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- China Connect – Shanghai and Shenzhen Securities
We are your go-to-bank for a comprehensive RMB solution!
Following the launch of the China Connect, Citibank® now provides account opening and A-shares trading services to help clients capitalize on the new investment opportunities.
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Key details of China Connect
| Eligible investors |
*Citibank does not offer shares listed on the ChiNext Board of SZSE Effective from 25 July 2022, Citibank will block Mainland investors^ from applying China Connect stock account ^ For definition, please refer to the HKEX website |
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| Eligible stocks | China Connect - Shanghai Market
China Connect - Shenzhen Market
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| Non-eligible stocks |
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| Trading Day | Only operate on a day which is a trading day of both involved markets | |||||||||||||||||||||||||||||||
| Trading hours | China Connect - Shanghai Market
China Connect - Shenzhen Market
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| Trading currency | RMB | |||||||||||||||||||||||||||||||
| Price limit system | Price limit of ±10% based on previous closing price; Price limit of ±5% based on previous closing price for stocks under risk warning | |||||||||||||||||||||||||||||||
| Stock code, LOT size, max order size & tick size* |
* The stock codes of SSE &SZSE Securities are 6 digits and investors should use SSE & SZSE stock codes when placing orders. All SSE & SZSE Securities are subject to the same trading board lot size, which is 100 shares (buy orders must be in board lot). Odd lot trading is only available for sell orders and all odd lots should be sold in one single order. It is common that a board lot buy order may be matched with different odd lot sell orders, resulting in odd lot trades. It should be noted that unlike Hong Kong, board lot and odd lot orders are both matched on the same platform on SSE & SZSE, and subject to the same share price. The maximum order size is 1 million shares and the tick size is uniformly set at RMB 0.01.
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| Quota |
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| Settlement cycle | Both our securities settlement & money settlement are on Today | |||||||||||||||||||||||||||||||
The above information is sourced from the prevailing information provided by HKEx and may be subject to amendment as the implementation of China Connect and issuance of the relevant regulations and rules progresses.
Trading rules
| Quota |
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| Orders |
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| Trading or investment activities which are not allowed |
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Severe weather conditions
Below are the contingency arrangements under severe weather conditions:
| Scenarios | China Connect | Money Settlement (for T-1 position) |
Securities Settlement (for T position) |
|---|---|---|---|
| T8/ Black rainstorm issued before HK market opens (i.e. 9:00 am.) and discontinued after 12:00 noon | Not open | No | N/A |
| T8 issued between 9:00 a.m. and 9:15 a.m. | Not open | Yes | |
| T8 issued after SSE/SZSE market opens(i.e. 9:15 a.m.) | Trading will continue for 15 minutes after T8 issuance, thereafter, only order cancelllation is allowed till SSE/SZSE market close | Yes | Yes |
| Black rainstorm issued after HK market opens (i.e. 9:00 a.m.) | Trading continues as normal |
Yes | Yes |
| T8/ Black rainstorm discontinued at or before 12:00 noon | Trading resumes after 2 hours |
Postpone to 3 p.m. |
The above information is sourced from the prevailing information provided by HKEx and may be subject to amendment as the implementation of China Connect issuance of the relevant regulations and rules progresses.
Market Outlook
Positive outlook on the H-share market
Despite the steady fall of the Hang Seng China AH Premium Index, which indicates a narrowing of the gap between A and H shares, some SZ-HK dual listed companies are still expected to trade with A-share premium.
Expect net fund inflows into HK
Fund inflows are expected to impact HK liquidity more than A-shares based on the past experience of SH-HK Stock Connect. Citi analysts remain positive about MSCI China and HSCEI and neutral on CSI300.
Wider sector exposure
SZ-HK Connect is expected to have a wider stock coverage from Main Board, SME Board and ChiNext Board# than SH-HK Stock Connect.
- SZ-HK Stock Connect: Manufacturing and I.T. are the major sectors
- SH-HK Stock Connect: Industrials, Consumer Discretionary and Materials are the major sectors
# Citibank does not offer shares listed on the ChiNext Board of SZ-HK stock Connect.
Beneficial sectors from SZ-HK Stock Connect
- Brokers, Insurance & Banks;
- SZ-listed consumption leaders & manufacturing innovators
- HK-listed IT leaders & small-to-medium economic-transition-favor listed companies
Points to note
- The settlement currency for trading Shanghai and Shenzhen A Shares is Renminbi (RMB).
- Both our securities settlement & money settlement for Northbound trading are on T day.
Trading rules
Under China Connect, Hong Kong and overseas investors will be subject to the following fees and levies imposed by the SSE, SZSE, ChinaClear, HKSCC or the relevant Mainland authority when they trade and settle SSE Securities and SZSE Securities:
| Items | Rate | Paid by | Charged by |
| Handling Fee | 0.00341% of the consideration of a transaction per side | Both buy and sell | SSE |
| Securities Management Fee | 0.002% of the consideration of a transaction per side | Both buy and sell | CSRC |
| Transfer Fee | 0.001% of the consideration of a transaction per side | Both buy and sell | ChinaClear Shanghai / ChinaClear Shenzhen |
| 0.002% of the consideration of a transaction per side | Both buy and sell | HKSCC | |
| Stamp Duty | 0.05% of the consideration of a transaction on the seller | Buy side only | SAT |
The following is an example illustrating the calculation of the revised fees for Northbound Trading and Clearing:
Assume that on T day, a Clearing Participant has to clear Northbound Sell Trades with details as follows:
Trade Quantity: 300 shares Trade Price: ¥ 10 per share
| Fee Type | Description | Formula | Amount* |
|---|---|---|---|
| Handling Fee | 0.00341% of the consideration of a transaction per side |
300 X ¥ 10 X 0.00341% = ¥ 0.1023 |
¥ 0.10 |
| Securities Management Fee |
0.002% of the consideration of the Sell Trade |
300 X ¥ 10 X 0.002% = ¥ 0.06 |
¥ 0.06 |
| Transfer Fee | 0.001% of the consideration of the Sell Trade to be charged under ChinaClear's Shanghai-Hong Kong Stock Connect Rules |
300 X ¥ 10 X 0.001% = ¥ 0.03 |
¥ 0.03 |
| 0.002% of the consideration of the Sell Trade to be charged under the General Rules of CCASS |
300 X ¥ 10 X 0.002% = ¥ 0.06 |
¥ 0.06 | |
| Stamp Duty | 0.05% of the consideration of the Sale Trade (imposed only on the seller) | 300 X ¥ 10 X 0.05% = ¥ 1.50 |
¥ 1.50 |
| Total transaction cost to settle the Sell Trade | ¥ 1.75 | ||
*Note: Fees are rounded to the nearest cent.
Dividend tax is withheld upon dividend payment.
For more details about China Connect and related information, please visit HKEx website at http://www.hkex.com.hk
The above information is sourced from the prevailing information provided by HKEx and may be subject to amendment as the implementation of China Connect and issuance of the relevant regulations and rules progresses.
You can simply set up a price alert within 2 steps to monitor the market changes!
Step:1 |
Log onto Citibank® Online then click Wealth > Stock Services > Stock Alerts > Add New Alert |
Fill in all he required information and "Confirm"
New-to-bank Clients
Please click here or call our Application hotline (852) 2860 0262(852) 2860 0262
Existing Clients
3 simple steps to open a stock account online
Logon to www.citibank.com.hk > Wealth > Stock Services > Apply for Stock Account.
Complete 6 questions in the Suitability Questionnaire to ensure you are suitable to open a stock account, accept the Terms and Conditions, and then verify details.
Application comfirmed. Keep the "Application Reference Number" acknowledgement for future reference.
You are also warmly welcome to open a stock account at any Citibank® branch.
Important Disclaimer:Important Disclaimer:
For the latest and more details of the trading mechanism, you may refer to HKEx official announcement and frequently asked questions.
You should seek advice from your professional advisors as to your particular taxable position, including but not limited to estate duty and withholding tax that might arise from investing in overseas products. This material is for information purposes only and is not intended to constitute any offer any offer or solicitation or advice to buy or sell any security. Investments are not bank deposits and are not obligations of, guaranteed or insured by Citibank (Hong Kong) Limited, Citibank, N.A.,organized under the laws of U.S.A. with limited liability Citigroup Inc. or any of its affiliates or subsidiaries, or by any local government or insurance agency, and involve risks, including the possible loss of the principal amount invested. Share prices may go down as well as up. Investment products are not available for U.S. persons and might only be applicable to limited jurisdiction. Any person considering an investment should seek independent advice on the suitability or otherwise of the particular investment.
Although information has been obtained from and is based upon sources that Citibank believes to be reliable, Citibank does not guarantee its accuracy and it may be incomplete and condensed. All opinions, projections and estimates constitute the judgment of the author as of the date of publication and are subject to change without notice. Prices and availability of financial instruments also are subject to change without notice. Past performance is no guarantee of future results.
Major Risk Disclosure of China Connect:Major Risk Disclosure of China Connect:
(a) Trading under China Connect is subject to a cross-boundary investment daily quota; (b) Any Northbound trading under China Connect will not be covered by Hong Kong's Investor Compensation Fund; (c) China Connect will only operate on days when both markets are open for trading and when banks in both markets are open on the corresponding settlement days. You should take note of the days China Connect is available for trading and decide according to your own risk tolerance capability whether or not to take on the risk of price fluctuations in A-shares during the time when trading on China Connect is not available; (d) Trading under China Connect is subject to currency risks; and (e) You should familiarize yourself with and observe the eligibility restrictions in relation to China Connect and the applicable Mainland China laws and regulations concerning Northbound trading and in particular, the shareholding restrictions imposed and your disclosure obligations thereunder. The above statements cannot disclose all the risks involved. You should read and understand the Terms and Conditions and the full risk disclosures.