1. Opening conditions: Shanghai-Hong Kong Stock Connect requires individuals and institutions to need more than 500,000 yuan, and the investment target is limited to 266 constituent stocks. The Shenzhen-Hong Kong Stock Connect rules have no requirements for idle funds and no restrictions on investment targets.
2. Interconnected parties: Shanghai-Hong Kong Stock Connect only allows investors from both places to buy and sell stocks listed on the other exchange through local securities companies within the prescribed scope. The Shenzhen-Hong Kong General Principles allow mainland and Hong Kong investors to buy and sell stocks listed on the other exchange within the prescribed scope through local securities companies or brokers.
3. Target scope: The target scope of Shanghai-Hong Kong Stock Connect is mainly large-cap stocks, while the Hong Kong Stock Connect under Shenzhen-Hong Kong Stock Connect has increased the constituent stocks of Hang Seng Composite Small Cap Index with a market value of HK$ 5 billion or more. In addition, the Hong Kong Stock Connect under the Shenzhen-Hong Kong Stock Connect has increased the constituent stocks of the Hang Seng Composite Small Cap Index with a market value of HK$ 5 billion and above, while the Shanghai-Hong Kong Stock Connect has no such restriction.
Generally speaking, Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect are both trading mechanisms connecting the mainland and Hong Kong stock markets, but there are some differences between them in terms of opening conditions, interconnection parties and target scope.