China Connect
A share commission $0 A Share commission as low as ¥ 0
A shares

 

Our CNY margin financing interest rate is now as low as 3.88%. The service with leverage effect fits for over 1,000 eligible A shares of eligible stocks included in the northbound trading of Shanghai-Shenzhen Stock Connect, Hong Kong dollar-RMB dual-counter securities and RMB-counter Hong Kong-listed ETFs. Exchange-risk free.

 

Commission:

Transaction Amount (RMB)Online Buy Side Commission (RMB)Online Sell Side Commission (RMB)
¥30,000 or below 0 Transaction X 0.03%
Above ¥30,000 Transaction Amount X 0.03%

Footnote: Calculation of transaction amount is based on amalgamation order amount.

 

Margin Rate:

 

HKD margin interest rate is as low as 5.375%(P-0.5%)

RMB margin interest rate is 3.88%

P refers to the Prime rate of Standard Chartered Bank.

 

Terms and Conditions:

  1. This Promotion is valid from 1 June 2022 until further notice.
  2. This promotion is valid to online trading order only.
  3. Calculation of transaction amount is based on amalgamation order amount.
The Company reserves the right to alter these terms and conditions without prior notice and has final and irrevocable discretion in case of dispute.
Investment involves risks. Please refer to the Risk Disclosures Statement on our website at www.poems.com.hk.
You may contact our Customer Service Department at cs@phillip.com.hk or 2277 6555 to opt out of receiving marketing materials.

 

Hong Kong investors and foreign investors must apply BCAN before trading A shares。

 

What is BCAN？

''BCAN'' stands for ''Broker-to-Client Assigned Number'' and Client Identification Data (CID) that are needed to support trading under the Northbound Investor ID Model. The BCAN-CID will be submitted to Mainland exchanges/ChinaClear for investors who wish to conduct Northbound trading through Stock Connect on T-day.

Do Hong Kong and overseas investors have to apply for China Connect BCAN before trading A shares?

Yes, they can trade A shares via China Connect in their original stock accounts.

How to apply BCAN？

1. 登入POEMS平台後，於更改客戶資料(格C)中，按中華通「申請」按鈕。

china connect

 

2. 閱讀條款及細則後，於方格打勾，再按中華通「同意」按鈕。

BCAN

Can BCAN be applied via POEMS APP？

No.

Can BCAN be applied via mail?

Yes. Please download the application form and mail it back to Customer Service Department or your account executive.

How could we know the BCAN application is approved?

The "Success" status will be shown in the column of "User Info" in POEMS.
China Connect BCAN

Can all securities listed on the Shanghai Stock Exchange / Shenzhen Stock Exchange be traded through China Connect?

No. Please click and view Eligible Stocks of China Connect

Can all securities listed on the Shanghai Stock Exchange / Shenzhen Stock Exchange be traded with margin financing through China Connect?

No. Please click the list A shares with Margin Ratio

Account Opening

Hong Kong and Oversea investors could open an account with us for Shanghai/Shenzhen-Hong Kong Stock Connect trading, please click here for more details.

Trading Arrangement

Same as the current arrangement for trading Hong Kong stocks, investors who want to participate in Shanghai and Shenzhen Connect will trade through SEHK Participants(e.g.Securities brokers). Investors should check with their SEHK Participants on any specific conditions that their SEHK Participants may require them to satisfy before accepting their Northbound orders. Northbound trades are executed on the SSE/SZSE platform, and therefore follow the SSE/SZSE market practices in general. This Section explains the market practices that are applicable to Northbound and Southbound under Shanghai and Shenzhen Connect.
It is contemplated that SEHK, SSE and SZSE would reserve the right to suspend Shanghai Connect and/or Shenzhen Connect respectively if necessary for ensuring an orderly and fair market and that risks are managed prudently. Suspension may be executed for a specific stock or all stocks of the relevant market(s). Consent from the relevant regulator would be sought before a suspension is triggered.

Trading Comparision between Shanghai and Shenzhen Stock Connect A shares and Hong Kong Stock

  Shanghai Stock Connect、 Shenzhen Stock Connect A Shares Hong Kong Stocks
Investment Quota Subject to a Daily Quota
RMB 13 billion for each market		 N/A
Settlement Currency Renminbi
Phillip could provide preferential exchange rate of Renminbi for money settlement)		 Hong Kong Dollar or Renminbi
Stock Code 6 digits 5 digits at most
Board Lot 100 shares per lot Customized by the listed company
Settlement Date Stock: On T day；
Money: On T+1 day		 Stock and Money: T+2 day
Order Types Only accept limit orderscan be matched at the specified price or a better price） at-auction（market price）, limit and others, 5 types of order in total
Order amendment Not allowed
(The order must be cancelled and input again.)		 Allowed.
Tick Size Uniformly at RMB 0.01 Tick Size differ in the securities
Price Limit
  • general price limit of ±10% based on previous closing price
  • ±5% based on previous closing price for stocks under special treatment (i.e. ST and *ST stocks) under risk alert
  • The upper and lower price limit will remain the same intra-day
 No
Dynamic price checking
  • To prevent mischievous behavior towards the use of the quota，SEHK has put in place a dynamic price checking for buy orders，Dynamic price checking will be applied throughout the trading day, from the 5-minute input period before the start of Opening Call Auction until the end of the afternoon Continuous
    Auction (until the end of the Closing Call Auction for SZSE).
  • Buy orders with input prices lower than the current best bid (or last traded price in the absence of current best bid, or previous closing price in the absence of both current best bid and last traded price) beyond a prescribed percentage will be rejected by CSC.
  • The dynamic price checking at 3% during the initial phase and may be adjusted from time to time subject to market conditions.
 No
Maximum order size per transaction 1 million shares 3,000 lots
Odd Lot

Only available for sell orders and all odd lots should be sold in one single order.
Board lot and odd lot orders are both matched on the same platform on SSE 16 and SZSE, and subject to the same share price.

 Odd lot could be only matched and sold on the specific platform through account executives. Odd lot trading may likely be executed at a price which is not as favourable as the prevailing market price.
Turnaround Trading
("Day trade")		 Not allowed Allowed
Block Trades Not allowed Allowed
Manual Trades Not available Available

Quota

Trading under Shanghai and Shenzhen Connect will be subject to a Daily Quota.


Daily Quota is set at RMB 13 billion for each of Shanghai Connect and Shenzhen Connect，Daily Quota Balance will be updated on the HKEX website every minute。

Daily Quota Balance = Daily Quota – Buy Orders + Sell Trades + Adjustments
  • The Daily Quota is applied on a “net buy” basis.
  • Investors are always allowed to sell their cross-boundary securities regardless of the quota balance.
  • The Daily Quota will be reset every day. Unused Daily Quota will NOT be carried over to next day’s Daily Quota.
  • If the Northbound Daily Quota Balance drops to zero or the Daily Quota is exceeded during the opening call auction session, new buy orders will be rejected.
  • Once the Northbound Daily Quota Balance drops to zero or the Daily Quota is exceeded during a continuous auction session, no further buy orders will be accepted for the remainder of the day.
  • Buy orders already accepted will not be affected by the Daily Quota being used up and will remain on the order book of SSE and SZSE respectively unless otherwise cancelled by relevant SEHK Participants.

Pre-trade checking


In general, Mainland investors are only allowed to sell SSE-listed and SZSE-listed securities which are available in their stock accounts at the end of the previous day. Based on the shareholdings of an investor, SSE/SZSE will reject a sell order if the investor does not have sufficient shares in his account.

SEHK applies similar checking on all Northbound sell orders to ensure there is no overselling by individual SEHK Participants. Under SEHK’s pre-trade checking model, sell orders will be rejected if the cumulative sell quantity for the day is higher than the SEHK Participant’s shareholding position at market open.  Therefore, when placing sell orders, investors must ensure they have sufficient shares in their accounts opened with the SEHK Participant who acts as the selling broker. If the shares are kept in an account opened with another SEHK Participant or a custodian, investors must first transfer the shares to the selling SEHK Participant on T-1 in order to sell their shares on T day. A Special Segregated Account (“SPSA”) arrangement as mentioned below has been put in place, in which case investors whose Connect Securities are maintained with custodians may sell their Connect Securities without having to pre-deliver the Connect Securities from their custodians to their executing brokers. Please read the information book for investor to get more details.

Shanghai and Shenzhen Stock Connect 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.

Trading hours Shanghai Stock Connect Shenzhen Stock Connect
SSE Trading HoursTime for SEHK Participants
to input Northbound orders		SZSE Trading HoursTime for SEHK Participants
to input Northbound orders
Opening Call Auction 09:15-09:25 09:10-11:30 09:15-09:25 09:10-11:30
Continuous Auction (Morning) 09:30-11:30 09:30-11:30
Continuous Auction (Afternoon) 13:00-14:57 (to be commenced on 20 Aug 2018) 12:55-15:00 13:00-14:57 12:55-15:00
Pre-close / Closing Call Auction Session 14:57-15:00 (to be commenced on 20 Aug 2018) 14:57-15:00
Note
  1. 09:20 – 09:25, 14:57 – 15:00: : SSE will not accept order cancellation
  2. Orders that are not executed during the opening call auction session will automatically enter the continuous auction session
  3. 09:10 – 09:15; 09:25 – 09:30; 12:55 – 13:00: Orders and order cancellations can be accepted by SEHK but will not be processed by SSE until SSE’s market open
  4. Order cancellations will not be processed in the system of SEHK immediately in the time slots mentioned above. Those cancellations will be processed together with original orders by SSE accordingly. Therefore, those orders may be executed before the order cancellations. To avoid misunderstanding, the company will not accept order cancellation during the time slots mentioned above (09:10-09:15; 09:25-09:30; 12:55-13:00).
  1. 09:20 – 09:25, 14:57 – 15:00: SZSE will not accept order cancellation
  2. 09:10 – 09:15; 09:25 – 09:30; 12:55 – 13:00: Orders and order cancellations can be accepted by SEHK but will not be processed by SZSE until SZSE’s market open
  3. Any buy or sell orders not executed during the opening call auction session will automatically enter the continuous auction session. Any buy or sell orders not executed during the continuous auction session will automatically enter the closing call auction session.

Holiday、Half trading day、Severe Weather Conditions

Holiday

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.
The following table illustrates the holiday arrangement of Northbound trading of SSE/SZSE Securities:holiday arrangement

Half day trading

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

The trading arrangement under severe weather conditions is as follows:
Severe Weather Conditions
For details of the existing typhoon/rainstorm procedure for the Hong Kong market, please refer to the HKEXwebsite.

Shanghai and Shenzhen Stock Connect Trading Calendar

Eligible Stocks for China Connect

Certain stocks listed on the SSE market (“SSE Securities”) can be traded , including all the constituent stocks from time to time of:
  1. constituent stocks of the SSE A Share Index and the SZSE Composite Index which have a market capitalisation of RMB5 billion or above and meet certain requirements such as liquidity criteria
  2. SSE/SZSE-listed stocks of companies which have issued both A-shares and H-shares.
  3. Initial List of ETFs Eligible for Northbound Trading
Except the following:
    1. SSE-listed/SZSE-listed shares which are not traded in RMB; and
    2. SSE-listed/SZSE-listed shares which are included in the alert board. If it is subsequently removed from the risk alert board, it will be accepted as a SSE / SZSE Security if it remains as a constituent stock of the relevant indices or if its corresponding H share continues to be listed and traded on the SEHK (as appropriate).
    3. Only institutional professional investors are eligible to trade shares that are listed on the ChiNext Board of SZSE under Northbound trading at the initial stage of Shenzhen Connect,
    4. Initial Public Offering
The full list of SSE Securities will be published on the HKEx website, which will be updated from time to time with advanced notice to the market. Reference link:
    Eligible Stocks for China Connect

    The information above are provided by HKEX. The latest version released by HKEX shall prevail in case of any changes.

    Important Notes and Specific Risks of trading via Shanghai-Hong Kong Stock Connect and/or Shenzhen-Hong Hong Stock Connect (China Connect), please click here，or visit HKEX website to view Information Book for Investor and Frequently Asked Questions

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