What is the Stock Connect Reference Rate? What is Southbound Connect?

The reference exchange rate refers to the exchange rate provided by the exchange bank and announced to the market through the exchange** before the market opens on the trading day of the Hong Kong Stock Connect. The reference exchange rate includes the HKD** reference price and the HKD selling reference price. Exchanges and onshore** companies use this reference rate for front-end monitoring of investors' funds.

That is, when investors ** Hong Kong stocks, ** company uses the Hong Kong dollar selling reference price to calculate the RMB funds that investors need to freeze; When an investor sells a Hong Kong stock, the company uses the reference price of HKD to calculate the investor's available RMB funds. Investors should consult their custodian company for details.

What does Southbound mean.

Recently, a "What is Hong Kong Stock Connect?" The question sparked heated discussions among the majority of netizens, and it caused a stir on the Internet. So, what is Hong Kong Stock Connect?

What are Northbound and Southbound Funds? The northbound capital refers to the funds invested by Hong Kong to the mainland, and the southbound funds are the funds invested by the mainland to Hong Kong. So what's going on?

Let me share my thoughts with you.

One. We can't buy Hong Kong's ** directly in A shares, so we have Hong Kong Stock Connect. Hong Kong Stock Connect can help us apply to buy Hong Kong through the exchange, so that we can realize the function of buying Hong Kong stocks with our funds. <>

Two. Shenzhen-Hong Kong Stock Connect, Shanghai-Hong Kong Stock Connect not only includes Hong Kong Stock Connect, but also Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect. Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect are completely opposite to Hong Kong Stock Connect.

Because A-shares do not allow foreign capital to participate directly, but they can indirectly participate in the A-share market through Hong Kong's Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect, so Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect have become the symbol of foreign capital. <>

Three. Northbound funds and southbound funds refer to the Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect, which refer to the funds purchased by Hong Kong from the north to the mainland, but the main components in them are foreign capital. The southbound capital is the Hong Kong Stock Connect, which means that the mainland is going south to buy Hong Kong**. <

The above is my opinion on this issue, which is purely personal and for reference only. If you have any different opinions, you can leave a message in the comment area and discuss it together. After reading it, remember to like and follow.

1. Don't be in a hurry to buy **, don't just want to buy the lowest price, this is unrealistic. It is also good to really pull up**You are the high price**, so it is better to buy**miss, not to be at fault, not to buy and sell blindly**, it is best to buy **familiar with the disk**.

2. If you are not familiar with it, you can simulate trading first, be familiar with the nature of stocks, it is best to follow for a day or two, familiar with the operation methods, and you can master the best points.

3. Pay attention to the necessary technical analysis, pay attention to the changes in trading volume and the language of the disk (the situation of the disk buy and sell orders).

4. Try to choose hot spots and appropriate points, so that the stock price can be out of the cost area after the same day. However, from the wishes of the participants, it is desirable to have as little as possible, and it is better to reach the limit, which is one trading day, and if T+0 trading is allowed, the goal is not to have overnight chips on that day. Of course, it is quite difficult to really do a good job of ****, and it requires investors to pay unimaginable energy.

All the gains and profits are all due to their own luck. In general, look at ability, look at eyesight, look at luck.

"Shanghai-Hong Kong Stock Connect" is the abbreviation of "Shanghai-Hong Kong ** Market Trading Interconnection Mechanism", which includes two parts: "Shanghai-Hong Kong Stock Connect" and "Hong Kong Stock Connect under Shanghai-Hong Kong Stock Connect" (hereinafter referred to as "Hong Kong Stock Connect").

Among them, "Shanghai-Hong Kong Stock Connect" refers to investors entrusting Hong Kong brokers to report to the Shanghai Stock Exchange through a ** trading service company established by the Stock Exchange in Shanghai, and to trade the Shanghai Stock Exchange listing within the scope of the "Shanghai-Hong Kong Stock Connect".

"Hong Kong Stock Connect under Shanghai-Hong Kong Stock Connect" refers to investors entrusting mainland ** companies.

Through the ** trading service company established by the Shanghai Stock Exchange in Hong Kong, it declares to the Stock Exchange to trade the listing of the Stock Exchange within the scope of the "Shanghai-Hong Kong Stock Connect".

Hong Kong Stock Connect is to connect Hong Kong** with the Shanghai Stock Exchange and the Shenzhen Stock Exchange, mainland shareholders can buy companies listed in Hong Kong through the Shanghai Stock Exchange and Shenzhen Stock Exchange**, and Hong Kong shareholders can also buy ** listed companies in Shanghai and Shenzhen.

Hong Kong Stock Connect is a kind of **, its scope is the Hong Kong Stock Exchange Hang Seng Composite LargeCap Index, the Hang Seng Composite MidCap Index constituent stocks and the Hong Kong Stock Exchange, Shanghai ** Exchange A+H share companies**. The two parties can adjust the scope of investment targets according to the pilot situation.

Hong Kong Stock Connect refers to investors entrusting SSE members to declare to the SEHK through the SSE** trading service company to trade on the SEHK within the scope of the specified listing**.

What does Southbound mean.

Hello, the mid-point price of the reference exchange rate of Shanghai-Shenzhen-Hong Kong Stock Connect and **Hong Kong Stock Connect is the same, and the settlement exchange rate depends on the size and direction of the respective net trading amount of the Shanghai-Shenzhen-Hong Kong Stock Connect market, as well as their respective exchange rates, so the settlement exchange rate of Shanghai-Shenzhen-Hong Kong Stock Connect is not necessarily the same.

Inconsistencies, there will be ups and downs.

Hello, for Hong Kong Stock Connect transactions conducted through the Hong Kong Stock Connect under the Shenzhen-Hong Kong Stock Connect and the Hong Kong Stock Connect under the Shanghai-Hong Kong Stock Connect, the reference exchange rate mid-parity is provided by the exchange bank at the end of the previous day, and the mid-parity of the reference exchange rate applicable to the two channels on a daily basis is the same.

Hello, Hong Kong Stock Connect is a kind of **, its scope is the Hong Kong Stock Exchange Hang Seng Composite LargeCap Index, the Hang Seng Composite MidCap Index constituent stocks and both the Hong Kong Stock Exchange, Shanghai ** Exchange A+H share companies**. The two parties can adjust the scope of investment targets according to the pilot situation. In the initial phase of the pilot, the SFC required that domestic investors participating in the Stock Connect be institutional investors only.

Hello, A** field is a relatively closed market, only mainland funds can be bought and sold, if foreign funds want to buy ** can only be through QFII, but QFII has a certain amount, up to a certain amount can not continue to buy.

Hong Kong Stock Connect is an interconnection between the mainland and Hong Kong, through which foreign capital can be purchased, and mainland funds can also buy Hong Kong stocks.

The reason why the Hong Kong Stock Connect reference rate is so expensive is that it is calculated according to the spot exchange rate of the interbank foreign exchange market.

Here it is necessary to explain the spot rate and the ** price and the ask price in the exchange rate. The spot rate is the rate at which a transaction is made between two banks at the current market rate. The ** price and the selling price refer to the ** and sell ** quoted by the bank when conducting foreign exchange transactions, that is, the ** delay when the bank buys foreign exchange from the customer and the ** foreign exchange ** when the bank sends the customer **foreign exchange.

So why is the Hong Kong Stock Connect reference rate so expensive? There are two main reasons. First, the Hong Kong Stock Connect reference rate is calculated based on the spot exchange rate, which is usually higher.

1.Before converting according to the reference exchange rate of Hong Kong Stock Connect, compare multiple banks and choose the bank with a more favorable exchange rate for exchange.

2.Take advantage of the fluctuations in the foreign exchange market and choose to exchange when the exchange rate is low.

In short, the reason why the reference exchange rate of Hong Kong Stock Connect is so expensive is mainly because of the high spot exchange rate and bank fees. Investors can take corresponding measures to reduce the cost of exchange.