_ What is Huluntong?

What is Huluntong? Huluntong is the product of strengthening cooperation between China and Britain, and it is the interconnection mechanism between Shanghai Stock Exchange and London Stock Exchange. Eligible listed companies in the two places can issue Depositary Receipts (DR) and list them in the other market.

Huluntong can be divided into two directions: CDR refers to the conversion of shares of companies listed on the Shanghai Stock Exchange to the Shanghai Stock Exchange for A-share investors to trade, and GDR refers to the conversion of shares of companies listed on the Shanghai Stock Exchange to the Shanghai Stock Exchange for foreign investors to trade. At present, only Huatai Securities (60 1688) has participated in Huluntong.

What are the trading rules of Huluntong?

East (CDR):

Renminbi is used as the pricing currency, the pricing unit is "price per CDR", and the minimum change unit of the declared price is RMB 0.0 1 yuan.

The declared quantity shall be 100 or its integral multiple, and the single declared quantity shall not exceed1000000 at most. The part with the sale balance less than 100 shall be declared for sale at one time.

CDR trading is limited by price fluctuation, and the fluctuation ratio is 10%.

T+ 1 trading method, that is, the CDR bought by investors on the same day cannot be sold on the same day, and it needs to wait until the next trading day.

Companies listed on the Shanghai Stock Exchange may not directly raise funds in the domestic market of China by issuing new shares and CDRs.

Western direction (GDR):

T+0 trading mode is implemented, that is, the stocks bought by investors on the same day can be sold on the same day; There is no limit to ups and downs.

A-share listed companies on the Shanghai Stock Exchange are allowed to raise funds directly in the UK market by issuing GDR.

Conditions for domestic investors to participate in Huluntong transaction:

1. Individual investors shall meet the application authority, and the daily average assets of the securities account and capital account shall be no less than RMB 3 million in the 20 trading days before opening the account.

2. There is no serious bad credit record, and there are no conditions such as domestic laws and business rules prohibiting or restricting its participation in securities trading, and it has passed the comprehensive evaluation of member institutions.