
Hong Kong Stock Connect transactions are quoted in Hong Kong dollars and settled in RMB. The exchange of China Stock Connect is completed by the settlement registration company in Hongkong, and the exchange of China Stock Connect is based on the net purchase and sale of the day. The reference exchange rate of the day is announced every morning, and the actual settlement exchange rate is determined at the end of each day.
Among them, Hong Kong Stock Connect includes Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect. Shanghai-Hong Kong Stock Connect means that mainland investors entrust mainland securities companies to report to the stock exchange through the securities trading service company established by the Shanghai Stock Exchange and buy and sell stocks listed on the stock exchange within the prescribed scope; Shenzhen-Hong Kong Stock Connect means that mainland investors entrust mainland securities companies to report to the stock exchange through the securities trading service company established by Shenzhen Stock Exchange, and buy and sell stocks listed on the stock exchange within the prescribed scope.
The median price of Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect is the same, and the settlement exchange rate depends on the scale and direction of their net transactions in the Shanghai-Shenzhen-Hong Kong Stock Connect market and their respective exchange rates, so the settlement exchange rates of Shanghai-Shenzhen-Hong Kong Stock Connect are not necessarily the same.
After the official launch of Shenzhen-Hong Kong Stock Connect, due to the same exchange mechanism between Shanghai and Shenzhen clearing branches, the daily reference exchange rate of Hong Kong Stock Connect under Shanghai-Hong Kong Stock Connect is exactly the same as that under Shenzhen-Hong Kong Stock Connect. However, clearing branches in Shanghai and Shenzhen conduct foreign exchange independently, and the trading volume of Hong Kong Stock Connect under Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect will be different. After sharing the cost according to the trading margin, there may be a small difference in the exchange rate allocation to investors.
Related information:
On April 14, China Securities Regulatory Commission and Hong Kong Securities Regulatory Commission issued the Joint Announcement of China Securities Regulatory Commission and Hong Kong Securities Regulatory Commission. Decided to approve in principle the Shanghai Stock Exchange (hereinafter referred to as SSE), The Stock Exchange of Hong Kong Limited (hereinafter referred to as SEHK), China Securities Depository and Clearing Co., Ltd. (hereinafter referred to as China Clearing Co., Ltd.) and Hong Kong Securities Clearing Co., Ltd. (hereinafter referred to as Hong Kong Clearing Co., Ltd.) to carry out the pilot project of Shanghai-Hong Kong stock market trading interconnection mechanism (hereinafter referred to as Shanghai-Hong Kong Stock Connect).