Hong Kong Stock Rules
Pre-opening and closing auctions, same-day trading and T+2 settlement, lot sizes, no price limits, stamp duty and Stock Connect: learn the rules before buying your first Hong Kong stock.
For: Beginners about to buy Hong Kong stocks (including through Stock Connect) or who have just started trading in Hong Kong
This course uses ideas from the courses below (optional; you can start right away).
- 1
Trading Sessions: Pre-opening, Continuous Trading and the Closing Auction
No sign-up neededHong Kong takes orders from 9:00, starts continuous trading at 9:30, breaks for an hour at lunch and runs a closing auction after 16:00, and each phase works differently.
5 min - 2
Same-Day Trading and T+2 Settlement
Text versionHong Kong stocks bought today can be sold today, but the formal settlement of cash and shares happens on the 2nd trading day after the trade, and sale money can only be withdrawn after that.
5 min - 3
Different Lot Sizes and Odd Lots
Text versionEach Hong Kong stock sets its own lot size, from 100 shares to several thousand; the minimum cost of one lot is the share price times the lot size.
6 min - 4
No Price Limits and the Volatility Control Mechanism (VCM)
Text versionHong Kong has no daily price limit, so big news can move a stock sharply within the day; some large stocks have the VCM, which forces a 5-minute cooling-off when the price moves too far too fast.
6 min - 5
Stamp Duty and Trading Costs
Text versionBuyers and sellers of Hong Kong stocks each pay 0.1% stamp duty, with anything under a dollar counted as a dollar; add trading fees, levies and broker commission and you have the cost of each trade.
5 min - 6
Stock Connect: How Mainland Investors Buy Hong Kong Stocks
Text versionStock Connect lets mainland investors trade selected Hong Kong stocks from their A-share account: quoted in Hong Kong dollars, settled in yuan, and open only on days when both markets can trade.
6 min