Amendment on Investor and Participant Eligibility for Shanghai and Shenzhen Connect

Amendment on Investor and Participant Eligibility for Shanghai and Shenzhen Connect

According to the Implementation Measures for Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect of SSE and SZSE respectively with effect from 25 July 2022, Mainland investors will be prohibited from buying or selling China Connect Securities through Northbound Trading under Stock Connect. After the transitional period (from 24 July 2023), 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 Existing China Connect Securities held by Mainland investors could be sold.

Mainland investors include:

(a) individuals that possess Mainland ID documents, including the Mainland Resident’s Household Register (“Hukou”), Resident Identity Card, Passport of the People’s Republic of China , and the Exit/ Entry Permit for Travelling to and from Hong Kong and Macao;

(b) holders of a joint account if one of the holders is considered as Mainland investor under (a); and

(c) 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 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.