How do I place Shanghai A Shares order via WebTrade?

1. Log into your KGI Asia Trading Account.
2. Select “Shanghai A” in “Securities Trading”.
3. Fill in the details of your order request.
4. Click “Preview” to double check your entries before you confirm.

Note:

1. You have to use the same Investor ID to trade Shanghai A Share./li>
2. Shanghai A Shares orders currently can be placed via WebTrade or our 24-hour InvestLine at (852) 2878-5555.

See Trade Demo for an interactive guide to WebTrade.

What is the next step after I place an order?

Once you place an order, WebTrade will provide you a summary of your order and a reference number which represents the confirmation that your order has been accepted by us. Please STAY connected to WebTrade until you have received the reference number. After that, you can always check the status of your order by clicking “Securities Trading” > “Order Status”.

See Trade Demo for an interactive guide to WebTrade.

Can I amend an order for Shanghai A Shares?

Yes, you can make amendments to any trading orders.

For more, in order to facilitate the flow of order placement, we have created a function in our system to automatically “cancel” expired trading orders and place new ones directly to Shanghai Stock Exchange.

Please note the if your order has been partially executed or the outstanding quantity is not the multiples of its board lot size, no amendments will be accepted on WebTrade.

How do I amend/cancel my order?

You can amend/cancel the quantity and price of your orders if they have not yet been fully executed.

To do so, click on the respective “Amend” / “Cancel” link on the Order Status table under WebTrade > “Securities Trading”, and enter your changes in the appropriate boxes and click “Submit”. 

*Please note the if your order has been partially executed or the outstanding quantity is not the multiples of its board lot size, no amendments will be accepted on WebTrade.

See Trade Demo for an interactive guide to WebTrade.

Where can I check the daily quota balance of Shanghai Connect Northbound?

The daily quota balance of Shanghai Connect Northbound can be checked on HKEX's official website.

What can I trade under Shanghai – Hong Kong Stock Connect?

You can trade specific stocks listed on the SSE Market under Shanghai-Hong Kong Stock Connect. The full list of the eligible stocks is published on HKE’s website.

http://www.hkex.com.hk/eng/market/sec_tradinfra/chinaconnect/Eligiblestock.htm

What are the trading hours for Shanghai A Shares through Shanghai – Hong Kong Stock Connect?

The trading hours for the Shanghai Stock Exchange are:

Monday to Friday

What are the order cut-off times for Shanghai A Shares?

To ensure the proper execution of your orders, please note the following schedule: 

Order Type/Action Time (HKT)	09:10 - 09:15	09:15 - 09:20	09:20 - 09:25	09:25 - 09:30	09:30 - 11:30	11:30 - 12:55	12:55 - 13:00	13:00 - 14:57	14:57 - 15:00	15:00 - 16:40	16:40 - 09:10
New
*Amend
Cancel

	: Orders received will be processed immediately
	: Orders received will be processed in the next trading session
	: Orders will be rejected

(1) 09:20 – 09:25 and 14:57 – 15:00: Order amendment and cancellation will not be accepted.
(2) (a) 09:10 – 09:15; (b) 09:25 – 09:30; (c) 12:55 – 13:00: New order, amendment and cancellation cannot be placed and processed by SSE until the market opens.
(3) Orders that have not been executed during the trading sessions will be automatically transferred to the next one.

*Please note the if your order has been partially executed or the outstanding quantity is not the multiples of its board lot size, no amendments will be accepted on WebTrade

What is the settlement period for trading Shanghai A Shares?

The settlement cycle of Shanghai A Shares under Shanghai-Hong Kong Stock Connect for trading with KGI Asia: Stock settlement on trade date ("T") and fund settlement before 10:00am on T + 1 day.

The settlement date of Shanghai A Shares under Shanghai-Hong Kong Stock Connect must be a business day in both the Mainland and Hong Kong.

Trading hour, Trading and Settlement Calender

What is the board lot size for trading Shanghai A Shares?

The board lot size of Shanghai A Shares is 100 shares. 

Can I do day trading when trading on Shanghai A Shares?

Day trading of the same stock is not allowed. Stocks purchased on a trade day cannot be disposed of until the next trade day. 

Are there any price limits when trading Shanghai A Shares under Shanghai – Hong Kong Stock Connect? 

Daily price fluctuations in Shanghai A Shares are limited to within 10%* of the previous day's closing prices. All the trading orders breaking the price limit will be deemed invalid. 

In order to ensure the smooth operation of Shanghai-Hong Kong Stock Connect, the Exchange sets a lower price limit for buy orders of all Northbound trades (A Shares purchased by investors). Buy order for Northbound Trading Securities at a price below its current best bid price (and if no current best bid price is available, latest trade price is apply, and if it is also not available, previous closing price is apply) by a certain percentage will be rejected by the System. The price limit will be set at 3%.

* Subject to changes of the regulatory requirements of the relevant China Stock Exchanges. 

What is the settlement currency under Shanghai-Hong Kong Stock Connect?

The settlement currency of Shanghai-Hong Kong Stock Connect A Shares is RMB. Please refer to the following important notice of Foreign Currency Transactions.

For the purposes of carrying out the orders of a client of KGI Asia Limited (“KGI Asia”) or exercising any of KGI Asia ’s rights under its client agreement with the client or under any account of the client, KGI Asia may, at any time in its sole and absolute discretion and without any obligation, convert any amount in any currency in any account(s) of the client or standing to the credit of the client to any other currency. Exchange rate losses and the costs of conversion shall be borne by the Customer.

Will there be any disclosure obligations for Shanghai A Shares?

Under the current PRC rules, when an investor holds or controls up to 5% of the issued shares of a SSE-listed company, the investor is required to disclose the interest within three working days. Such investor may not buy or sell the shares in the listed issuer within the three-day period.

For such investor, every time when there is a change in the shareholding by 5%*, s/he is required to make a disclosure within three working days. The investor may not buy or sell the shares in the listed issuer from the day the disclosure obligation arises to two working days after the disclosure is made.

If a change in shareholding of the investor is less than 5% but results in the shares held or controlled to fall below 5% of the issues shares in the listed issuer, the investor is required to disclose the information within three working days.

* The 5% change means the actual magnitude of the net change of its shareholding as a percentage of the total issued share capital of the company (e.g. an increase from 10% to 15% or decrease from 10% to 5%).

What is the shareholding limits for foreign investors investing in Shanghai A Shares under Shanghai-Hong Kong Stock Connect?

The 10% individual shareholding limit of not equal or more than the issued capital of an issuer listed in SSE is applicable to any single foreign investor.

What is the holiday arrangement under Shanghai-Hong Kong Stock Connect?

Investors will only be allowed to trade on the other market on days where both markets are open for trading, and banking services are available in both markets on the corresponding settlement days. This arrangement is essential for ensuring that investors and brokers will have the necessary banking support on the settlement days when payments are required to be made.

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

For more details, please refer to: Trading calendar for Northbound Trading

What is the arrangement of Shanghai-Hong Kong Stock Connect trading under Typhoon signal No 8 or Black Rainstorm Signal?

When Typhoon signal No 8 or Black Rainstorm Signal is in effect in Hong Kong during the SSE Market open hours, trading will last for 15-minutes. After that, only order cancellation is allowed (new order placement and amendment will be rejected). The market will continue to open until the SSE Market is closed. 

Is short selling of Shanghai A shares allowed under China Connect?

Yes. Rule 14A17(10) stipulates that if a client of a broker has borrowed shares for Short Selling and has not yet returned which to the Stock Lender, even when the client wants to place a long sale order, the long sale order may still be subject to the tick rule in Rule 14A17(9). The examples below illustrate how to determine the number of shares that are subject to the tick rule:

Example 1: A Client who owns 200K shares of a Short Selling Security borrows 1 million shares from a China Connect EP for Short Selling purposes and has short sold 700K shares. The Client has not yet returned borrowed shares to the China Connect EP. Subsequently, the Client wants to sell 200K shares that are owned by himself. In this case the sell order of 200K shares will still be subject to the tick rule requirement and the Client and the China Connect EP need to ensure that the price of the sell order is not violating the tick rule even though the sale is a long sale.

Example 2: Further to Example 1, assume the Client instead has short sold all the 1 million shares that he borrowed and has not yet returned any of the borrowed shares to the China Connect EP. If he subsequently wants to sell the 200K shares owned by himself, in this case the sell order of 200K shares will not be subject to the tick rule because the entire quantity of borrowed shares has already been short sold. This sale is also a long sale.

Can KGI Asia client short sell Shanghai A Shares?

At the moment, KGI Asia does not provide Short Selling of Shanghai A Shares service, but the client still needs to inform KGI Asia’s investment representative whether the order is intended for Short Selling. 

What is SSE Circuit Breaker Mechanism?

SSE Circuit Breaker Mechanism are new trading rules introduced by Shanghai Stock Exchange, which will apply to northbound trading of A shares through SH-HK Stock Connect. The rules provide that during the continuous auction session, when the CSI 300 Index increases or decreases by 5% compared to its close on the previous trading day, the trading of A shares on SSE will be suspended for 15 minutes. A call auction will take place before the resumption of continuous auction session. If, during the continuous auction session, any increase or decrease of the CSI 300 Index on the same trading day reaches 7% compared to its close on the previous trading day, the trading of A shares on SSE will be suspended for the rest of the trading day.

Please refer to SSE Circuit Breaker Mechanism Frequently Asked Questions (Chinese only) for details regarding the application of the SSE Circuit Breaker Mechanism in other situations.

What are settlement currencies for Shanghai A Shares under Shanghai-Hong Kong Stock Connect transactions?

The settlement currency for Shanghai A Shares under Shanghai-Hong Kong Stock Connect should be the same as the trading currency. Please ensure sufficient money in settlement currency is available to avoid interest charges.

Where can I find executed orders?

Details of the executed orders can be found under "WebTrade" > "Securities Trading" > "Order Status".

Can I transfer Shanghai A Shares under Shanghai-Hong Kong Stock Connect from my custodian account to KGI Asia?

Yes, please inform your custodian of the transfer and call our 24-hour InvestLine at (852) 2878-5555 to obtain a copy of the Security Deposit Form. Please fax the completed and signed copy to KGI Asia at (852) 2878-6769, and the original also has to be sent to Operation - Settlement Department.

Note:
The transfer of A Shares under a different Investor ID is subject to approval by the Clearing House of the relevant Stock Exchanges.

How do I deposit/withdraw physical script of Shanghai A Shares under Shanghai-Hong Kong Stock Connect into/from my KGI Asia Trading Account?

KGI Asia will not process any requests related to deposit or withdrawal of physical script of Shanghai A Shares under Shanghai-Hong Kong Stock Connect.

How do I place Shenzhen A Shares orders via WebTrade?

1. Log into your KGI Asia Trading Account. 
2. Select “Shenzhen A” in “Securities Trading”
3. Fill in the details of your order request.
4. Click “Preview” to double check your entries before you confirm.

Note:

1. You have to use the same Investor ID to trade Shenzhen A Share. 
2. Shenzhen A Shares orders currently can be placed via WebTrade or our 24-hour InvestLine at (852) 2878-5555. 

See Trade Demo for an interactive guide to WebTrade

Can I amend an order for Shenzhen A Shares? 

Yes, you can make amendments to any trading orders.

For more, in order to facilitate the flow of order placement, we have created a function in our system to automatically “cancel” expired trading orders and place new ones directly to ShenzhenStock Exchange.

Please note that if your order has been partially executed or the outstanding quantity is not the multiples of its board lot size, no amendments will be accepted on WebTrade.

How do I amend/cancel my order?

You can amend/cancel the quantity and price of your orders if they have not yet been fully executed.

To amend/cancel your order, click on the respective “Amend” / “Cancel” link on the Order Status table under WebTrade > “Securities Trading”, and enter your changes in the appropriate boxes and click “Submit”. 

*Please note that if your order has been partially executed or the outstanding quantity is not the multiples of its board lot size, no amendments will be accepted on WebTrade.

See Trade Demo for an interactive guide to WebTrade. 

Where can I check the daily quota balance of Shenzhen Connect Northbound?

The daily quota balance of Shenzhen Connect Northbound can be checked on HKEX's official website.

What can I trade under Shenzhen – Hong Kong Stock Connect?  

You can trade specific stocks listed on the SZSE Market under Shenzhen-Hong Kong Stock Connect. These include all the constituent stocks of SZSE Component Index and the SZSE Small/Mid Cap Innovation Index which have a market capitalization of not less than RMB 6 billion, and all the SZSE-listed A Shares which have corresponding H shares listed on SEHK, except SZSE – listed shares which are not traded in RMB or under risk alert. 

The full list of the eligible stocks is published on the HKEX website.

http://www.hkex.com.hk/eng/market/sec_tradinfra/chinaconnect/Eligiblestock.htm

Can I trade ChiNext shares under Shenzhen Connect?

Only institutional professional investors can trade ChiNext shares under Shenzhen Connect. 

For more details, please refer to HKEX website. 

What are the trading hours for trading Shenzhen A Shares through Shenzhen – Hong Kong Stock Connect? 

The trading hours for the Shenzhen Stock Exchange are: 

Monday to Friday

What are the cut-off times on order entries for Shenzhen A Shares? 

To ensure the proper execution of your orders, please note the following schedule: 

Order Type/Action Time (HKT)	09:10 - 09:15	09:15 - 09:20	09:20 - 09:25	09:25 - 09:30	09:30 - 11:30	11:30 - 12:55	12:55 - 13:00	13:00 - 14:57	14:57 - 15:00	15:00 - 16:40	16:40 - 09:10
New
*Amend
Cancel

	: Orders received will be processed immediately
	: Orders received will be processed in the next trading session
	: Orders will be rejected

(1) 09:20 – 09:25 and 14:57 – 15:00: Order amendment and order cancellation will not be accepted.
(2) (a) 09:10 – 09:15; (b) 09:25 – 09:30; (c) 12:55 – 13:00: New order, amendment and cancellation cannot be placed and processed by SZSE until the market opens
(3) Orders that have not been executed during the trading sessions will be automatically transferred to the next one.

*Please note the if your order has been partially executed or the outstanding quantity is not the multiples of its board lot size, no amendments will be accepted on WebTrade

What is the settlement period for Shenzhen A Shares? 

The settlement cycle of Shenzhen A Shares under Shenzhen-Hong Kong Stock Connect for trading with KGI Asia: Stock settlement on trade date ("T") and fund settlement before 10:00am on T + 1 day.  

The settlement date of Shenzhen A Shares under Shenzhen-Hong Kong Stock Connect must be a business day in both the Mainland and Hong Kong.

What is the board lot size for trading Shenzhen A Shares? 

The board lot size of Shenzhen A Shares is 100 shares.

Can I do day trading when trading on Shenzhen A Shares? 

Day trading of the same stock is not allowed. Stocks purchased on a trade day cannot be disposed of until the next trade day.

Are there any price limits when trading Shenzhen A Shares under Shenzhen – Hong Kong Stock Connect? 

Daily price fluctuations in Shenzhen A Shares are limited to within 10%* of the previous day's closing prices. All the trading orders breaking the price limit will be deemed invalid. 

In order to ensure smooth operation of Shenzhen - Hong Kong Stock Connect, the Exchange sets a lower price limit on buy orders of all Northbound trades (A Shares purchased by investors). Buy order for Northbound Trading Securities at a price below its current best bid price (and if no current best bid price is available, latest trade price is apply, and if it is also not available, previous closing price is apply) by a certain percentage will be rejected by the System. The price limit will be set at 3%.

* Subject to the changes of the regulatory requirements of the relevant China Stock Exchanges.

What is the settlement currency under Shenzhen - Hong Kong Stock Connect? 

The settlement currency of Shenzhen - Hong Kong Stock Connect A Shares is RMB. Please refer to the following important notice of Foreign Currency Transactions.

For the purposes of carrying out the orders of a client of KGI Asia Limited (“KGI Asia”) or exercising any of KGI Asia’s rights under its client agreement with the client or under any account of the client, KGI Asia may, at any time in its sole and absolute discretion and without any obligation, convert any amount in any currency in any account(s) of the client or standing to the credit of the client to any other currency. Exchange rate losses and the costs of conversion shall be borne by the Customer.

Will there be any disclosure obligations for Shenzhen A shares?

Under the current PRC rules, when an investor holds or controls up to 5% of the issued shares of a SZSE-listed company, s/he is required to disclose the interest within three working days. Such investor may not buy or sell the shares in the listed issuer within the three-day period.

For such investor, every time when there is a change in the shareholding by 5%*, s/he is required to make a disclosure within three working days. The investor may not buy or sell the shares in the listed issuer from the day the disclosure obligation arises to two working days after the disclosure is made.

If a change in shareholding of the investor is less than 5% but results in the shares held or controlled to fall below 5% of the issues shares in the listed issuer, the investor is required to disclose the information within three working days.

* The 5% change means the actual magnitude of the net change of its shareholding as a percentage of the total issued share capital of the company (e.g. an increase from 10% to 15% or decrease from 10% to 5%).

What is the shareholding limits for foreign investors investing in Shenzhen A Shares under Shenzhen - Hong Kong Stock Connect?

A single foreign investor’s shareholding in a listed company (regardless of the channels through in which the shares in such company are being held, including QFII, RQFII and Shanghai and Shenzhen Connect) is not allowed to exceed 10 % of the company’s total issued shares.

What is the holiday arrangement of Shenzhen – Hong Kong Stock Connect? 

Investors will only be allowed to trade on the other market on days where both markets are open for trading, and banking services are available in both markets on the corresponding settlement days. This arrangement is essential for ensuring that investors and brokers will have the necessary banking support on the settlement days when payments are required to be made.

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

For more details, please refer to: Trading calendar for Northbound Trading

Will Northbound trading open in the afternoon if the Hong Kong market is a half trading day?

If the SZSE market is open on a day which is a half trading day in the Hong Kong market, Northbound trading will continue until the SZSE market is closed.

What is the arrangement of Shenzhen - Hong Kong Stock Connect trading under Typhoon signal No 8 or Black Rainstorm Signal? 

The following table illustrates the arrangement under severe weather conditions of Northbound trading of SZSE Securities.

For more details, please refer to: Trading calendar for Northbound Trading

Can KGI Asia client short sell Shenzhen A Shares?

At the moment, KGI Asia does not provide Short Selling of Shenzhen A Shares service, but the client still needs to inform KGI Asia’s investment representative whether the order is intended for Short Selling.

What are settlement currencies for Shenzhen A shares under Shenzhen-Hong Kong Stock Connect transactions?

The settlement currency for Shenzhen A shares under Shenzhen-Hong Kong Stock Connect should be the same as the trading currency. Please ensure sufficient money in settlement currency is available to avoid interest charges.

Where can I find executed orders ?

Details of the executed orders can be found under "WebTrade" > "Securities Trading" > "Order Status".

Can I transfer Shenzhen A shares under Shenzhen-Hong Kong Stock Connect from my custodian account to KGI Asia?

Yes, please inform your custodian of the transfer and call our 24-hour InvestLine at (852) 2878-5555 to obtain a copy of the Security Deposit Form. Please fax the completed and signed copy to KGI Asia at (852) 2878-6769, and the original also has to be sent to Operation - Settlement Department.

How do I deposit/withdraw physical script of Shenzhen A shares under Shenzhen-Hong Kong Stock Connect into/from my KGI Asia Trading Account?

KGI Asia will not process any requests related to deposit or withdrawal of physical script of Shenzhen A shares under Shenzhen-Hong Kong Stock Connect.

How do I place a China B share order via WebTrade?

1. Log into your KGI Trading Account.
2. Select "Shanghai B" or "Shenzhen B" in "Securities Trading".
3. Fill in details of your order request.
4. Click "Preview" to double check your entries before you confirm.

Note:
You have to use the same Investor ID to trade China B Shares.
Chinese B Shares orders currently can be placed only via WebTrade or through our 24-hour InvestLine at (852) 2878-5555.

See Trade Demo for an interactive guide to WebTrade.

Can I trade China B Shares through my Personal Investor ID (B Share Investor Account Number)?

No, unless you are a DVP client and have filed with KGI a copy of the "SHENZHEN B SHARE INVESTOR ACCOUNT OPENING CONFIRMATION" or "SHANGHAI B SHARE INVESTOR ACCOUNT OPENING CONFIRMATION".

What is the next step after I place an order?

Once you place an order, WebTrade will provide you a summary of your order and a reference number. The reference number is our confirmation that your order has been accepted. Please DO NOT disconnect from WebTrade until you have received the reference number. From this point on, you can always find out the status of your order by clicking "Securities Trading" > "Order Status".

See Trade Demo for an interactive guide to WebTrade.

How do I amend/cancel my order?

You can amend/cancel the quantity of your orders and prices in these orders if they have not yet been fully executed.

To amend/cancel your order, please click on the relevant [Amend]/[Cancel] link on the Order Status table under "WebTrade" > "Securities Trading", enter your changes in the appropriate boxes and click "Submit".

See Trade Demo for an interactive guide to WebTrade.

What type of China B Shares can I trade via WebTrade?

You can trade online all listed B Shares on the Shanghai Stock Exchange and Shenzhen Stock Exchange.

What are the trading hours for the China B Shares market?

The trading hours for Shanghai and Shenzhen Stock Exchanges are:

Monday to Friday

1. 09:15 - 09:25 (HKT)(Pre-opening session)
2. 09:30 - 11:30 (HKT)
3. 13:00 - 15:00 (HKT)

What are the cut-off times on order entries for China B Shares?

To ensure the smooth processing of your order entries, please note the following schedule:

Order Type	Action	Time (HKT)
		09:15 - 15:00	15:00 - 16:40	16:40 - 06:00	06:00 - 08:00	08:00 - 09:15
Limit	New
	Amend
	Cancel

	: Orders received will be processed immediately
	: Orders received will be processed in the next trading session
	: Orders will be rejected

What is the settlement period for China B Shares?

The settlement period is trade date plus 3 business day (T+3).

For Shanghai B Share trade, settlement date is a business day both in China and in the US.
For Shenzhen B Share trade, settlement date is a business day both in China and in Hong Kong.

What is the board lot size for China B Shares?

Shanghai and Shenzhen B Shares stock lot sizes are both 100 shares.

Can I short-sell China B Shares?

No. Short-selling is strictly prohibited on both the Shanghai Stock Exchange and Shenzhen Stock Exchange.

Can I buy and sell same China B Shares on the same trading day?

Effective 1 Dec, 2001, day trading of the same stock is not allowed. Stocks purchased on a trade day cannot be disposed of until the next trade day.

Are there any price limits on China B Shares?

Daily price fluctuations in China B Shares are limited to within 10%* of the previous day's closing prices. All the trading orders breaking the price limit will be deemed invalid.

*Subject to the changes of the regulatory requirements of the relevant China Stock Exchanges.

What is Enterprise Income Tax on China B-Shares Dividend Distributions to Non-Resident Enterprises?

PRC State Administration of Taxation has issued a notice (Guo Shui Han [2010] No. 183) and the relevant PRC listed companies have commenced actions to withhold and recoup 10% withholding income tax from non-resident enterprises with respect to B-shares dividend distributions in the financial year of 2008 and the following financial years. As such, KGI will deduct 10% withholding tax from any B-shares dividend received before crediting them into client accounts.