Shenzhen-HK Stock Connect

• The concept of ShenzhenHong Kong Stock Connect

The Shenzhen-Hong Kong Stock Connect is a cross-border investment program modeled after the ShanghaiHong Kong Stock Connect, which was launched in November 2014 and which allows mainland investors to buy Hong Kong stocks, and vice versa. • Time to launch

The Shenzhen-Hong Kong Stock Connect should start in about four months. • Quota limit

There will be no aggregate quota under the ShenzhenHong Kong Stock Connect. The daily limits for the Shenzhen-Hong Kong Stock Connect will be the same as for Shanghai’s, 13 billion yuan ($1.97 billion) for orders going north to the mainland and 10.5 billion yuan for southbound traffic.

The overall trading quota of 550 billion yuan will be removed under the Shanghai-Hong Kong Stock Connect • Share scope

Investors buying into Shenzhen will have access to any stock in the Shenzhen Stock Exchange Component Index and Shenzhen Stock Exchange Small/Mid Cap Innovation Index that has a market value of no less than 6 billion yuan.

Any company that’s dual listed in Shenzhen and Hong Kong will also be available.

Investors buying into Hong Kong can purchase shares of small-cap companies listed in Hong Kong that have a market value of no less than HK$5 billion ($645 million).

Any company that’s dual listed in Hong Kong and the mainland market will also be available. • Qualified investors

Qualified investors to purchase Hong Kong shares through the stock connect should only be institutional investors and those individual investors each with no less than 500,000 yuan in his or her securities account and fund account.

Buying shares traded on Shenzhen’s ChiNext smallcap gauge will be limited to institutional investors at the “initial stage” of the Shenzhen-Hong Kong Stock Connect.