Creation Link Guide - Hong Kong

02.12.2016

Key features

Securities listed in HKEx

Yes/NoRemarks
Settlement free of paymentYes  
Settlement against paymentYes 

Eligible settlement currencies:

  • CCASS: Hong Kong Dollar (HKD), Chinese Renminbi (RMB);
  • CMU: Hong Kong Dollar (HKD), Chinese Renminbi (RMB)
Bridge settlementYes  
Shaping facilityNo 
Partial settlementNoNot market practice but is permissible with special arrangements.
Settlement penalty feesYesFailure of  stock delivery might potentially incur buy-in penalties.
Pre-matchingYes Occurs upon receipt of customers’ instructions and is subject to counterparty availability.
Back-to-back processingYes CCASS-eligible securities only.
AllegementsYes  
Automatic compensationNoAdjustment is performed based on information received from the depository.
Registered securitiesYes
  • For dematerialised securities, registration takes place automatically upon settlement.
  • For physical securities, manual intervention will be required and not automatically.
Multi Market SecuritiesYesPlease refer to the Multi-securities Guide.
Lending and borrowingYes For all CMU instruments eligible in CBL.
Proxy votingYes  
Investment FundsNo 
Liquidity Hub ConnectNo 
Sale and purchase of rightsYes  
Repo servicesYesInternal Repo service for Bonds and Equities (refer to Cmax Product Guide). 
Market restrictionsNo 
FTTYesStamp duty incurred.
FATCA GIINYesNXUTG8.00175.ME.344

Type of linkCSD or settlement method
Indirect via Citibank N.A. (Hong Kong Branch) - hereinafter referred to as Citibank-Hong Kong Securities Clearing Company Ltd, operating CCASS
-Hong Kong Monetary Authority, operating the CMU system

China A-shares via Stock Connect

Yes/NoRemarks
Settlement free of paymentYes Please refer to specific settlement rules / settlement restriction under Settlement services.
Settlement against paymentYesEligible settlement currency: Chinese Renminbi (RMB).
Bridge settlementNo 
Shaping facilityNo 
Partial settlementNoNot market practice but is permissible with special arrangements.
Settlement penalty feesYesPlease refer to Settlement Process.
Pre-matchingYesOnly on Settlement Date. Occurs upon receipt of customers’ instructions and is subject to counterparty availability.
Back-to-back processingNo 
AllegementsYes 
Automatic compensationNo 
Registered securitiesYesA-shares are issued in scripless form.
Multi Market SecuritiesNo 
Lending and borrowingNo 
Proxy votingYes
Investment FundsNo 
Liquidity Hub ConnectNo 
Sale and purchase of rightsNo 
Repo servicesNo 
Market restrictionsYesPlease refer to Investment regulation.
FTTYesStamp duty incurred.
FATCA GIINNo 

Type of Link CSD or Settlement method
Indirect via Citibank N.A. (Hong Kong Branch) - hereinafter referred to as Citibank Hong Kong Securities Clearing Company Ltd, operating CCASS