Q:
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What are Shanghai Connect and Shenzhen Connect?
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A:
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These are securities trading and clearing links programmes aiming to achieve a mutual market access between the Mainland of China and Hong Kong.
These programmes enable
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1.
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the Hong Kong and overseas investors to trade ("Northbound Trades") in the designated securities listed on the Shanghai Stock Exchange (“SSE”) or the Shenzhen Stock Exchange (“SZSE”), and
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2.
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the Mainland investors to trade (“Southbound Trades”) in the designated securities listed on the Stock Exchange of Hong Kong Ltd (“SEHK”).
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Q:
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Are the Southbound Trades under Shanghai Connect and Shenzhen Connect subject to stamp duty in Hong Kong?
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A:
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Yes. As the securities are listed on SEHK which are Hong Kong stocks, the trade will be subject to stamp duty in Hong Kong.
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Q:
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Are the Northbound Trades under Shanghai Connect and Shenzhen Connect subject to stamp duty in Hong Kong?
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答：
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No. As the securities are not Hong Kong stocks, the trades will not subject to stamp duty in Hong Kong.
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Q:
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In what circumstances will non-trade transfers of SEHK Securities, SSE Securities and SZSE Securities be permitted under Shanghai Connect and Shenzhen Connect?
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A:
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It would be generally allowed under the following circumstances:
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1.
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succession;
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2.
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divorce;
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3.
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the dissolution, liquidation or winding-up of any company or corporation;
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4.
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donation to a charitable foundation;
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5.
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assistance in enforcing proceedings or action taken by any court, prosecutor or law enforcement agency; and
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6.
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any other transfers which may be permitted by the competent authorities for SEHK Securities or SSE for SSE Securities and SZSE for SZSE Securities .
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Q:
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Are the non-trade transfers of SEHK Securities in the Mainland of China subject to stamp duty in Hong Kong?
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A:
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Unless specifically exempted under the Stamp Duty Ordinance, any non-trade transfer of SEHK Securities in the Mainland will be deemed to be a sale and purchase of the relevant securities. The Mainland investors in SEHK Securities will be required to execute contract notes and pay stamp duty for the relevant transfers in Hong Kong.
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Q:
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How about the non-trade transfers of SSE Securities and SZSE Securities in Hong Kong, are they subject to stamp duty in Hong Kong?
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A:
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No. As SSE Securities and SZSE Securities are not Hong Kong stocks, any non-trade transfers of them in Hong Kong will not be subject to stamp duty in Hong Kong.
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FAQ
