Trading Arrangement Overview

To facilitate Hong Kong and overseas investors trading in Shanghai Stock Exchange Securities through Shanghai Connect (i.e. Northbound trading), SEHK has established an SEHK Subsidiary in Shanghai, whose principal function is to receive orders to trade in Shanghai Stock Exchange Securities from SEHK Participants and route them onto Shanghai Stock Exchange’s trading platform for matching and execution on Shanghai Stock Exchange. Upon trade execution, trade confirmation received from Shanghai Stock Exchange will be sent to SEHK Partcipants.

For Shenzhen Connect, SEHK has established another SEHK Subsidiary in Qianhai Shenzhen, whose principal function is to receive orders to trade in Shenzhen Stock Exchange Securities from SEHK Participants and route them onto Shenzhen Stock Exchange’s trading platform for matching and execution on Shenzhen Stock Exchange.

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. 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 Shanghai Stock Exchange/Shenzhen Stock Exchange platform, and therefore follow the Shanghai Stock Exchange/Shenzhen Stock Exchange market practices in general. This Section explains the market practices that are applicable to Northbound and Southbound under Shanghai and Shenzhen Connect.

Shanghai Connect / Shenzhen Connect Information Book