Shanghai Stock Exchange is a part of Northbound Fund and an important part of A-share and H-share companies listed on Shanghai Stock Exchange. Both Shanghai Stock Exchange and Shenzhen Stock Exchange belong to northbound funds, which means that Hong Kong and international capital enter RMB common stock.

Disadvantages of Hong Kong Stock Connect

1. The user's stock account must have sufficient balance, and the balance amount must meet the conditions of Hong Kong Stock Connect;

2. The stocks purchased by Hong Kong Stock Connect are not completely open, and there are certain conditions. Users can only buy stocks within the prescribed limits;

3. There is an upper limit on the funds and purchases used by users every day;

No matter what kind of stock, as long as it is bought in Hong Kong Stock Connect, you have to pay a certain tax.

Advantages of Hong Kong Stock Connect

1. Users can invest in Hong Kong more conveniently;

2. Hong Kong Stock Connect enterprises can balance the market transactions of both parties and effectively avoid capital risks;

Compared with other trading methods, the commission charged by Hong Kong Stock Connect is more favorable, which can reduce the financial cost of investors.