1. What is Shanghai-Hong Kong Stock Connect?
  Shanghai-Hong Kong Stock Connect is a securities trading and clearing links programme to be developed by Hong Kong Exchanges and Clearing Limited (HKEx), Shanghai Stock Exchange (SSE) and China Securities Depository and Clearing Corporation Limited (ChinaClear), aiming to achieve a breakthrough in mutual market access between the Mainland and Hong Kong. Under Shanghai-Hong Kong Stock Connect, The Stock Exchange of Hong Kong Limited (SEHK), a wholly-owned subsidiary of HKEx, and SSE will establish mutual order-routing connectivity and related technical infrastructure to enable investors of their respective market to trade designated equity securities listed in the other’s market.
The Hong Kong Securities Clearing Company Limited (HKSCC), also a wholly-owned subsidiary of HKEx, and ChinaClear will be responsible for the clearing, settlement and the provision of depository, nominee and other related services of the trades executed by their respective market participants and investors.
  2. Can investors sell the stock which has been taken out from the Shanghai-Hong Kong Stock Connect eligible stock list?
  Investors can sell the stock but cannot buy the stock again.
  3. What is the pre-trade checking requirement?
  Investors are only allowed to sell A shares which are available in their stock accounts at the end of the previous day. The sell order will be rejected if the investor does not have sufficient shares in his account.
  4. How would SSE Securities under Shanghai-Hong Kong Stock Connect be custodized for Hong Kong and overseas investors? Can investors hold SSE Securities acquired through Shanghai-Hong Kong Stock Connect in physical form?
  Since SSE Securities are issued in scripless form, physical deposits and withdrawals of SSE Securities into/from the CCASS Depository will not be available.
  5. Can investors participating in Shanghai-Hong Kong Stock Connect participate in the initial public offerings (IPO) in the other market?
  It is currently contemplated that Shanghai-Hong Kong Stock Connect will not support initial public offering. HKEx will further inform the market of the arrangements pertaining to other depository and nominee services under the programme, including for instance secondary market fund raising events.
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