Shanghai Connect	Shenzhen Connect
Introduction	Shanghai-Hong Kong Stock Connect is a securities trading and clearing links programme 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. The programme comprises northbound trading and southbound trading.	Shenzhen-Hong Kong Stock Connect is a securities trading and clearing links programme developed by the Stock Exchange of Hong Kong Limited (SEHK), Shenzhen Stock Exchange (SZSE), Hong Kong Securities Clearing Company Limited (HKSCC) and China Securities Depository and Clearing Corporation Limited (ChinaClear), aiming to achieve a breakthrough in mutual market access between the Mainland and Hong Kong. The programme comprises northbound trading and southbound trading.
Daily Quota(Northbound)	RMB 13 Billion
Eligible Stocks	For the list of Eligible Stocks，Please visit HKEx
Trading Currency	RMB
Order Types	Limit Orders
Tick Size	RMB 0.01
Price Limit	±10% of previous closing price (and ±5% for stocks under risk alert)
Lot Size	100 shares
Max Order Size	1 million shares
Odd-lot	Only for sell order (sold in one single order)
Money Settlement	T+1
Securities Settlement	T
Day Trading	Not Allowed
Block Trades	Not Allowed

Trading Hours

Northbound trading follows SSE’s and SZSE’s trading hours. However, SEHK will accept Northbound orders from SEHK Participants five minutes before the Mainland market sessions open in the morning and in the afternoon.

Shanghai Connect	Shenzhen Connect
Opening Call Auction: 9:15 a.m. - 9:25 a.m. (9:20 a.m. - 9:25 a.m. No order cancellation allowed) Continuous Auction: 9:30 a.m. - 11:30 a.m. 1:00 p.m. - 2:57 p.m. EPs can input orders 5 minutes before the commencement of Opening Call Auction and Continuous Auction	Opening Call Auction: 9:15 a.m. - 9:25 a.m. (9:20 a.m. - 9:25 a.m. No order cancellation allowed) Continuous Auction: 9:30 a.m. - 11:30 a.m. 1:00 p.m. - 2:57 p.m. Continuous Auction: (2:57 p.m. - 3:00 p.m. No order cancellation allowed) EPs can input orders 5 minutes before the commencement of Opening Call Auction and Continuous Auction

Fees and Levies

Under Shanghai and Shenzhen Connect, Hong Kong and overseas investors will be subject to the following fees and levies imposed by SSE, SZSE, ChinaClear, HKSCC or the relevant Mainland authority when they trade and settle SSE Securities and SZSE Securities:

Items	Rate	Charged by
Handling Fee	0.00487% of the consideration of a transaction per side	SSE / SZSE
Securities Management Fee	0.002% of the consideration of a transaction per side	CSRC
Transfer Fee	0.002% of the consideration of a transaction per side 0.002% of the consideration of a transaction per side	ChinaClear HKSCC
Stamp Duty	0.1% of the consideration of a transaction on the seller	SAT

Holiday Arrangement

Until special banking arrangements are established, investors will only be allowed to trade on the other market on days where Hong Kong and Mainland markets are both open for trading, and banking services are available in both Hong Kong and Mainland markets on the corresponding settlement days. This arrangement is essential in ensuring that investors and brokers will have the necessary banking support on the relevant settlement days when they will be required to make payments.

	Mainland	Hong Kong	Open for Northbound Trading
Day-1	Business Day	Business Day	Yes
Day-2	Business Day	Business Day	No	HK market closes on money settlement day
Day-3	Business Day		No	HK market closes on trading day
Day-4	Public Holiday	Business Day	No	Mainland market closes

If a Northbound trading day is a half trading day in the Hong Kong market, Northbound trading will continue until respective Connect Market is closed. Please refer to the HKEX website for the Northbound trading calendar for Shanghai Connect Northbound trading and Shenzhen Connect Northbound trading.


Severe Weather Conditions

Scenarios	Northbound Trading of SSE/ SZSE Securities	Money Settlement (For T-1 position)	Securities Settlement (For T position)
T8/Black rainstorm issued before HK market opens (i.e. 9:00a.m.)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.m.)	Trading will continue for 15 minutes after T8 issuance, thereafter, only order cancellation 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 or before 12:00 noon	Trading resumes after 2 hours	Postpone to 3 p.m.	Yes

Disclosure Obligations

According to the Law of the PRC on Securities, when an investor holds or controls up to 5% of the issued shares of a Mainland listed company, the investor is required to report in writing to the CSRC and the relevant exchange, and inform the listed company within three working days. The investor is not allowed to continue purchasing or selling shares in that listed company during those three days.
For such investor, every time a change in his shareholding reaches 5%, he is required to make disclosure (in the same manner as mentioned above) within three working days. From the day the disclosure obligation arises to two working days after the disclosure is made, the investor may not buy or sell the shares in the relevant Mainland listed company.
If a change in shareholding of the investor is less than 5% but results in the shares held or controlled by him falling below 5% of the relevant Mainland listed company, the investor is required to disclose the information within three working days.

Shareholding Restrictions on SSE and SZSE Securities

Under current PRC rules, a single foreign investor’s shareholding in a listed company (regardless of the channels through which shares in such listed company are held, including through QFII, RQFII and Shanghai and Shenzhen Connect) is not allowed to exceed 10% of the company’s total issued shares, while all foreign investors’ shareholding in the A shares of a listed company is not allowed to exceed 30% of its total issued shares.
When the aggregate foreign shareholding of an individual A share reaches 26%, SSE or SZSE, as the case may be, will publish a notice on its website:
http://www.sse.com.cn/disclosure/diclosure/qfii (SSE)
http://www.szse.cn/main/disclosure/news/qfii/SZSE

If the aggregate foreign shareholding exceeds the 30% threshold, the foreign investors concerned will be requested to sell the shares on a last-in-first-out basis within five trading days.

SSE Securities purchased through Shanghai Connect and SZSE Securities purchased through Shenzhen Connect will be considered in totality with those purchased by QFII and RQFII, and subject to the same foreign shareholding restriction. Once SSE/SZSE informs SEHK that the aggregate foreign shareholding of an SSE/SZSE Security reaches 28%, further Northbound buy orders in that SSE/SZSE Security will not be allowed, until the aggregate foreign shareholding of that SSE/SZSE Security is sold down to 26%. If the 30% threshold is exceeded due to Shanghai Connect or Shenzhen Connect, HKEX will identify the relevant SEHK Participant and require it to follow the forced-sale requirements.

HKEX will publish a notification on its website to inform the market about suspension of buy orders if the shareholding limit goes beyond 28% and about the resumption of buy orders if the shareholding drops below 26%.

Foreign investors can continue to sell the A share whose aggregate foreign shareholding has reached the 30% threshold. If such selling activities cause the aggregate foreign shareholding to drop below the 30% threshold within 5 trading days, EPs who were subject to the forced-sale requirement may submit an application to SEHK for a forced-sale exemption.

SEHK Participants should monitor their clients’ shareholdings in SSE Securities and SZSE Securities and remind their clients to comply with the 10% single foreign investor’s restriction policy, and alert them of the possibility of the forced-sale arrangement.