Creation Link Guide - China - B-Shares

03.03.2015

Key features

Yes/NoRemarks
Settlement free of paymentYes

For China B-shares:

  • Trades at Shanghai Stock Exchange: USD;
  • Trades at Shenzhen Stock Exchange: HKD.

CSDCC requirement for NCBO.

For China A shares:

  • CBL only offers via the Shanghai-HongKong Stock Connect. Please see Hong Kong CLG for more information.
Settlement against paymentYes

For China B-shares:

  • Trades at Shanghai Stock Exchange: USD;
  • Trades at Shenzhen Stock Exchange: HKD.
Bridge settlementNo 
Shaping facilityNo 
Partial settlementNo 
Settlement penalty feesYesShort selling and long purchases (that is, purchases without sufficient funds) are prohibited on the Shanghai and Shenzhen Stock Exchanges.
Pre-matchingYes 
Back-to-back processingNo 
AllegementsNo 
Automatic compensationNo 
Registered securitiesYesRegistration takes place automatically upon settlement.
Multi Market SecuritiesNoRefer to the Multi-securities Guide.
Lending and borrowingNo 
Proxy votingYes 
Investment FundsNo 
Liquidity Hub ConnectNo 
Sale and purchase of rightsNo 
Repo servicesNo 
Market restrictionsNoInvestments are subject to the investor’s application for an investor code at CSDCC Shanghai and/or Shenzhen.

All B shares to be deposited in CBL must be registered in the names of both “Clearstream” and the underlying customers.
FTTNo 
FATCA GIINNo 
MiscellaneousYesThe opening of individual investor accounts by CBL is not permitted.
Type of linkCSD or settlement method
Indirect link via HSBC ShanghaiChina Securities Depository and Clearing Corporation (CSDCC)