Introduction to the Hong Kong stock market and basic trading rules

1.Hong Kong stock code

Hong Kong stocks are divided into two categories: listed companies on the main board and GEM listed companies on the GEM.

Main Board listed companies:

Code with 01, 02, 03 and other non-08 targets, are the main board listed company code.

GEM listed companies:

The target of the code beginning with 08 is the GEM target. Such as WAC Holdings 08619.HK, Qiansheng Group 08475.HK.

Letter suffixes -B, -W, -S

Hong Kong stocks do not have A share warning signs, there will be no ST, *ST tips, but there are still some stocks in Hong Kong stocks with letter suffixes.

“-R”

First, the HKEx allows listed companies to trade in renminbi, and all companies listed on the HKEX that trade in renminbi will have a “-R” at the end of their stock names.

“-B”

On April 30, 2018, Hong Kong issued new Listing Rules, which, among other things, allow biotechnology companies that fail the main Board financial eligibility test to list in Hong Kong.

Biotech listed companies are often heavily hyped because of the high cost of R&D and the very good profit expectations once R&D is successful. In order to remind investors of the risks of unprofitable biotech listed companies, HKEX requires such listed companies to add “-B” after their stock abbreviation. Convenient identification.

“-W”

In 2019, the Hong Kong Stock Exchange added the same share different share system, if the company is listed in accordance with the same share different rights system, then the name will be added after the W.

2.Trading unit of Hong Kong stocks

The minimum trading unit for Hong Kong shares, like A-shares, is also “one lot”. However, one lot of A shares is 100 shares, but one lot of Hong Kong shares is not necessarily 100 shares. A lot of Hong Kong shares may be 100 shares, 500 shares, 1,000 shares, or 2,000 shares. When you are ready to trade, the system will remind you of the minimum number of trading units for the current stock.

3.Trading hours of Hong Kong stocks

Hong Kong stocks trade from Monday to Friday, and are closed on Saturday, Sunday and public holidays as follows: (1) Regular trading hours: 9:30 to 12:00; 13:00 to 16:00. (2) Morning bidding session: 09:00 to 09:20; Closing auction trading: 16:00 to 16:10.

4.Limits on the rise and fall of Hong Kong stocks

There is no limit on how much Hong Kong stocks can rise or fall. Hkex does not set a limit on the price of all trading varieties. The common quotation methods are limit order and market order. The former is traded at a specific price specified by the trader, and the latter is traded at the best price in the market at that time.

5.Settlement system for Hong Kong stocks

Hong Kong stocks implement a T+0 trading system, which means that stocks bought on the day can be sold on the day, or stocks sold on the day can also be bought on the day. The market is commonly known as “that day” trading. You can buy and sell the same stock multiple times in a day with the same amount of money. The T+0 trading system increases liquidity in the market as a whole.

The delivery time of Hong Kong stocks is T+2, which means that the stock traded today will be settled in the second working day after the securities company and the accounting firm have cleared.

6.What is day trading in Hong Kong?

day trading is T+0 trading, English name day trade; A transaction in which a user buys or sells a stock or security in the same trading day.