Differences between Mainland and Hong Kong Stock Markets

Stock Connect
Mainland investments
Regulation and Complaints
ETF Connect

Before trading A-shares listed in Shanghai and Shenzhen, it is important for Hong Kong investors to have a clear understanding of the operations and rules of Mainland stock markets, which may be different from those in Hong Kong.

  Mainland Hong Kong
Day (turnaround) trading Not allowed. Shanghai and Shenzhen stocks purchased through Stock Connect can only be sold one day after the transaction day (T+1 day). Allowed
Clearing and settlement Shares are settled on the transaction day (T day), and money is settled on T+1 day. Both shares and money are settled on T+2 day.
Price limit All Northbound trades of Shanghai and Shenzhen stocks must be within the price limit; otherwise, the trade order will be rejected by SSE/SZSE.

Price limit:

  • SSE/SZSE Main Board stocks: ±10% of the previous closing price.
  • Stocks listed on the STAR market of SSE and ChiNext market of SZSE: ±20% of the previous closing price.
  • Shanghai and Shenzhen stocks on the risk alert board: ±5% of the previous closing price.
Ways of stock holding Mainland shares are issued in scripless form, so investors cannot hold paper certificates and register the shares under their own names. Hong Kong Securities Clearing Company Limited (HKSCC) is the registered shareholder of all A-shares purchased through Stock Connect. Investors can choose to hold paper certificates and register the shares under their own names, or in an electronic form registered under the name of HKSCC Nominees Limited. Please refer to the article "Share Holding" for details.
Shareholding disclosure obligations Once the shareholding reaches 5%, the shareholder has to disclose to China Securities Regulatory Commission (CSRC) and the relevant exchange, and inform the listed company within 3 working days, and trading the relevant stock is not allowed during the 3 days. Once the shareholding reaches 5%, the shareholder must disclose to SEHK within 3 working days, but trading in the relevant stock can continue. If the shareholding reaches 5% for the first time, the shareholder must disclose within 10 working days.
Foreign shareholding restrictions Shareholding by any single Hong Kong or overseas investor must not exceed 10% of the total issued shares; and the aggregate shareholding by all Hong Kong and overseas investors must not exceed 30% of the total issue shares. No
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