In this video, 9 things to know before you
start trading. You can find out more about
the Shanghai Hong Kong Stock Connect
1. What is Shanghai - Hong Kong stock connect?
Shanghai-Hong Kong Stock Connect is a joint
project between the Shanghai Stock Exchange
(SSE) and Hong Kong's Exchanges and Clearing
Ltd and China Securities Depository and Clearing
Corporation Ltd. It allows investors in Hong
Kong and Mainland China to trade cross-border
shares listed in the other's market via exchange
and clearing house in their home market.It
means that overseas investors like clients
of Phillip Securities can trade China 'A'
shares in the SSE
2. What are A shares A shares are shares denominated
in Chinese Yuan that are purchased and traded
on the Shanghai and Shenzhen stock exchanges.
What are B shares? B shares refers to shares
that are traded in foreign currencies USD
for Shanghai Stock Exchange and HKD for Shenzhen
Stock Exchange. It is available mainly for
foreigner to invest in when A shares were
restricted to foreign investing.
3. What is HSI AH premium. The Hang Seng China
AH Premium Index (“HSAHP”) tracks the
average price difference of A shares over
H shares for the largest and most liquid Chinese
companies with both A-share and H-share listings
(“AH Companies”). The higher the index,
the higher premium of A-shares over H-shares,
and vice-versa.
4. Who are the eligible investors? All overseas
investors will be allowed to trade SSE Securities
through Shanghai-Hong Kong Stock Connect,
which is also known as Northbound Trading.
What are the eligible securities? Only A shares
listed in Shanghai Stock exchange will be
included in the initial stage. Hong Kong and
overseas investors will be able to trade certain
stocks listed on the SSE. The shares must
also be denominated in CNY and not included
in “Risk Alert Board”. IPOs are currently
not supported by the scheme.
6. Trading arrangements. Buy order for Northbound
trades Securities is set at a price limit
below its current best bid price beyond 3%*.
The percentage may be adjusted from time to
time subject to market conditions. For example:
For all purchases, if the bid price is CNY1,
the lowest price limit allowed will be set
at CNY 0.97.
Price limit of a ±10% based on previous closing
price.and a ±5% for stocks under special
treatment in the risk alert board
All orders input for SSE Securities must be
at or within the price limit. Any orders with
price beyond the price limit will be rejected
by SSE. The upper and lower price limit will
remain the same intra-day.
7. Trading details. You can visit www.poems.com.sg/globalmarkets/china
for more information
8 Important things to note. Intra-day trading
is not allowed for China A shares market.
Therefore, Hong Kong and overseas investors
buying SSE Securities on T-day can only sell
the shares on and after T+1. Selected counters
are marginable under Phillip Margin (M) Accounts
and Share Financing (V) Accounts
9 How do i start trading china a shares? Go
to www.poems.com.sg/p2 and login using your
POEMS account and password
Go to ‘Trade (LP2)’, select the SSE-A
from the dropdown list
Click on the counter (last done price), buy
price or sell price
- Price will display at Trade widget
- Key in the quantity
- Gross value is auto calculated
- Click on Buy or Sell (or short Sell)
- Key in password @ confirmation page
Check that your order is submitted
Thank you for watching this video. Feel free
to contact us at 65324266 or 6339 1744 and
email us at GMD_china@phillip.com.sg. You
may also visit our website at www.poems.com.sg/globalmarkets/china
