Comparing Stock Connect with QFII/RQFII
LOCATION：
SZHK STOCK CONNECT/INTRODUCTION/Comparing Stock Connect with QFII/RQFII
LOCATION：
SZHK STOCK CONNECT/INTRODUCTION/Comparing Stock Connect with QFII/RQFII
The Shenzhen-Hong Kong Stock Connect, QFII and RQFII are channels through which international investors can invest in the Chinese Capital Market. Although they share many similarities, these three channels have differences as well. Below is a table illustrating some major differences between the three channels.
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Stock Connect |
QFII |
RQFII |
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Eligible Investor |
Shenzhen Connect: All investors will be eligible to trade shares listed on Main Board. At the initial stage, eligible investors for the ChiNext Market will be limited to institutional professional investors (IPI) as defined in the paragraph 15.2 of the Code of Conduct for Persons Licensed by or Registered with the SFC of Hong Kong. |
Selected institutional investors |
Selected institutional investors |
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Hong Kong Connect: Institutional investors, and Individual investors with a balance of at least ￥500,000 in their cash and securities accounts. |
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Currency |
Transactions in RMB |
Transactions in USD and other foreign currencies |
Transactions in RMB |
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Quota |
Applies to market as a whole |
Allocated to each institutional investor |
Allocated to offshore regions |
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Eligible Products |
Selected A-listed and H-listed Stocks |
RMB denominated products approved by CSRC* |
RMB denominated products approved by CSRC |
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Regulation of Funds |
Funds must return to origin; No lock up period |
Funds subject to lock up period and can stay in mainland afterwards |
Funds subject to lock up period and can stay in mainland afterwards |
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Investors’ Rights |
Subject to limitations** |
No limitations |
No limitations |
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*Stocks, bonds, warrants, funds, index futures fixed income products in interbank-market; primary market activities such as IPO, convertible bond issuance, additional shares issuance and seasoned equity offerings. **Shares acquired as entitlements can only be sold if they are not one of the eligible stocks of the Stock Connect but are SZSE-listed and cannot be bought or sold using the Stock Connect scheme if they are not SZSE-listed. |
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