Trading China A Shares

What is Shenzhen/Shanghai-Hong Kong Stock Connect?

Shenzhen/Shanghai-Hong Kong Stock Connect is a joint project between the Shenzhen Stock Exchange (SZSE)/Shanghai Stock Exchange (SSE) and The Stock Exchange of Hong Kong Limited (SEHK). It allows investors to trade cross-border into specific stocks listed in the other’s market. It also allows overseas investors and thus Phillip Securities clients to trade China ‘A’ shares in the SZSE/SSE.

Which China ‘A’ shares can I trade?

‘A’ shares that are

  1. Index constituents of the SSE 180 Index , SSE 380 Index, SZSE Main Index, SZSE SME Index, SZSE ChiNext Index* or
  2. Dual-listed on both SZSE/SSE and HKex

*The ChiNext Board opens to institional professional investors initially

The shares must also be denominated in RMB and not included in “Risk Alert Board”.

Investors will not be allowed to buy the share, but will only be allowed to sell it in the event a stock subsequently:

  • Ceases to be a constituent stock, or
  • is added to “Risk Alert Board”, or
  • its ‘H’ Share cease to trade on HKex;
Can I do short selling, margin financing and stock borrowing & lending on SZSE/SSE Securities

Stock Borrowing & Lending of SZSE/SSE China A-Shares for foreign retail investors was recently approved and introduced by the relevant exchange authorities. We look forward to providing this service to our clients once it is ready. Naked short selling is still not permitted, and for Margin Financing, kindly click SZSE/SSE Trading Details to find out more.

Does SZSE/SSE price limit apply under Shenzhen/Shanghai-Hong Kong Stock Connect?

Yes. For SZSE/SSE Securities, there is a general price limit of a ±10% (and a ±5% for stocks under special treatment (i.e. ST and *ST stocks) in the risk alert board) based on previous closing price.

All orders input for SZSE/SSE Securities must be within the price limit. Any orders with price beyond the price limit will be rejected by SZSE/SSE. The upper and lower price limit will remain the same intra-day.

Note: ST stocks refers to: stocks that have been resumed from suspension for listing; or stocks that have been relisted; or stocks that have suffered from other significant risks. *ST stocks refers to stocks with the risks of being delisted.

Are there any disclosure obligations for trading SZSE/SSE-listed Shares?

Yes. Any investors holding or controlling shares more than 5% from the same issuer must disclose his interest within 3 working days. During which, the said investor cannot buy nor sell the shares until the interest is made known.

What happens during severe weather conditions in Shenzhen, Shanghai or HK?

Should Shenzhen, Shanghai or Hong Kong announce suspension of market due to severe weather (ie. Typhoon Signal above 8 and/or Black rainstorm), no trade will take place until an official announcement for trading resumption. Please refer to ShenzhenShanghai or Hong Kong Stock exchange for any announcements on market suspension on the day.

Do I need to have a broker in HK?

No, simply call your preferred Phillip representative now, or click here to open an account.