Interconnection Between Mainland And Hong Kong Stock Market Trading Mechanisms A Number Of Provisions

Original Language Title: 内地与香港股票市场交易互联互通机制若干规定

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Get a Day Pass for only USD$19.99.
  First in order to regulate activities related to interconnection between Mainland and Hong Kong stock market trading mechanisms, to protect the interests of investors, maintain order in the market, according to the securities law and other relevant laws, administrative regulations, this provision is enacted. Referred to in the provisions of article interconnection between Mainland and Hong Kong stock market trading mechanisms, refer to the Shanghai Stock Exchange, Shenzhen Stock Exchange and the stock exchange of Hong Kong Limited (hereinafter referred to as the Hong Kong Stock Exchange) establish a technical connection between the Mainland and Hong Kong investors through local securities companies or brokers the sale of provision within the scope of the other Exchange-listed stocks.

Mainland and Hong Kong stock markets trading connectivity mechanisms include the Hong Kong and Shanghai stock markets trading interconnection mechanism (hereinafter referred to as the Shanghai-Hong Kong-pass) and transactions in Shenzhen stock market interconnection system (hereinafter referred to as the Shenzhen Tong). Through Shanghai and Hong Kong including Shanghai Tong and Hong Kong stocks under the Shanghai-Hong Kong Tong Tong. Shanghai Tong refers investors to entrust brokers in Hong Kong through the Hong Kong Stock Exchange securities trading service company established in Shanghai, report to the Shanghai Stock Exchange (order routing), sale in Shanghai and Hong Kong through shares listed on the Shanghai Stock Exchange within a specified range.

Under the Shanghai-Hong Kong Tong Tong of Hong Kong equities, refers investors to entrust mainland securities company, securities trading in Hong Kong via Shanghai Stock Exchange services company, declared to the stock exchange of Hong Kong (order routing), traded in Shanghai and Hong Kong pass within the provisions of the Hong Kong Stock Exchange-listed shares. Shenzhen Tong including shengu Tong and Hong Kong stocks under the Shenzhen Tong Tong. Shengu pass, which investors commissioned broker, through the Hong Kong stock exchange in Shenzhen's securities trading service company, report to the Shenzhen Stock Exchange (order routing), sale of Shenzhen Tong stocks listed on the Shenzhen Stock Exchange within a specified range.

Hong Kong stocks under the Shenzhen Tong Tong, is entrusted to the Mainland securities company, securities trading in Hong Kong through Shenzhen Stock Exchange services company, declared to the stock exchange of Hong Kong (order routing), sale of Shenzhen Tong within the provisions of the Hong Kong Stock Exchange-listed shares.

Shanghai-Hong Kong Hong Kong stocks under the pass through and under the Shenzhen Tong Tong called Hong Kong Tong of Hong Kong equities.

Article III of the Mainland with the Hong Kong stock market transactions interoperability mechanisms follow the market current trade laws and regulations.

Related transaction settlement activities comply with trade regulations and business rules, listed companies listed to comply with regulatory requirements and business rules, securities firm or broker to comply with local regulatory requirements and business rules, comply with the investor's principal securities company or broker investors where appropriate regulatory and business rules, except otherwise provided for by this provision.

Fourth China Securities Regulatory Committee (hereinafter referred to as the China Securities Regulatory Commission) on the Mainland and the Hong Kong stock market transaction related business supervision and management mechanism for interconnection and regulatory cooperation arrangement with the Hong Kong Securities and Futures Commission and other relevant State or local securities regulatory authority, in accordance with the principle of fairness, justice, equality, and maintain the legitimate rights and interests of investors to cross-border investments. Fifth article Shanghai Securities Exchange, and Shenzhen Securities Exchange and Hong Kong Joint Exchange carried out mainland and Hong Kong stock market trading interconnected exchange mechanism related business, should perform following duties: (a) provides necessary of places and facilities; (ii) Shanghai Securities Exchange, and Shenzhen Securities Exchange respectively in Hong Kong established securities trading service company, Hong Kong Joint Exchange respectively in Shanghai and Shenzhen established securities trading service company; on securities trading service company business activities for management,

Urged and assist its perform this provides by gives of duties; (three) developed related business rules, on market subject of related trading and the other activities for self-discipline management, and carried out across market regulatory cooperation; (four) developed securities trading service company carried out related business of technology standard; (five) on related trading for real-time monitoring, and established corresponding of information exchange system and joint monitoring system, common monitoring across border of not due trading behavior, prevention market risk; (six) management and released related market information;

(VII) other duties stipulated by the CSRC.

The Shanghai Stock Exchange, Shenzhen Stock Exchange shall, in accordance with the relevant regulatory requirements, separate Hong Kong stocks through investor suitability of specific standards and guidelines, and submitted to the China Securities Regulatory Commission for the record.

The Shanghai Stock Exchange, Shenzhen stock exchanges shall formulate business rules, asked the Hong Kong stock exchange and securities trading service company to provide investor information relating transaction reporting. Sixth article securities trading service company should according to securities exchange of related business rules or through securities exchange of related business arrangements perform following duties: (a) Shanghai Securities Exchange securities trading service company provides in Shanghai and Hong Kong pass Xia of Hong Kong stocks pass related service, Shenzhen Securities Exchange securities trading service company provides Shenzhen pass Xia of Hong Kong stocks pass related service; Hong Kong Joint Exchange in Shanghai established of securities trading service company provides Shanghai unit pass related service ; Hong Kong Joint Exchange in Shenzhen established of securities trading service company provides shengu pass related service; (ii) provides necessary of facilities and technology service; (three) perform Shanghai unit pass, and shengu pass or Hong Kong stocks pass lines management related duties; (four) developed Shanghai unit pass, and shengu pass or Hong Kong stocks pass business of operation process and risk control measures, strengthening internal control, prevention risk; (five) Shanghai Securities Exchange, and Shenzhen securities exchange established of securities trading service company should respectively developed mainland securities company carried out Hong Kong stocks pass business of technology standard, and on intends carried out business company of technology system for test assessment; Hong Kong Joint Exchange in Shanghai and Shenzhen established of securities trading service company should respectively developed Hong Kong brokers carried out Shanghai unit pass, and shengu pass business of technology standard, and on intends carried out business company of technology system for test assessment; (six) for securities company or brokers provides technology service, and on its access Shanghai unit pass, and

Shengu or Hong Kong stocks through technical system operation monitoring; (VII) other duties stipulated by the CSRC.

Seventh article China securities registration settlement limited responsibility company (following referred to China securities registration settlement company), and Hong Kong Central settlement limited (following referred to Hong Kong Central settlement company) carried out mainland and Hong Kong stock market trading interconnected exchange mechanism related business, should perform following duties: (a) provides necessary of places and facilities; (ii) provides registration, and save tube, and settlement service; (three) developed related business rules; (four) law provides name holds people service;

(E) for registration to participate in bodies related self-discipline management activities, (vi) other duties stipulated by the CSRC.

Article eighth securities company Hong Kong businesses in the Mainland, shall abide by the laws, administrative regulations, the provisions of, the requirements of other provisions of the CSRC and relevant business rules, to strengthen internal control, prevent and control risks, according to the China Securities Regulatory Commission and the Shanghai Stock Exchange, Shenzhen Stock Exchange investor eligibility management regulations, develop implementation plans, and effectively safeguard the interests of customers.

Nineth due to abnormal situation will severely affect the Mainland with the Hong Kong stock market transactions interoperability mechanism for some or all transactions normally, Shanghai Stock Exchange and Shenzhen Stock Exchange and the stock exchange of Hong Kong in accordance with business rules and contracts, suspension of part or all of the related activities and make an announcement.

Article tenth of Shanghai Stock Exchange and Shenzhen Stock Exchange and the stock exchange of Hong Kong to the Mainland and the Hong Kong stock market trading mechanism for interconnection related business, limited to provisions within the scope of stock trading and other business approved by the China Securities Regulatory Commission.

11th securities trading service company and securities firm or broker shall not set investors on their own through the Mainland and Hong Kong stock markets trading orders turnover of interconnection mechanism for the sale of shares, shall not engage in any other form in places outside the stock exchange through the Mainland and Hong Kong stock market trading mechanism for interconnection of stock transfer services provided, except as otherwise provided by the China Securities Regulatory Commission.

Territory of the 12th foreign investor stock investment, should be guided by the following shareholding limit: (a) a single foreign investor's stake to a single listed company shall not exceed the total number of shares of listed companies of 10%, (ii) all on a single listed company a-shares for overseas investors stake sum, shall not exceed the total number of shares of the listed company 30%.

Foreign investors in accordance with the strategic investment in listed companies, its strategic investments holding is not subject to such restrictions.

In relation to laws and regulations and other relevant regulations have stricter rules on ownership ceiling from its provisions.

13th investor shall enjoy through the Mainland and Hong Kong stock markets trading interconnection mechanism for buying the stock of interest. Investors, Hong Kong stocks through purchases of shares shall be recorded in the China Securities Depository and clearing companies in the Hong Kong securities clearing company to open a securities account. China Securities Depository and Clearing Corporation shall in their own name, exercised through Hong Kong securities clearing company of the issuer of the stock rights.

China Securities Depository and Clearing Corporation exercise of the right of the issuer of the stock should be adopted by domestic securities companies, trust banks and other institutions seek the views of investors, and in accordance with its advice. Issued by the China Securities Depository and Clearing Corporation's shareholder records, is Hong Kong pass investors have the legal proof of the equities.

Investors can request paper stock, except otherwise stipulated by the CSRC. Investors through the Shanghai pass, shengu pass buy shares should be registered with the Hong Kong securities clearing company.

Investors, Shanghai Tong, shengu through the sale of shares to meet disclosure requirements, and shall fulfil their reporting and disclosure obligations. Article 14th pass through Hong Kong equities transactions, undertaken by the China Securities Depository and Clearing Corporation stock and financial liabilities of the settlement.

Trade through Shanghai pass, shengu pass, borne by the Hong Kong securities clearing company liquidation of stocks and funds settlement obligations.

China Securities Depository and Clearing Corporation and the Hong Kong securities clearing company, shall, in accordance with market principles of settlement risk in relative isolation, passing each other, mutual participation in each other's markets mutual insurance risk funds arrangements; other relevant risk management arrangements should comply with the clearing of the settlement provisions relating to risk management. 15th investor through interconnection between Mainland and Hong Kong stock market trading mechanism for buying and selling stocks, be denominated in Renminbi settlement with securities firm or broker.
Using other currencies for settlement, subject to the rules of the provisions.

16th for violations of laws and regulations, to the requirements and relevant regulations of the China Securities Regulatory Commission, China Securities Regulatory Commission to take regulatory measures shall be given administrative punishments according to law, in accordance with the Securities Act and other laws and regulations of the law on administrative punishment for punishment; a suspected crime, transferred to the judicial organs according to law, be held criminally responsible.

The China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission and other relevant State or local securities regulatory authority, through the cross-border supervisory cooperation mechanism, and investigate and punish the Mainland and Hong Kong stock markets traded cross-border illegal activities related to interconnection mechanism.

Article 17th Shanghai Stock Exchange and Shenzhen Stock Exchange and China Securities Depository and Clearing Corporation in accordance with the relevant requirements of the regulations, respectively the Mainland business rules associated with the transaction in Hong Kong stock market interconnection system, reported the China Securities Regulatory Commission for approval.

18th securities exchanges, securities trading service company and clearing institution shall keep and perform the formation responsibilities under the provisions of the various types of documents and materials, shelf life of not less than 20 years. 19th these provisions come into force on the date of promulgation.













Interconnection between the Hong Kong and Shanghai stock markets trading mechanism pilot regulations (SFC 101th) repealed simultaneously.

Related Laws