Brokerage
Trading Rules – Hong Kong Equity Securities
Trading is conducted on Monday to Friday (excluding public holidays) at the following times:
Trading HoursFull Day TradingHalf Day Trading
Auction Session
Pre-opening Session9:00 a.m. - 9:30 a.m.9:00 a.m. - 9:30 a.m.
Continuous Trading Session
Morning Session9:30 a.m. - 12:00 noon9:30 a.m. - 12:00 noon
Extended Morning Session12:00 noon to 1:00 p.m.Not Applicable
Afternoon Session12:00 noon - 4:00 p.m.Not Applicable
Auction Session
Closing Auction Session4:00 p.m. to a random closing between 4:08 p.m. and 4:10 p.m.12:00 noon to a random closing between 12:08 p.m. and 12:10 p.m.
Note: There is no Extended Morning Session and Afternoon Session on the eves of Christmas, New Year and Lunar New Year. There will be no Extended Morning Session if there is no Morning Session.
Hong Kong Securities Service Charges
ServiceFeeRemark
Brokerage
(Not specified in Chinese version)
Dealer assisted: 0.25% of transaction amount, minimum charge: HK$100
Online: 0.225% of transaction amount, minimum charge: HK$100Client has to opt for receiving e-statement
Stamp Duty0.1% of the amount of the consideration or of its value on every sold note and every bought noteCollected by HKSAR Government
Investor Compensation LevyCharges subject to SFC's announcement
Transaction Levy0.0027% of the transaction amountCollected by the SFC
Trading Fee0.005% of the transaction amountCollected by HKEx
CCASS Stock Settlement Fee0.002% of the transaction amount (Min. HK$2, Max. HK$100)
Custody FeeFree of charge
Cancellation of orders
Cancellation of orders entered in the Morning Session is permitted till 30 minutes before the Afternoon Session of the same trading day
Opening Quotations
  1. The opening quotation, if made during the Pre-opening Session, shall be made as follows : the first bid price (where there has been no first ask of the day) or the first ask price (where there has been no first bid of the day) shall not in any case deviate 9 times or more from the previous closing price, if available.
    The opening quotation, if made during the Continuous Trading Session, shall be made in accordance with the following requirements:
    1. where there has been no first ask of the day, the first bid price must be higher than or equal to the previous closing price minus twenty-four spreads or, in the case of Market Making Securities, the number of spreads prescribed by the Exchange from time to time;
    2. where there has been no first bid of the day, the first ask price must be lower than or equal to the previous closing price plus twenty-four spreads or, in the case of Market Making Securities, the number of spreads prescribed by the Exchange from time to time.
  2. provided that such first bid or first ask price shall not in any case deviate 9 times or more from the previous closing price, if available.
Quotations
Rule 506Rule 506A
For quotations of any non-automatch stocks other than the opening quotation, a buy order (other than a buy auction order) may be made during the Continuous Trading Session as follows: For quotations of any automatch stocks other than the opening quotation, a buy order (other than a buy auction order) may be made during the Continuous Trading Session as follows:
(where there are existing buy orders and sell orders on the respective primary queues)
a limit order may be made at a price within the range of twenty-four spreads below the current bid price and one spread below the current ask price;
(where there are existing buy orders and sell orders on the respective primary queues)
A.
a limit order may be made at a price within the range of twenty-four spreads below the current bid price and the current ask price;
B.
an enhanced limit order may be made at a price within the range of twenty-four spreads below the current bid price and nine spreads above the current ask price; and
C.
a special limit order may be made at a price higher than or equal to the current ask price.
(where there is no existing buy order on the primary queue)
a limit order may be made at a price within the range of one spread below the current ask price and twenty-four spreads or, in the case of Market Making Securities, the number of spreads prescribed by the Exchange from time to time, below whichever is the lowest of the current ask price, the previous closing price and the lowest transacted price of the day;
(where there is no existing buy order on the primary queue)
A.
a limit order may be made at a price within the range of the current ask price and twenty-four spreads or, in the case of Market Making Securities, the number of spreads prescribed by the Exchange from time to time, below whichever is the lowest of the current ask price, the previous closing price and the lowest transacted price of the day;
B.
an enhanced limit order may be made at a price within the range of nine spreads above the current ask price and twenty-four spreads or, in the case of Market Making Securities, the number of spreads prescribed by the Exchange from time to time, below whichever is the lowest of the current ask price, the previous closing price and the lowest transacted price of the day; and
C.
a special limit order may be made at a price higher than or equal to the current ask price.
(where there is no existing sell order on the primary queue)
a limit order may be made at a price higher than or equal to twenty-four spreads below the current bid price; or
(where there is no existing sell order on the primary queue)
a limit order or an enhanced limit order may be made at a price higher than or equal to twenty-four spreads below the current bid price.
(where there is no existing order on both primary queues)
a limit order may be made at a price higher than or equal to twenty-four spreads or, in the case of Market Making Securities, the number of spreads prescribed by the Exchange from time to time, below whichever is the lowest of the last ask price, the previous closing price and the lowest transacted price of the day provided that if both the previous closing price and the lowest transacted price of the day are not available, a limit order may be made at a price higher than or equal to or lower than the last ask price.
(where there is no existing order on both primary queues)
a limit order or an enhanced limit order may be made at a price higher than or equal to twenty-four spreads or, in the case of Market Making Securities, the number of spreads prescribed by the Exchange from time to time, below whichever is the lowest of the last ask price, the previous closing price and the lowest transacted price of the day provided that if both the previous closing price and the lowest transacted price of the day are not available, a limit order or an enhanced limit order may be made at a price higher than or equal to or lower than the last ask price.

Rule 507Rule 507A
For quotations of any non-automatch stocks other than the opening quotation, a sell order (other than a sell auction order) may be made during the Continuous Trading Session as follows:For quotations of any automatch stocks other than the opening quotation, a sell order (other than a sell auction order) may be made during the Continuous Trading Session as follows:
(where there are existing buy orders and sell orders on the respective primary queues)
a limit order may be made at a price within the range of twenty-four spreads above the current ask price and one spread above the current bid price;
(where there are existing buy orders and sell orders on the respective primary queues)
A.
a limit order may be made at a price within the range of twenty-four spreads above the current ask price and the current bid price;
B.
an enhanced limit order may be made at a price within the range of twenty-four spreads above the current ask price and nine spreads below the current bid price; and
C.
a special limit order may be made at a price lower than or equal to the current bid price.
(where there are existing buy orders and sell orders on the respective primary queues)
a limit order may be made at a price within the range of one spread above the current bid price and twenty-four spreads or, in the case of Market Making Securities, the number of spreads prescribed by the Exchange from time to time, above whichever is the highest of the current bid price, the previous closing price and the highest transacted price of the day;
(where there is no existing sell order on the primary queue)
A.
a limit order may be made at a price within the range of the current bid price and twenty-four spreads or, in the case of Market Making Securities, the number of spreads prescribed by the Exchange from time to time, above whichever is the highest of the current bid price, the previous closing price and the highest transacted price of the day;
B.
an enhanced limit order may be made at a price within the range of nine spreads below the current bid price and twenty-four spreads or, in the case of Market Making Securities, the number of spreads prescribed by the Exchange from time to time, above whichever is the highest of the current bid price, the previous closing price and the highest transacted price of the day; and
C.
a special limit order may be made at a price lower than or equal to the current bid price.
(where there is no existing buy order on the primary queue)
a limit order may be made at a price lower than or equal to twenty-four spreads above the current ask price; or
(where there is no existing buy order on the primary queue)
a limit order or an enhanced limit order may be made at a price lower than or equal to twenty-four spreads above the current ask price.
(where there is no existing order on both primary queues)
a limit order may be made at a price lower than or equal to twenty-four spreads or, in the case of Market Making Securities, the number of spreads prescribed by the Exchange from time to time, above whichever is the highest of the last bid price, the previous closing price and the highest transacted price of the day provided that if both the previous closing price and the highest transacted price of the day are not available, a limit order may be made at a price lower than or equal to or higher than the last bid price.
(where there is no existing order on both primary queues)
a limit order or an enhanced limit order may be made at a price lower than or equal to twenty-four spreads or, in the case of Market Making Securities, the number of spreads prescribed by the Exchange from time to time, above whichever is the highest of the last bid price, the previous closing price and the highest transacted price of the day provided that if both the previous closing price and the highest transacted price of the day are not available, a limit order or an enhanced limit order may be made at a price lower than or equal to or higher than the last bid price.

Rules 506, 506A, 507 and 507A do not apply to auction orders and such orders can only be input into the System during the Pre-opening Session subject to Rule 501G. Limit orders, enhanced limit orders and special limit orders can only be input into the System during the trading hours prescribed in Rule 501(1) provided that, if applicable, such orders in respect of the Extended Trading Securities can also be input into the System during the Extended Morning Session.
Short Selling
“Short selling” or “short sale”:
  1. (a) subject to paragraph (b), means the sale of a security in respect of which the seller, or the person for whose benefit or on whose behalf the sale is made, has a presently exercisable and unconditional right to vest the security in the purchaser by virtue of having:
    (i)
    under a securities borrowing and lending agreement:
    (A)
    borrowed the securities; or
    (B)
    obtained a confirmation from the counterparty to the agreement that the counterparty has the security available to lend to him;
    (ii)
    a title to other security which is convertible into or exchangeable for the security to which the sale relates;
    (iii)
    an option to acquire the security to which the sale relates;
    (iv)
    rights or warrants to subscribe to and to receive the security to which the sale relates; or
    (v)
    entered into with any other person an agreement or arrangement of a description prescribed by rules made under section 397 of the Securities and Futures Ordinance, for the purposes of this sub-paragraph;
  1. (b) in relation to a(ii), (iii), (iv) or (v) above, does not include a sale where the seller, or the person for whose benefit or on whose behalf the sale is made, has, at the time of the sale, issued unconditional instructions to obtain the security to which the sale relates.
Major Requirements
With the exception of Securities Market Maker Short Selling by a Securities Market Maker, Structured Product Liquidity Provider Short Selling by a Structured Product Liquidity Provider, Designated Index Arbitrage Short Selling by a Designated Index Arbitrage Short Selling Participant, Stock Futures Hedging Short Selling by a Designated Stock Futures Hedging Short Selling Participant, Structured Product Hedging Short Selling by a Structured Product Hedging Participant and Options Hedging Short Selling by a Market Maker or an Options Hedging Participant (please refer to Schedules 14, 15 and 18 of the Rules of the Exchange for details), the major requirements for Exchange Participants to participate in short selling are as follows:
  1. Exchange Participants who conduct short selling transaction must have the presently exercisable and unconditional right to vest the security in the purchaser;
  2. Short selling shall be limited to transactions in Designated Securities effected on the Exchange during the Continuous Trading Session;
  3. Exchange Participants must, when inputting a short selling order into the AMS/3 system, indicate such matters and in such manner as the Exchange shall from time to time determine, that the order is a short selling order;
  4. Exchange Participants must follow the tick rule which stipulates that short sales of Designated Securities be made at prices not below the best current ask price except where the Designated Security is a Market Making Security approved by the Commission to be excluded from the application of tick rule; and
  5. Exchange Participants engaged in short selling shall comply at all times with the Ordinance as amended from time to time, and the Regulations regarding short selling in the Eleventh Schedule to these Rules as approved by the Exchange from time to time.
Securities Borrowing and Lending
A borrower shall provide collateral for its borrowing. The collateral shall be in a readily realisable form and acceptable to the lender.
  1. (a) The amount of collateral provided shall at all times be not less than 100% of the current market value of the borrowed securities. Where the securities borrowing is for the purposes of a short sale (as defined in the Eleventh Schedule to the Rules), the amount of collateral deposited by the borrower shall at all times be not less than 105% of the current market value of the relevant uncovered securities borrowing position. (b) Where an Exchange Participant maintains uncovered securities borrowing positions on its own account or for its clients, it shall mark to market (at least daily) such uncovered securities borrowing positions and shall further maintain the level of the collateral stipulated in Regulation (9)(a) above. In marking to market, an Exchange Participant shall when: (i) marking to market only once daily, mark against the closing price of the relevant security on the previous trading day as published by the Exchange; or (ii) marking to market two or more times daily, mark on at least the first occasion, against the closing price of the relevant security on the previous trading day as published by the Exchange.
  2. In the event that at all times the value of the collateral becomes less than 100% or 105% where the securities borrowing is in relation to a short sale (or such higher percentage as agreed between the borrower and the lender) of the current market value of the borrowed securities, the lender shall at least daily require the borrower to increase the amount of collateral to 100% or 105% where the securities borrowing is in relation to a short sale (or such higher percentage as may have been agreed upon).
  3. In the event the collateral becomes greater in value than 100% or 105% where the securities borrowing is in relation to a short sale (or such higher percentage as agreed between the borrower and the lender) of the current market value of the borrowed securities, the borrower may require the lender to release collateral which is in excess of 100%, or 105% where the securities borrowing is in relation to a short sale or such percentage which has been agreed upon.
Dealings in Suspended Securities
Under no circumstances shall an Exchange Participant deal in suspended securities otherwise than as set out in this Rule.

All information contained herein is for reference only. If there is any inconsistency and ambiguity between the Chinese and English versions, the English version shall prevail.