10 Key Elements

The following 10 Q&As relate to setting up accounts, trading, settlement and other value-added services:

Account

Q1: How do investors apply for trading services for the China Connect? It is necessary to set up a new account for it?
A: HK and overseas clients need only to open a stock account to participate in the Northbound Connect as well as other equity markets. It is simple and convenient.

Q2: What is the entry level for trading in China Connect?
A: We do not have any barrier-for-entry. All Hong Kong and overseas investors are eligible for trading in China Connect. However, the daily quota announced by SEHK should be noted.

Trading

Q3: How is the purchasing power of an account calculated?
A: One stock account counts as one purchasing power, which includes the value of Hong Kong shares, US shares, equity positions in other markets and cash balance in the account.

Q4: When is the value available for use after a sell order is executed?
A: Immediately upon successful transfer of the shares, the purchasing power of the account increment correspondingly. T+1 does not apply.

Settlement

Q5: What is the settlement currency for China Connect?
A: RMB is the settlement currency. Clients may either deposit RMB into their accounts or give exchange orders to brokers.

Q6: What’s the settlement cycle for China Connect? When is the settlement deadline?
A: T. Settlement must be made before 3:30pm on T.

Q7: When does the settled payment become available?
A: T+1. Clients may cash out the settled amount one day (must be a trading day) after the day when the sell order is executed.

Other value-added services

Q8: How do investors trace the prices of China Connect shares?
A: Real-time prices of these shares are available on the four CSIWM trading platforms: Xet, General version, iTrade and TSCI.

Q9: Is margin trading available for China Connect?
A: CSI will provide margin trading for the China Connect, in addition to currently available margin trading for US and Hong Kong stocks.