China Connect – Restriction on Mainland Investors from Northbound Trading

Overview: 

The Hong Kong Exchange (“HKEX”) issued a circular on the banning of Mainland investors from Northbound trading, effective on 25 July 2022. Clients who trade China Connect Securities through Interactive Brokers are required to comply with these requirements.

I. Which clients are classified as Mainland investors?

  (a) Individuals that possess Mainland ID documents; or
  (b) Holders of a joint account if one of the holders is considered as Mainland investor under (a); or
  (c) Corporate or unincorporated entities which are registered in the Mainland.


II. Which circumstances are exempt from the classification?

The following investors will NOT be considered as “Mainland Investors” and may continue to buy and sell China Connect Securities with Interactive Brokers.

  (a) Individual client who holds:

       i. A Hong Kong or Macao permanent ID; or
      ii. An One-way Permit for Proceeding to Hong Kong and Macao; or
     iii. An identity document as proof of permanent residence in a country or region outside Mainland China.

  (b) A branch or subsidiary which is lawfully registered in Hong Kong or overseas.


III. How are Existing Accounts with BCANs Handled?

Effective Date Notice
From 25 July 2022 to 23 July 2023 Existing accounts who are Mainland investors with registered BCANs can still buy and sell China Connect Securities.
From 24 July 2023 Existing accounts who are Mainland investors can only sell any China Connect Securities.


IV. Reference

The above information is provided for convenience.  For more detailed information, please refer to HKEX’s circular on the banning of Mainland investors from Northbound trading:  https://www.hkex.com.hk/-/media/HKEX-Market/Services/Circulars-and-Notices/Participant-and-Members-Circulars/SEHK/2022/CT08822E.pdf