Eligible individual investors can purchase Hong Kong stocks through Shanghai-Hong Kong Stock Connect.

to open Shanghai-Hong Kong Stock Connect, individual investors need shareholder accounts with A shares of Shanghai Stock Exchange and three-party deposits with RMB, and the total of securities accounts and capital accounts should not be less than RMB 5,, excluding funds and securities assets integrated through securities lending transactions and the market value of the New Third Board.

At the same time, it must pass the business evaluation of Shanghai-Hong Kong Stock Connect, and there is no serious record of dishonesty and the prohibition of trading in Hong Kong Stock Connect. On this basis, for qualified mainland investors who want to trade Hong Kong Stock Connect under Shanghai-Hong Kong Stock Connect, they need to entrust the mainland brokers with the trading authority of Shanghai-Hong Kong Stock Connect, and then the brokers will entrust the order routing to Shenzhen Securities Trading Service Company, and finally submit the order to the Stock Exchange.

The Shanghai-Hong Kong Stock Connect transaction highlights the convenience arrangement to the maximum extent, and upholds the "four noes" principle that institutions in the two places have always emphasized, that is, it does not change the existing laws, regulations and supervision system, does not change the organizational structure of the securities market, basically does not change investors' trading habits, and does not increase investors' trading costs in principle.

Many investors are deeply impressed by the intraday revolving trading in the Hong Kong market, and interpret it as "T+". In fact, the "T+2" settlement system implemented in Hong Kong (buying on T day, and receiving the shares on T+2 day) only allows investors to sell the shares on T day and T+1 day before the shares are received.

extended information

according to the tax arrangements of the mainland and Hong Kong and the relevant provisions of the tax treaties signed by China with most countries, the income from share transfer of non-residents is basically not subject to income tax except in a few cases. Therefore, the policy is clear, and the difference between investors (including enterprises and individuals) buying and selling A shares in Hong Kong market is temporarily exempted from income tax.

In addition to Shanghai-Hong Kong Stock Connect, foreign investors have invested in the domestic securities market through QFII and RQFII. Considering the similarity of QFII, RQFII and Shanghai-Hong Kong Stock Connect in transaction nature and economic essence, it is appropriate to consider all aspects of tax policy. Therefore, the income from the transfer of equity investment assets such as shares obtained by QFII and RQFII shall be given tax-free treatment.

In addition, since November 17, 214, the difference income of unit investors in Hong Kong market who buy and sell A shares listed on the Shanghai Stock Connect will be temporarily exempted from business tax. Hong Kong market investors buy, sell, inherit and donate A shares listed on the Shanghai Stock Connect, and pay stamp duty on securities (stocks) transactions according to the current tax system in the Mainland. Mainland investors buy, sell, inherit and donate shares listed on the Stock Exchange through Shanghai-Hong Kong Stock Connect, and pay stamp duty in accordance with the current tax laws of the Hong Kong Special Administrative Region.

People's Daily Online-A Picture to Understand Shanghai-Hong Kong Stock Connect

People's Daily Online-Mainlanders are exempt from tax when they buy Hong Kong stocks (policy interpretation, express delivery)