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What is Shanghai-Hong Kong Stock Connect? What are the requirements for opening an account in Shanghai-Hong Kong Stock Connect?

Shanghai-Hong Kong Stock Connect is the interconnection mechanism of Shanghai-Hong Kong stock market transactions. On the one hand, it is the northbound "Shanghai Stock Connect", and foreign investors can buy and sell stocks within the fixed scope of the Shanghai Stock Exchange. On the other hand, it is the southbound "Hong Kong Stock Connect", where mainland investors buy and sell stocks within the prescribed scope of listing in Hong Kong. Add up to Shanghai-Hong Kong Stock Connect.

There is no threshold for individual investors if overseas investors want to buy A shares. However, if individual investors in the Mainland want to participate in the Hong Kong Stock Connect, the total balance of the securities account and the capital account must not be less than 5, RMB. This investment threshold is obviously a bit high for ordinary investors. However, in view of the investment risks of Hong Kong stocks, the regulatory authorities also hope to avoid the investment losses caused by individual investors who do not understand the blind entry into the market by raising the entry threshold.