Examples of SZHK Stock Connect in a sentence
Certain Funds may invest in eligible China A-Shares through the SHHK Stock Connect, the SZHK Stock Connect, or other similar scheme(s) established under applicable laws and regulations from time to time, as appropriate.
However, there is no guarantee on how long the exemption will last and there can be no certainty that the trading of China A- Shares invested through SHHK Stock Connect and SZHK Stock Connect (“SC Securities”) will not attract a liability to such tax in the future.
Differences in trading day The SHHK and SZHK Stock Connect will only operate on days when both the relevant PRC and Hong Kong markets are open for trading and when banks in the relevant markets are open on the corresponding settlement days.
The Funds which invest through the SHHK and SZHK Stock Connect may be subject to a risk of price fluctuations in China A-Shares during the time when the relevant Stock Connect is not trading as a result.
Further, the “connectivity” in the SHHK and SZHK Stock Connect requires routing of orders across PRC and Hong Kong.
Where a suspension in the Northbound trading through the SHHK Stock Connect or the SZHK Stock Connect is affected, a Fund’s ability to access the PRC market will be adversely affected.
In such a case, the Fund’s ability to access the China A-Share market (and hence to pursue its investment strategy) through the SHHK and SZHK Stock Connect will be adversely affected.
Operational risk The SHHK and SZHK Stock Connect is premised on the functioning of the operational systems of the relevant market participants.
The SZHK Stock Connect is a similar securities trading and clearing linked programme developed by SEHK, SZSE, HKSCC and CSDCC for the establishment of mutual stock market access between mainland China (Shenzhen) and Hong Kong.
Therefore, quota limitations may restrict a Fund’s ability to invest in China A-Shares through SHHK and SZHK Stock Connect on a timely basis.The Daily Quota may change from time to time without prior notice and investors should refer to the SEHK website and other information published by the SEHK for up-to-date information.