Indore Investment：Northbound Trading and Settlement Flow

For clearing and settlement, CSDC and HKSCC established a clearing link and became each other’s clearing participant to provide clearing services for Shanghai-Hong Kong Stock Connect. In other words, CSDC and HKSCC will settle with each other and undertake the settlement obligations of their respective clearing participants’ trades.

For Northbound trades, HKSCC opens and maintains an omnibus stock account with CSDC and holds SSE securities in its omnibus account on behalf of CCASS (the Central Clearing and Settlement System operated by HKSCC) participants. HKSCC settles for Northbound trades executed on SSE with CSDC on behalf of its clearing participants. Northbound trades are cleared and settled according to the settlement cycle of the Shanghai securities market. Hong Kong and overseas investors trade and settle SSE securities in RMB only.Indore Investment

For Southbound trades, CSDC holds HK securities in its omnibus account maintained in HKSCC on behalf of its clearing participantsNagpur Stock. CSDC settles for Southbound trades executed on HKEX with HKSCC on behalf of its clearing participantsIndore Stock. Southbound trades are cleared and settled according to the settlement cycle of the Hong Kong securities market. Mainland investors trade HKEX securities in HKD only and settle the trades in RMB.

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