Shanghai – Hong Kong Stock Connect is a mutual market access program through which Hong Kong and international investors can trade shares listed on the Shanghai Stock Exchange (SSE) via the Stock Exchange of Hong Kong (SEHK) and their existing clearing house.
As a member of SEHK, IB provides you with direct access to SSE and help you to trade with all listed products on the Shanghai Stock Exchange.
All current IB clients with Hong Kong stock trading permissions will be eligible to trade SSE securities through Shanghai-Hong Kong Stock Connect.
Shanghai – Hong Kong Stock Connect Products
Among the different types of SSE-listed securities, only A shares (shares in mainland China-based companies that trade on Chinese stock exchange) will be included in the initial stage of the Shanghai-Hong Kong Stock Connect implementation.
This includes all the constituent stocks of the SSE 180 Index, SSE 380 Index and all the SSE-listed A shares that are not included as constituent stocks of the relevant indices but have corresponding H shares listed on the SEHK.
Click here to see the product list and stock codes:
IB commission for trading SSE securities
Same as trading Hong Kong stocks, IB charges only 0.08% of trade value as a commission with a minimum CNH 15 per order.
Exchange fees, clearing fees and stamp duty are required by the exchange and will be changed separately.
The detailed fee rate can be find below. Comparison between fixed and tiered commission structures can also be found on our website.
Exchange fees, clearing fees and stamp duty
Fixed and tiered commission structure comparison
Clearing and settlement cycle
Stock settlement is within the same day (T) while cash settlement for SSE trades takes place one day later (T+1).
Ep: 77 Trading During Pre-Market & After Hours Sessions
Please be aware that the Forex settlement cycle is (T+2). Therefore, due to the unsynchronized settlement cycle, clients who exchange CNH themselves should execute the Forex trade one day prior to the stock trade (T-1) to avoid the extra day’s interest payment.
Trading hours for SSE (Hong Kong Time)
|Trading Session||SSE Trading Hours|
|Opening Call Auction||09:15 – 09:25|
|Continuous Auction (Morning)||09:30 – 11:30|
|Continuous Auction (Afternoon)||13:00 – 15:00|
09:20 – 09:25: SSE will not accept order cancellation
Trading price limit
For SSE securities, there is a general price limit of +/-10% (+/-5% for stocks under special treatment) based on the previous day closing price.
What Is After Hours Options Trading?
All orders must be at or within the price limit. The upper and lower price limit will remain the same intra-day.
Please also note that during the initial phase of the launch, SEHK intends to set the dynamic price checking at 3% (the percentage maybe adjusted periodically).
Shanghai - Hong Kong Stock Connect is subject to a maximum cross-boundary investment quota (i.e. Aggregate Quota) and a daily Quota.
The Aggregate Quota and Daily Quota through SSE is set at RMB 300 billion and RMB 13 billion respectively.
Are There Major Differences Between Regular and After Hours Sessions?
Both the Aggregate Quota and Daily Quota are applied on a “net buy” basis. Under this principle, customers are allowed to sell their SSE securities regardless of the quota balance. Once the Daily Quota drops to zero or is exceeded during a continuous auction session, NO further buy orders will be accepted. IB will inform clients once the quota limitation is reached.
2019 U.S. Holiday Schedule
SEHK will also publish the remaining balance of the Aggregate Quota and Daily Quota on the website.
For SSE securities, only limit orders (SSE limit orders can be matched at the specified or better price) will be accepted throughout the day. Meanwhile, all SSE securities are subject to the same trading board size, which is 100 shares.
Buy orders must be multiples of a board lot; odd lot trading is only available for sell orders. Order amendment is NOT allowed.
If you want to amend the order, you must cancel the order first and place a new order after the previous one is successfully cancelled.
Other trading limitations
a) Day trading is not allowed for the Mainland A shares market.
Therefore HK and overseas investors buying SSE securities on day-T can only sell the shares on or after T+1.
b) For SSE Securities, block trade facility will not be available.
c) For SSE Securities, shorting is not allowed during the initial phase of the launch.
d) IB will not be facilitating margin trading during the initial phase of the launch.
Where to learn more
Please refer to the following exchange website links for additional information regarding Shanghai – Hong Kong Stock Connect:
If you have any questions regarding Shanghai – Hong Kong Stock Connect, please contact IB customer service for further information.
Tel: +852-2156-7907 / +86(21)6086 8586
Email: [email protected]