Shanghai-Hong Kong Stock Connect
Shanghai-Hong Kong Stock Connect refers to the mechanism through which overseas investors are allowed to buy and sell stocks listed in Shanghai through the Hong Kong Stock Exchange. The opening of Shanghai-Hong Kong Stock Connect provides overseas investors with a more convenient channel to invest in the Shanghai stock market.
Definition: Shanghai-Hong Kong Stock Connect (SHSC) allows overseas investors to trade stocks listed on the Shanghai Stock Exchange (SSE) through the Hong Kong Stock Exchange (HKEX). The launch of SHSC provides a more convenient channel for overseas investors to invest in the Shanghai stock market.
Origin: SHSC was officially launched on November 17, 2014. This was a significant step in the opening up of China's capital markets. The mechanism aims to promote interconnectivity between the mainland and Hong Kong capital markets, enhancing market liquidity and internationalization.
Categories and Features: SHSC mainly includes two categories: 1. SHSC Buy, where overseas investors buy stocks listed on the SSE through HKEX; 2. SHSC Sell, where overseas investors sell stocks listed on the SSE through HKEX. Its features include: 1. A wide range of investment options, covering most stocks listed on the SSE; 2. Trading hours synchronized with the SSE; 3. Investment quotas, which are gradually being relaxed.
Specific Cases: Case 1: An overseas investor bought shares of Ping An Insurance (601318) through SHSC and benefited from the stock price increase. Case 2: An international fund invested in Kweichow Moutai (600519) through SHSC and sold the shares after the stock price reached the target, successfully achieving investment returns.
Common Questions: 1. What is the investment quota for SHSC? Answer: The daily quota for SHSC is RMB 52 billion. 2. What are the trading hours for SHSC? Answer: The trading hours for SHSC are synchronized with the SSE, from 9:30 to 11:30 in the morning and from 13:00 to 15:00 in the afternoon on each trading day.
