China A-share market is one of the largest in the world, offering access to companies listed on the Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE). With the Stock Connect program, international investors can now access a selected group of China’s A-shares through Tiger Brokers, a platform that facilitates seamless trading across borders.
However, not all securities are eligible for trading through Stock Connect. In this blog, they will explore which securities can be traded via Stock Connect A-shares using Tiger Brokers.
Eligible Securities for Stock Connect A-Shares
The Stock Connect program provides access to specific A-shares and ETFs listed on the Shanghai and Shenzhen stock exchanges. Tiger Brokers offers clients the ability to purchase and trade these eligible securities through the Shanghai Connect and Shenzhen Connect mechanisms.
Here’s a closer look at what is included in Stock Connect:
– A-shares: These are stocks of mainland Chinese companies listed on the SSE or SZSE and traded in Chinese yuan (RMB). A-shares are the main focus of Stock Connect and are widely regarded as representing China’s domestic economy. These shares span across various sectors, including finance, technology, manufacturing, and energy.
– ETFs (Exchange-Traded Funds): In addition to A-shares, Stock Connect also includes selected ETFs listed on the Shanghai and Shenzhen exchanges. ETFs provide diversified exposure to a range of assets, and certain China-focused ETFs are available for trading through Stock Connect.
For a comprehensive and up-to-date list of eligible A-shares and ETFs, investors are encouraged to refer to the HKEX (Hong Kong Stock Exchange) website, which provides the most current information on all eligible securities under the Stock Connect program.
Securities Not Included in Stock Connect
While the Stock Connect program opens up access to many A-shares and ETFs, it is important to understand that certain products are not included in the tradable securities under this mechanism. Currently, the following securities are excluded from Stock Connect trading via Tiger Brokers:
– B-shares: B-shares are stocks traded in foreign currencies (such as USD or HKD) and are not part of the Stock Connect program.
– Bonds: Fixed-income products like bonds are also excluded from Stock Connect, meaning investors cannot trade bonds listed on the SSE or SZSE through this channel.
– Other Securities: Beyond A-shares and ETFs, other types of financial products such as warrants and structured products are not included in Stock Connect.
Additionally, while A-shares from the SSE STAR Market and SZSE ChiNext Market are popular among domestic investors due to their focus on technology and innovative companies, trading in these markets is currently not supported through Stock Connect. Investors should stay updated on any future developments as regulations evolve.
Why is Stock Connect Important?
Stock Connect serves as a significant step in linking the financial markets of mainland China with the global investment community. It provides global investors with a channel to access China’s domestic A-share market without needing to open a separate account in mainland China. By using platforms like Tiger Brokers, investors can participate in the Stock Connect program while benefiting from the ease of trading across borders.
Conclusion
Through Tiger Brokers and the Stock Connect program, investors can access a wide range of A-shares and ETFs listed on the Shanghai and Shenzhen stock exchanges. However, it’s essential to understand which securities are included and which are not part of the program. A-shares and ETFs are the main products available for trading, while other products such as B-shares, bonds, SSE STAR Market and SZSE ChiNext Market shares are currently excluded.
