AMENDMENT OF RULES IN RELATION TO NORTHBOUND TRADING OF STOCK CONNECT BY CHINA SECURITIES REGULATORY COMMISSION (CSRC), SHANGHAI STOCK EXCHANGE (SSE) AND SHENZHEN STOCK EXCHANGE (SZSE)
CSRC, SSE and SZSE will restrict Mainland investors from Northbound Trading under Stock Connect with effect from 25 July 2022 (the Effective Date):
- 1.From the Effective Date, Luk Fook shall NOT register new Broker-to-Client Assigned Number (BCAN) for clients who are Mainland investors, i.e. registration of new BCANs with ‘CHN’ as the country/ region of issuance (CHN BCANs) will be rejected;
- 2.There will be a 1-year transitional period (from 25 July 2022 to 23 July 2023) from the Effective Date, during which Mainland investors with registered CHN BCANs could still buy and sell China Connect Securities through Northbound Trading under Stock Connect with the registered CHN BCANs;
- 3. After the transitional period (from 24 July 2023): (A) Luk Fook will delete all CHN BCANs for their clients who are Mainland investors, (B) Mainland investors shall not proactively buy any China Connect Securities through Northbound Trading under Stock Connect (including subscription for right issues), but excluding obtaining China Connect Securities passively as a result of corporate actions (such as distribution of stock dividends), and (C) Existing China Connect Securities held by Mainland investors could be sold by tagging the reserved value prescribed by the Exchange, the arrangements of which will be announced in due course; and
- 4.During the transitional period, Mainland investors with registered CHN BCANs who cannot buy or sell China Connect Securities through Northbound Trading due to exceptional circumstances including bankruptcy of their brokers could open Northbound Trading account at other CCEPs or TTEPs for new CHN BCANs registration.
The following investors will be considered as “Mainland Investors”
- a) Any individuals that possess Mainland ID documents
- b) Any holders of a joint account if one of the holders is considered as Mainland investor under (a)
- c) Any corporate or unincorporated entities which are registered in the Mainland
The following investors will NOT be considered as “Mainland investors” and may continue to buy and sell China Connect Securities through Northbound Trading under Stock Connect:
- – Any individual who holds a Permit for Proceeding to Hong Kong and Macao, i.e. One-way Permit (前往港澳通行證, i.e. 單程證) or who has obtained an identity document as proof of permanent residence in a country or region outside Mainland China
– – Any branch or subsidiary of a corporate or unincorporated entity registered in Mainland China which branch or subsidiary is lawfully registered in Hong Kong or overseas
Reference: CT08822E.pdf (hkex.com.hk)