Eligible individual investors can purchase Hong Kong stocks through Shanghai-Hong Kong Stock Connect.
To open Shanghai-Hong Kong Stock Connect, individual investors need to hold a shareholder account of SSE A-shares and a third-party deposit that has handled RMB, and the total of the securities account and capital account cannot be less than RMB 500,000, excluding passing through The funds and securities assets invested in securities lending transactions, and the market value of the New OTC Market.
At the same time, they must pass the Shanghai-Hong Kong Stock Connect business evaluation, and have no serious dishonesty record and are prohibited from engaging in southbound trading. On this basis, for qualified mainland investors who want to trade Southbound Trading under the Shanghai-Hong Kong Stock Connect, they need to entrust a purchase and sale to a mainland securities firm with Shanghai-Hong Kong Stock Connect trading authority, and then the securities firm will entrust the order routing to the Shenzhen Securities Exchange The service company finally submits the order to the Stock Exchange.
The Shanghai-Hong Kong Stock Connect transaction highlights the convenience arrangements to the maximum extent and adheres to the "four no's" principle that institutions in both places have always emphasized, that is, it does not change the current laws, regulations and regulatory systems, and it does not change the securities market. The organizational structure basically does not change investors’ trading habits, and in principle does not increase investors’ transaction costs.
Many investors are deeply impressed by the intraday reversal trading in the Hong Kong market and understand it as "T+0". In fact, the "T+2" settlement system implemented in Hong Kong (buy on T day, The stock arrives in the account on T+2), but investors are allowed to sell stocks on the T day and T+1 day when the stock has not yet arrived in the account.
Extended information
According to the tax arrangements between the Mainland and Hong Kong and the relevant provisions of the tax treaties signed by my country and most countries, income from the transfer of shares of non-residents is basically not taxable except in a few cases. levied income tax. Therefore, the policy is clear that income tax is temporarily exempted from the price difference between the purchase and sale of A shares by Hong Kong market investors (including enterprises and individuals).
In addition to Shanghai-Hong Kong Stock Connect, currently foreign investors have invested in the domestic securities market through QFII and RQFII. Considering the similarities in transaction nature and economic substance between QFII, RQFII and Shanghai-Hong Kong Stock Connect, it is appropriate to consider them comprehensively in terms of tax policies. Therefore, income from the transfer of equity investment assets such as stocks obtained by QFIIs and RQFIIs will be given tax-free treatment.
In addition, starting from November 17, 2014, business tax will be temporarily exempted from the price difference income of unit investors in the Hong Kong market from buying and selling A shares listed on the Shanghai Stock Exchange through Shanghai-Hong Kong Stock Connect. Investors in the Hong Kong market who buy, sell, inherit or donate A-shares listed on the Shanghai Stock Exchange through Shanghai-Hong Kong Stock Connect must pay stamp duty on securities (stock) transactions in accordance with the current mainland tax regulations. Mainland investors who buy, sell, inherit or donate stocks listed on the Stock Exchange through Shanghai-Hong Kong Stock Connect must pay stamp duty in accordance with the current tax laws of the Hong Kong Special Administrative Region.
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People's Daily Online - Mainland residents are exempt from individual tax on profits from buying Hong Kong stocks (Policy Interpretation·Express)