What are the conditions for buying Hong Kong stocks?

Eligible individual investors can buy Hong Kong stocks through Shanghai-Hong Kong Stock Connect.

Individual investors opening Shanghai-Hong Kong Stock Connect need shareholder accounts holding A shares of Shanghai Stock Exchange and three-party depository with RMB, and the total of securities accounts and capital accounts cannot be less than 500,000 yuan, excluding funds and securities assets integrated through securities lending and the market value of the New Third Board.

At the same time, it is necessary to pass the business evaluation of Shanghai-Hong Kong Stock Connect, and there is no record of serious dishonesty and no record of prohibited trading of Hong Kong Stock Connect. On this basis, for qualified mainland investors who want to trade Hong Kong Stock Connect under Shanghai-Hong Kong Stock Connect, they need to entrust the trading authority of Shanghai-Hong Kong Stock Connect to mainland brokers, and then the brokers entrust the order routing to Shenzhen Securities Trading Service Company, and finally submit the order to the Stock Exchange.

The Shanghai-Hong Kong Stock Connect transaction highlights the convenience arrangement to the maximum extent, and adheres to the "four noes" principle that institutions in the two places have always emphasized, that is, it does not change the existing laws, regulations and supervision system, does not change the organizational structure of the securities market, basically does not change the trading habits of investors, and does not increase the transaction costs of investors in principle.

Many investors were impressed by the intraday trading in Hong Kong market and interpreted it as "T+0". In fact, the "T+2" settlement system implemented in Hong Kong (buying on T day and receiving on T+2 day) only allows investors to sell stocks when T day and T+ 1 day have not received their accounts.

Extended data

According to the tax arrangements between the Mainland and Hong Kong and the relevant provisions of the tax treaties signed between China and most countries, the income from share transfer of non-residents is basically not subject to income tax except in a few cases. Therefore, the policy is clear, and the difference between investors (including enterprises and individuals) buying and selling A shares in the Hong Kong market is temporarily exempt from income tax.

In addition to Shanghai-Hong Kong Stock Connect, foreign investors have also invested in the domestic securities market through QFII and RQFII. Considering the similarities between QFII, RQFII and Shanghai-Hong Kong Stock Connect in transaction nature and economic essence, it is appropriate to consider all aspects of tax policy. Therefore, the income from the transfer of equity investment assets such as shares acquired by QFII and RQFII should be given tax-free treatment.

In addition, starting from 201411kloc-0/7, the difference income of unit investors in the Hong Kong market who buy and sell A shares listed on the Shanghai Stock Exchange through Shanghai-Hong Kong Stock Connect will be temporarily exempted from business tax. Investors in Hong Kong market who buy, sell, inherit and donate A shares listed on Shanghai Stock Connect shall pay stamp duty on securities (stocks) transactions according to the current tax system in the Mainland. Mainland investors who buy, sell, inherit and donate shares listed on the stock exchange through Shanghai-Hong Kong Stock Connect shall pay stamp duty in accordance with the current tax law of the Hong Kong Special Administrative Region.

People's Daily Online-Understanding Shanghai-Hong Kong Stock Connect with a Picture

People's Daily Online-Mainlanders' profit from buying Hong Kong stocks does not include tax (policy interpretation, express delivery)