Stock Connect is the cross-border link between Hong Kong and the Shanghai and Shenzhen exchanges. Shanghai Connect launched in 2014 and Shenzhen Connect in 2016. It's the main way international investors trade mainland A-shares without an onshore licence.
Two directions
- Northbound: international investors, through Hong Kong brokers, buy eligible Shanghai and Shenzhen shares. Flows are widely watched as "北向资金".
- Southbound: eligible mainland investors buy eligible Hong Kong shares.
What's eligible?
Mostly constituents of major indices plus A-shares with H-share listings. The eligible universe expands from time to time, and it's published by the exchanges.
Mechanics to know
- A-share rules apply: T+1 for shares, daily price limits, 100-share lots.
- Trading happens only when both markets are open, so check holiday calendars.
- Daily quotas cap net buying in each direction.
- Shares are held through Hong Kong's central clearing system (nominee structure).
Risks
Currency (CNY), regulatory and policy shifts, liquidity in small caps, and suspensions. This is education, not advice.