FAQ | SHANGHAI STOCK EXCHANGE

FAQ

Investor FAQ

For recent update on information disclosure under Shanghai-Hong Kong Stock Connect, please click HERE for Press Conference Recap From CSRC.
Material provided is for reference only.

1.Sources have claimed that the Hong Kong Stock Exchange requested a postponement of the implementation of capital gains tax under the Shanghai-Hong Kong Stock Connect program. Would you please verify whether such report is true and what is the comment of the CSRC on this matter?

The Shanghai-Hong Kong Stock Connect marks an important attempt to enhance the interconnection and two-way opening-up of capital markets in the Mainland and Hong Kong and upon officially initiating the Shanghai-Hong Kong Stock Connect, the CSRC already gave priority to the research and policy coordination of relevant tax issues and received vigorous support from fiscal authorities. Given that the tax issues of Shanghai-Hong Kong Stock Connect involve existing laws and regulations with a strong policy nature and extensive influence, it is important to adhere to the fairness and prudence of tax policies and accommodate the innovation and openness of businesses under the Shanghai-Hong Kong Stock Connect program. Therefore, relevant tax policies require prudent decision-making after comprehensive consideration of multiple factors. The CSRC is coordinating with relevant departments in expediting this activity in a proactive manner and will try to resolve relevant issues on an early date.
2.What’s the regulatory arrangement for information disclosure by related listed companies under the Shanghai-Hong Kong Stock Connect? How will the difference between the trading days of the Hong Kong and Mainland China be addressed?

For A+H shares, the information disclosure will be synchronized and there is no such problem. In terms of practice, the companies who chose A+H shares listing will comply with the information disclosure requirements during the overlap time period between the closing of the current trading day and the opening of the next trading day of the SSE and the HKex, so as to ensure equal access to information by the investors of both Hong Kong and Mainland China.
For shares other than A+H shares, the listed companies will disclose the information as required by the exchanges on which it gets listed. The investors will be provided with access to information according to customs, and the members of the exchanges will give necessary assistance and there is also no concern of time difference. Taking as example the investment in HKex-listed stocks by the Mainland China investors, the Hong Kong listed companies involved in the Southbound Trading Link will make information disclosure as required by the HKex (a Chinese version for such disclosure will be required also), and will be subject to regulation by the HKex. Thanks to the developed Internet technology, the Mainland China investors may directly access the information disclosed by HKex-listed companies involved in the Southbound Trading Link through the e-disclosure system of HKex and the official websites of relevant listed companies.
3.Will Shanghai-Hong Kong Stock Connect impact the small and medium-sized brokerage business in Hong Kong?

Shanghai Hong Kong Stock Connect will not impact the small and medium-sized brokerages in Hong Kong, instead, it will bring small and medium-sized brokerages in Hong Kong new business opportunities. On the one hand, the Shanghai Hong Kong Stock Connect will help increase the volume of the Hong Kong market, improve market liquidity, attract more investors to participate in the Hong Kong market, so as to bring new business opportunities for Hong Kong brokers. If international investors want to invest in Shanghai A share market via Shanghai - Hong Kong Stock Connect, they must trade through brokers in Hong Kong, therefore it offers huge potential for business development for all the Hong Kong brokers, including small and medium-sized brokerages. On the other hand, Under the Shanghai-Hong Kong Stock Connect mechanism, the Hong Kong brokers serve Hong Kong and overseas investors, Chinese mainland securities companies only serve the mainland investors, there is no competition between the mainland and Hong Kong brokers, therefore the mainland brokers, which serve the mainland investors for investing in Hong Kong market through Shanghai-Hong Kong Stock Connect, will not affect Hong Kong brokerage business.
4.There are many differences between Shanghai and Hong Kong stock market in terms of trading rules and regulatory system. Can improper regulatory arbitrage effectively be prevented, and relevant illegal cross-border acts be combated?

According to the Joint Announcement of China Securities Regulatory Commission (CSRC) and Hong Kong Securities and Futures Commission (SFC) regarding Shanghai-Hong Kong Stock Connect, trading arrangements will be subject to the regulations and operational rules of the market where trading takes place. Listed companies will continue to be subject only to the listing and other rules and regulations of the markets where they are listed.
Both the CSRC and the SFC will take all necessary measures to establish, in the interests of investor protection, an effective regime under Shanghai-Hong Kong Stock Connect to respond to all misconduct in either or both markets on a timely basis. The CSRC and the SFC will improve the current bilateral agreement to strengthen enforcement cooperation in respect of the following areas: referral and information exchange mechanisms concerning improper activities; investigatory cooperation in relation to cross boundary illegal activities including disclosure of false or misleading information, insider dealing and market manipulation; bilateral enforcement exchange and training; and enhancement of general standards of cross--boundary enforcement cooperation.
In addition, on the basis of existing cooperation, both exchanges will also strengthen self-discipline regulatory cooperation under the Shanghai-Hong Kong Stock Connect mechanism, sign regulatory cooperation agreement on Shanghai-Hong Kong Stock Connect, in order to clarify the authority, division of labour, cooperative relationship on regulatory cooperation aspects.
We believe that regarding the differences of the trading rules and regulatory system between the mainland and Hong Kong market, a series of institutional arrangements and measures taken by securities Regulatory Commission and Exchanges of both sides will bring the greatest degree of convenience for local investors to invest in the other market via Shanghai-Hong Kong Stock Connect, and at the same time it will be able to effectively prevent improper institutional arbitrage, to crack down on relevant cross border illegal acts.
5.Which rules and regulations are included? What is the position of "the Measures for Shanghai –Hong Kong Stock Connect pilot Program"?

In addition to the " the Securities Law of the People’s Republic of China ", "Hong Kong securities and Futures Ordinance" and other higher-level laws, the rules and regulation of Shanghai-Hong Kong Stock Connect mainly include:
(1)The Joint Announcement of CSRC and SFC issued on April 10 2014, which is the policy document for starting Shanghai-Hong Kong Stock Connect.
(2)"The Several Provisions on the Shanghai-Hong Kong Stock Connect Pilot Program" issued by CSRC on June 13 2014, which provides regulations on the significant systemic issues on Shanghai-Hong Kong Stock Connect and serves as leading rules on Shanghai-Hong Kong Stock Connect.
(3)Trading Rules and clearing rules issued respectively by Shanghai Stock Exchange("SSE"), Stock Exchange of Hong Kong Limited ("SEHK"), China Securities Depository and Clearing Corporation Limited ("CSDC") and Hong Kong Securities Clearing Co., Ltd. ("HKSCC"), which provide detailed provisions on all aspects of trading and clearing, and thus serve as the basis for carrying out the business. Among them, the rules and regulations of SSE and CSDC mainly include: "Measures for Shanghai–Hong Kong Stock Connect Pilot Program by Shanghai Stock Exchange”, "Appropriateness Management Guidance for Hong Kong Stock Connect Investors", "Implementation Guidance for HKSCC participating in Shanghai Stock Connect’s listed companies online voting"; Implementing Rules for Registration, Depository and Clearing Services under the Shanghai-Hong Kong Stock Connect Pilot Program issued by CSDC; Essential provisions for the "Hong Kong Stock Connect Consignment Agreement" and "Risk Disclosure Letter".
In addition to the above rules and regulations, Investors investing through Shanghai-Hong Kong Stock Connect should also pay attention to and comply with the existing laws and regulations on both markets.
6.How does the Implementation Rules differ from its draft soliciting public opinions?

SSE solicited public opinions for the draft version of Implementation Rules from April 29th to May 19th, receiving written feedbacks from 78 institutions. SSE later made revisions and improvements based on market, CSRC, CSDCC and SEHK feedback. Main revisions include:
(1)Improving quota control mechanism: to prevent the aggregate quota balance from exceeding that of the initial quota amount, we changed the total sell trade value to total sell trade cost(referring to the corresponding buying cost for the particular sell trades), the aggregate quota balance = aggregate quota-total buy trades value+ total sell trade cost; HK Stock Connect: if daily quota is used up and buy orders are suspended during opening call auction, balance will not reset during this period; for Shanghai Stock Connect, if daily quota is used up and buy orders are suspended during pre-opening，buy orders are accepted again if balance goes above zero. However, if this happens during continuous call auction, balance will not reset for neither HK nor Shanghai Stock Connect; Any unlawful intent to occupy quota by placing large buy orders with low price is forbidden.
(2)Added rules concerning rights issue: when SSE listed companies eligible for Shanghai Stock Connect conduct rights issue for HK investors, CCASS shall participate in subscription as nominee holders and shall comply with existing SSE rules relevant to this matter; when SEHK listed companies eligible for HK Stock Connect issue rights or conduct public placements for mainland investors, they shall comply with relevant rules of the CSRC and CSDCC.
(3)Added rules concerning margin trading and covered short-selling: Shanghai Stock Connect investors can participate in these activities in Hong Kong market, but shall also comply with the SSE rules concerning eligible stocks, order placing requirements, restrictions on proportion and suspension of service.
(4)Refined detailed matters on Stock Connect Trading: we further clarified matters such as order numbers and cancellation as well as selling odd lot etc. under Hong Kong Stock Connect; and order content, benefits etc. under Shanghai Stock Connect. Institutions renting trading units of SSE shall sign service contracts with SSE Securities Trading Service Firm and directly participate in Hong Kong Stock Connect trading.
7.What does the Implementation Rules cover?

the Implementation Rules for SHHKSC is a major set of rules governing the Stock Connect, and covers a wide range of specific requirements as well as models for this scheme. It includes the following aspects:
(1) Shanghai Stock Connect Trading: Securities Trading Service Firm of SEHK must apply to become SSE’s exchange participant; Range of Eligible Stocks and adjustment rules; Trading mechanism, order types, margin trading and covered short-selling; quota control mechanism and proportion of shareholding.
(2) Hong Kong Stock Connect Trading: sets out rules for investors’ eligibility and other requirements; members’ participation requirements; range of eligible stocks and adjustments; quota control mechanism; designated trading, third-party deposit, pre-trading checking of funds and securities and other measures following A-share rules.
(3) Abnormalities during trading: refer to the existing rules for processing abnormalities on SSE Market. Considering the technical risks for cross-border trading, the Implementation Rules made specific requirements considering handling measures and market announcement etc for the Stock Connect.
(4) Self-regulations: clarifies matters such as surveillance, investigation, investigatory cooperation, requesting for regulatory actions on the exchange level, regulatory and disciplinary actions for the securities trading services firms and trading members of the SSE and SEHK.
8.Compared with current trading mechanism of A share, what are the special requirements under Shanghai Stock Connect? Any suggestions for investors?

Orders and execution under Shanghai Stock Connect follow the current rules of the SSE Market, the Implementation Measures also made special requirements including:
(1) Trading: Shanghai Stock Connect adopts auction based trading, there is no block trading for now. Limit orders are accepted,
(2) Prohibited Actions: naked short-selling, turn-around trading and dark pools are not allowed.
(3) the Benefits: under the scenario when benefits distribution result in non-eligible stocks being held by Shanghai Stock Connect investors, they are allowed to sell but not buy if the stocks are SSE-listed, they would not but allowed to sell or buy if the stocks are not SSE-listed.
(4) Margin Trading and covered short-selling: Shanghai Stock Connect investors can engage in these activities within the Hong Kong regulatory framework, but should also follow the SSE rules including securities eligibility, proportion requirement and order requirement etc.
9.Can Stock Connect Investors participate in rights issue? Hong Kong shares bought by Mainland investors are held by CSDCC, how do they participate in rights issue?

This will be further determined by regulatory authorities. SSE listed companies that are approved for conducting rights issue under Stock Connect, will issue to CCASS, which acts as a nominee for Hong Kong investors and convey their intent to subscribe. This follows the SSE rules for shares offering subscription.
Similarly, SEHK listed companies that are approved to conduct rights issue under this scheme shall follow the detailed rules issued by CSRC and CSDCC. Rights issue in HK is done through distributing subscription rights certificate; Hong Kong Bound investors can sell but not buy this certificate if it is listed. Investors need to follow CSRC and CSDCC rules if he chooses to exercise his rights.
Aside from the above circumstances, investors that acquire non-eligible stocks listed on SEHK through corporate actions can sell but not buy through the Stock Connect.
10.In the final version of rules, many clauses formerly containing "forbidden" or "no" has been changed to "except as otherwise provided". For instance, "Shanghai - Hong Kong Stock Connect adopts auction trading, except as otherwise provided by Shanghai Stock Exchange". Is there any new measure to be launched in future? What is the current research progress?

Shangai-Hong Kong Stock Connect is an innovative mechanism for cross-border trading. In its pilot phase, the designing principle is to create the relatively simple path to the achievement of business, while there is certain restriction on trading method, scope of business. Meanwhile, in the future, CSRC and SSE as well as SFC and HKEx will study the possibility of providing investors with more trading method and choices of business on the basis of the market reaction of Stock Connect. For example, it will be considered to allow investors to take block trading under Stock Connect and allow SSE members to provide margin trading services for southbound trading participants. For this consideration, in (Pilot Measure of Shanghai-Hong Kong Stock Connect) , the clauses containing “forbidden” or "no" is substituted with "except as otherwise provided", which is more flexible and reserve the space for future business expansion and improvement.
11.The cross-border regulatory issues are involved in Shanghai-Hong Kong Stock Connect. In accordance with the current version of (Pilot Measure) , if irregularities are across two exchanges, such as the violators participating southbound trading is the objects monitored by Hong Kong regulators, how to handle with? How to ensure a smooth regulatory cooperation under the special circumstances?

In order to effectively preventing and monitoring the cross-border violations under Stock Connect, Shanghai and Hong Kong stock exchanges has been conducted numerous consultations and made the consensus with regard to the self-regulatory coordination mechanisms, and will be implemented through signing the agreement. The corresponding provision of this is also made in (Trail Measure) . In principle, the two exchanges are respectively responsible for the supervision and punishment of their own listed companies and members (participants). However, when cross-border irregularities appear in Stock Connect, the two exchanges will launch the mechanism of supervision coordination. For example, when Hong Kong investors or brokers’ violation of the Shanghai Stock Exchange rules is suspected, the Shanghai Stock Exchange can ask Hong Kong Stock Exchange for the investigation of alleged irregularities. When confirming its illegal violations, Shanghai Stock Exchange will ask Hong Kong Stock Exchange for the relevant disciplinary sanctions or regulatory measures on violators, the measures include requiring Hong Kong Exchange to impose a verbal warning, written warning or rejection of accepting trading orders on the participants of Hong Kong Stock Exchange.
12.Where can the investors get the market data of Stock Connect? Is it chargeable or not?

Two exchanges will provide free real-time market data with 1-price-depth, which is updated every 5 seconds for A-share and every 3 second for Hong Kong stock. However, other real-time market data with 5 or 10-price-depth is chargeable. Investor can ask for more detail from the information providers.
13.Could you disclose the global road show of Stock Connect? What is the reaction from the investors?

In September, SSE and HKEx closely collaborated to hold a successful international roadshow of Stock Connect, in North America, Europe and the Middle East. The international roadshow selected 10 cities where international institution are located and presented the rules of the Stock Connect as well as the development of China's capital market for international investors.
The roadshow attracted the great attention of international investors, which included about 450 audience on behalf of nearly 300 institution, including pension funds, mutual funds, hedge funds, insurance companies, investment banks, commercial banks and other types of institution.
During the roadshow, two exchanges introduced the basic regulation, trading mechanism, business rules, investor protection and other issues that foreign investor should pay attention to. Also the technique and market readiness of Stock Connect is also briefly presented. Shanghai Stock Exchange showed highlight of the development of multi-tier blue chip market, showed ascension of international status with respect to market cap and trading volumes, and analyzed overall performance and future trend of listed company in the perspective of profitability, merger and acquisition, and cash dividend.
From the situation of roadshow, the international investors think highly of Stock Connect and express the willingness of participating China capital market through it and eagerness of launching it as soon as possible. Lots of large investment intuition has established special team, which includes the members having Chinese background, to make the preparation of investing A-share through Stock Connect in the perspective of legal affairs, internal procedure and IT system. The foreign broker and custodian also regard Stock Connect as the first priority and the related readiness goes well.
14.What kind of coping mechanisms is designed in (Pilot Measure) when abnormal situation happened in Shanghai Hong Kong Stock Connect?

As for the possible situation caused by force majeure, technical failures, accidents, etc. leading to anomalies of trading, (Pilot Measure) regulated procedure from the two exchanges and two securities trading services companies. From the perspective of exchanges, Shanghai Stock Exchange will take the action including suspending the trading of underlying stock, suspending the declaration of some or all of the transaction or stopping the market temporarily in northbound trading. From the perspective of securities trading services companies, they could decide to suspend all or part of service of Stock Connect and then make the announcement to the market. In addition, in the trading agreement among two exchanges and two securities trading services companies, emergency procedure of abnormalities is made in a detailed and comprehensive way.
15.【Significance】What kind of opportunities will there be after the launch of Shanghai-Hong Kong Stock Connect (Stock Connect)?

Stock Connect will bring two significant opportunities to the market: (a) the wider utilization of offshore RMB and (b) the opening of Chinese capital market.
The launch of Stock Connect will promote the utilization of offshore RMB. The participants of both Shanghai Stock Connect and Hong Kong Stock Connect trading will all use RMB as the trading and clearing currency. Such process is regarded as the cross-border investment settlement under the capital account. As for the offshore RMB, stock connect will widen the range of the free exchange of RMB and open the channel of cross border investment of RMB. As for the onshore RMB, stock connect provides another choice for the investors in mainland to invest in foreign assets with RMB directly and all the investment are well supervised in compliance with the regulation of foreign exchange.
Besides, the stock connect will facilitate the opening of the mainland capital market. It is not only an enhancement to the degree of expansion for foreign investors but also an important supplement and improvement of QFII and RQFII scheme through providing more convenience for foreign buy-and-hold investors. It is expected that the impact of stock connect will be benefitial to improving the confidence of blue-chip stock in Shanghai Stock Exchange, upgrading the valuation of the market and optimizing the structure of investors in mainland capital market. The introduction of foreign investors will bring the philosophy of value and long- term investing, which is big step for the mainland stock market towards becoming an international stock market.
16.【Eligible Stocks】Is there any plan or schedule regarding expansion of the quota and eligible stocks of Stock Connect?

According to the released by CSRC and SFC, the adjustment of the eligible stock and quota will be subject to the performance of the pilot of stock connect.
17.【Trading Calendar】How do investors prevent the risk caused by the difference of trading calendar between Shanghai and Hong Kong Stock Exchange, which will lead to the close of stock connect and make the investors in another market unable to sell.

Since the original idea of the trading mechanism of stock connect is that “Home Market Rules and Laws Apply to the Extent Possible”, it is inevitable to avoid the calendar difference. Both stock exchange fully considered the impact to the market and made the following measures. First, the eligible securities are blue chip stocks with large and mid-sized market caps and relatively stable volatility in stock price. Besides, the accessible trading calendar for Shanghai Stock Connect and Hong Kong Stock Connect trades will be released in advance and the investors who is worried about the risk are suggested to sell the holdings before the day when stock connect is closed. Both exchanges have been trying to expand the trading calendar so as to eliminate the difference to the extent possible.
18.【IPO\secondary offering\rights issue】Can stock connect investors participate in the initial public offerings (IPO), secondary offering and rights issue in the other market?

It is currently contemplated that Shanghai-Hong Kong Stock Connect will not support initial public offering, secondary offering in the pilot stage. Exchanges will further inform the market of the arrangements pertaining to other depository and nominee services under the programm. For rights issue and other corporate actions, investors should refer to CCASS rules for more information.
19.【T+1 and+-10%】Does SSE price limit and T+1 day trading apply under Shanghai-Hong Kong Stock Connect?

For SSE Securities, there is a general price limit of a ±10% (and a ±5% for stocks under special treatment (i.e. ST and *ST stocks) in the risk alert board) based on previous closing price.
All orders input for SSE Securities must be within the price limit. Any orders with price beyond the price limit will be rejected by SSE. The upper and lower price limit will remain the same intra-day.
Day trading is not allowed for Mainland A shares market. Therefore, Hong Kong and overseas investors buying SSE Securities on T-day can only sell the shares on and after T+1 day.
20.【Pre-trade Checking】What is the pre-trade checking requirement?

Currently, Mainland investors are only allowed to sell A shares which are available in their stock accounts at the end of the previous day. Based on the shareholdings of an investor, SSE will reject a sell order if the investor does not have sufficient shares in his account. For Shanghai Stock Connect trading, similar checking will also be applied to all Shanghai Stock Connect sell orders at the EP level to ensure there is no overselling by individual EPs. Sell orders will be rejected if the cumulative sell quantity for the day is higher than the shareholding position. Therefore, when placing sell orders, investors must ensure they have sufficient shares in their accounts opened with the EP who acts as the selling broker.
21.【Quota Control】Providing that the Daily Quota balance is less than zero, what if the Daily Quota balance becomes positive again due to the increase of sell trades in the same trading day?

There are two scenarios as below if Daily Quota balance becomes negative:
(a) During opening call auction (Pre-opening): reject new buy orders until Daily Quota Balance becomes positive (e.g. due to Buy Order cancellation), which means investors could apply for new order again.
(b) During continuous auction (Continuous Trading): suspend buy order input for the remaining of the day, which means investors are not allowed to apply for new order this day.
22.【Relationship with QFII and QDII】How does Shanghai-Hong Kong Stock Connect differ from the current QFII/RQFII/QDII schemes and what is its impact on these schemes?

Shanghai-Hong Kong Stock Connect differs from the current schemes such as the QFII and RQFII programmes in the following ways:
(a) In terms of eligible investors, Shanghai-Hong Kong Stock Connect is open to SSE Members, institutional investors and individual investors who satisfy certain eligibility criteria in the Mainland for Hong Kong Stock Connect trades, and EPs and any of their clients (with no restrictions imposed) for Shanghai Stock Connect trades; as a comparison, QDII and QFII schemes target selected institutional investors and they are not limited to investors in Hong Kong;
(b) In terms of eligible products for investment, Shanghai-Hong Kong Stock Connect initially accepts certain SSE listed A shares and Hong Kong listed stocks (please refer to Question No. 5 for details), while QDII, QFII and RQFII schemes have a wider scope including bonds and index futures;
(c) In terms of quota, the quota(s) of Shanghai-Hong Kong Stock Connect applies to the whole market rather than individual investors, while under QFII and RQFII schemes, quota is allocated to respective approved institutions.
(d) In terms of cross-boundary fund flow and currency exchange, under Shanghai-Hong Kong Stock Connect it will be handled by HKSCC and ChinaClear; While under QDII and QFII schemes it is completed by the QDII/QFII institutions.
Shanghai-Hong Kong Stock Connect is not exclusive to other schemes and it will co-exist with these schemes. Foreign investors will have another channel to allocate their A-share assets with lower cost and less eligibility restrictions.
23.【Delivery Date】What is the clearing and settlement cycle of Shanghai Stock Connect trading?

Shanghai Stock Connect trades will follow the A share settlement cycle. For securities settlement, ChinaClear will debit or credit its clearing participants’ (including HKSCC) stock accounts before 6:00pm on T day to settle their A share trades. To facilitate SSE Securities settlement cycle, HKSCC will conduct securities settlement on Shanghai Stock Connect trades for its CPs via two rounds of Batch Settlement Runs at around 4:30pm and 6:00pm on T day.
For money settlement of Shanghai Stock Connect trades, it will be effected by around noon on T+1 day.
Investors should consult their brokers on their stock and money settlement arrangement with respect to Shanghai Stock Connect trading, which may not exactly follow the ChinaClear and HKSCC time schedule as explained above.
24.【Taxes and Costs】How much does it cost to trade and settle SSE Securities under Shanghai-Hong Kong Stock Connect?

Hong Kong and overseas investors trading SSE Securities under Shanghai-Hong Kong Stock Connect will be subject to SSE’s Handling Fee and Securities Management Fee, together with ChinaClear’s “Transfer Fee” (as referred to below).

Besides, taxes imposed by the State Administration of Taxation (SAT), including stamp duty and dividend tax will also be applied to the Shanghai Stock Connect trades and SSE Securities acquired through Shanghai-Hong Kong Stock Connect. Capital Gain Tax information is pending.

Investor FAQ

1.Sources have claimed that the Hong Kong Stock Exchange requested a postponement of the implementation of capital gains tax under the Shanghai-Hong Kong Stock Connect program. Would you please verify whether such report is true and what is the comment of the CSRC on this matter?

2.What’s the regulatory arrangement for information disclosure by related listed companies under the Shanghai-Hong Kong Stock Connect? How will the difference between the trading days of the Hong Kong and Mainland China be addressed?

3.Will Shanghai-Hong Kong Stock Connect impact the small and medium-sized brokerage business in Hong Kong?

4.There are many differences between Shanghai and Hong Kong stock market in terms of trading rules and regulatory system. Can improper regulatory arbitrage effectively be prevented, and relevant illegal cross-border acts be combated?

5.Which rules and regulations are included? What is the position of "the Measures for Shanghai –Hong Kong Stock Connect pilot Program"?

6.How does the Implementation Rules differ from its draft soliciting public opinions?

7.What does the Implementation Rules cover?

8.Compared with current trading mechanism of A share, what are the special requirements under Shanghai Stock Connect? Any suggestions for investors?

9.Can Stock Connect Investors participate in rights issue? Hong Kong shares bought by Mainland investors are held by CSDCC, how do they participate in rights issue?

12.Where can the investors get the market data of Stock Connect? Is it chargeable or not?

13.Could you disclose the global road show of Stock Connect? What is the reaction from the investors?

14.What kind of coping mechanisms is designed in (Pilot Measure) when abnormal situation happened in Shanghai Hong Kong Stock Connect?

15.【Significance】What kind of opportunities will there be after the launch of Shanghai-Hong Kong Stock Connect (Stock Connect)?

16.【Eligible Stocks】Is there any plan or schedule regarding expansion of the quota and eligible stocks of Stock Connect?

17.【Trading Calendar】How do investors prevent the risk caused by the difference of trading calendar between Shanghai and Hong Kong Stock Exchange, which will lead to the close of stock connect and make the investors in another market unable to sell.

18.【IPO\secondary offering\rights issue】Can stock connect investors participate in the initial public offerings (IPO), secondary offering and rights issue in the other market?

19.【T+1 and+-10%】Does SSE price limit and T+1 day trading apply under Shanghai-Hong Kong Stock Connect?

20.【Pre-trade Checking】What is the pre-trade checking requirement?

21.【Quota Control】Providing that the Daily Quota balance is less than zero, what if the Daily Quota balance becomes positive again due to the increase of sell trades in the same trading day?

22.【Relationship with QFII and QDII】How does Shanghai-Hong Kong Stock Connect differ from the current QFII/RQFII/QDII schemes and what is its impact on these schemes?

23.【Delivery Date】What is the clearing and settlement cycle of Shanghai Stock Connect trading?

24.【Taxes and Costs】How much does it cost to trade and settle SSE Securities under Shanghai-Hong Kong Stock Connect?