Detailed Rules for Stock Dividend of Shanghai-Hong Kong Stock Connect

Both Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect are positive attempts for A-shares to attract foreign investors, which will greatly enhance the internationalization of the A-share market and finally prepare for integration into the global capital market. Let me first talk about the stock dividend rules of Shanghai-Hong Kong Stock Connect.

How soon will the dividend of Hong Kong Stock Connect arrive?

I. Detailed Rules for Stock Dividends of Shanghai-Hong Kong Stock Connect

1. T+2 settlement is implemented in the Hong Kong market. Investors who buy Hong Kong Stock Connect shares on T day can only obtain the rights and interests of relevant securities after the settlement on T+2 day is completed. For example, if the registration date is allocated to the stock of Hong Kong Stock Connect on T+ 1 day, investors who buy the stock on T day cannot enjoy the dividend. In contrast, investors who invest in Shanghai A-shares and buy on T-day can get the rights and interests of related securities.

2. For the dividends obtained by mainland individual investors investing in Hong Kong-listed H shares through Shanghai-Hong Kong Stock Connect, H-share companies should apply to China Registration and Clearing Company, and China will provide the list of mainland individual investors to H-share companies, which will withhold and pay personal income tax at the rate of 20%. Dividends and bonuses obtained by mainland individual investors through investing in non-H shares listed on the Hong Kong Stock Exchange through Shanghai-Hong Kong Stock Connect shall be settled in China, and personal income tax shall be withheld and remitted at the rate of 20%.

2. What kinds of bonuses are there?

1, paid in cash, is called dividend distribution. Is to convert the company's profits into the actual expected annualized expected returns of shareholders.

It is issued in the form of dividend, which is called dividend. Is to convert the company's profits into equity.

3. Issuing in the form of capitalization is called capitalization. Is to convert the company's capital reserve into equity.