1. HK Stock Exchange Trading Hours
Monday to Friday:
[Call auction period for morning session]
HKT 09:00 – 09:20 a.m.
[Continuous trading period]
Also called regular trading period: HKT 9:30 – 12:00 a.m. and HKT 13:00 – 16:00 p.m.
2. Minimum trading unit and stock price rules for HK stocks
The minimum trading unit for HK stocks is “1 lot”, which may equal to 100 shares, 500 shares, 1,000 shares, 2,000 shares, etc., depending on stock price. For example, 1 lot equals to 100 shares for Tencent Holdings Ltd and 500 shares for BYD AUTO. Where share holdings are less than 1 lot, it is called “odd lot”. For instance, in Tencent Holdings Ltd, 1 lot equals to 100 shares, so if one holds 150 shares of Tencent, then 50 shares thereof become odd lot. Odd lot usually occurs when a company carries out bonus issue or rights issue.
Correspondence between stock price and minimum bid size:
|
Stock price |
Minimum Bid Size
|
Stock price range |
Minimum Bid Size
|
|
0.01–0.25 |
0.001 |
0.25–0.5 |
0.005 |
|
0.5–10 |
0.01 |
10–20 |
0.02 |
|
20–100 |
0.05 |
100–200 |
0.1 |
|
200–500 |
0.2 |
500–1,000 |
0.5 |
|
1,000–2,000 |
1 |
2,000–5,000 |
2 |
|
5,000–9,995 |
5 |
|
|
3. Fluctuation of HK stock price
Like US stock market, HK stock market is not subject to 10% limit up/down system.
4. Intraday trading of HK stocks
Day trading is allowed. HK stocks are subject to the T+0 trading system, that is, stocks can be brought and sold on the same day. There is unlimited T+0 trading frequency both for HK stocks and US stocks.
5. Margin Financing of HK stocks
It is supported. Any account with total assets over USD2,000 can conduct financing for HK stocks.
6. Securities margin trading (short-selling) of HK stocks
Yes . Most stocks with better liquidity support short-selling transactions.
7. HK Stocks-Order Types
Supported Types:At-auction orders, at-auction limit orders, market orders, limit orders, stop-loss orders, and stop-loss limit orders
Below we will introduce at-auction orders and at-auction limit orders. For other order types, please refer to the US stock trading help page:Order Type.
At-auction order:
place & modify orders at HKT 9:00-9:20
At HKT 9:20, HKEX will handle at-auction orders uniformly
At HKT 9:30, unfilled orders will be cancelled automatically.
At-auction limit orders:
HKT 9:00-9:15 place & modify orders
(Orders placed at HKT 9:15-9:20 will be cancelled automatically at 9:30)
HKT 9:20 HKEX will uniformly process auction orders
HKT 9:30 unfilled orders continue to be listed on the exchange
Note: At-auction limit orders are placed during the auction period and automatically extended to the continuous trading period. Some orders will be automatically cancelled after modification, depending on whether the order is accepted by the HKEX during the auction period.
8. HK stock settlement arrangement
HK stocks trading is subject to the T+2 delivery system, that is, for shares traded today, the securities company and clearing house will carry out the settlement and delivery of funds and shares on the second workday after clearing.
9. HK stock derivatives trading
Prime accounts of Tiger Brokers do not support warrant, callable bull/bear contract and other derivatives trading temporarily.
10. Introduction to corporate action
Actions of listed company refer to events that are published by the issuer of listed securities and will directly or indirectly influence changes of such listed securities, which will influence interests of stockholders of such listed securities.
Common corporate actions include cash dividend, bonus issue, rights issue, privatization, stock split / merger, etc.
1) Cash dividend
Cash Dividend refers to dividend and bonus payment made in the form of cash. It is the most common and basic dividend form. Cash paid to shareholders by a company are often provided by current earnings or accumulated profits of the company.
2) Bonus issue
Bonus Issue refers to dividend and bonus payment made in the form of security. For the listed companies, it is a method of Capitalization Issue, which means further allocation of securities to existing shareholders as per their respective security holding ratio.
3) Rights issue
Rights Issue, a fundraising way for the listed companies, refers to existing security holders provide offers to subscribe securities as per their respective current security holding ratio. When a company announces rights issue, its existing shareholders will receive the rights. Any shareholder who objects to rights issue may waive the rights by selling the rights on the market.
4) Privatization
Privatization is often proposed by the controlling shareholder in order to buy all shares of minority shareholder in the form of cash or security with cash option. The listed companies may complete privatization through “acquisition” or “scheme of arrangement”. Upon completion of privatization, the listed companies can apply to stock exchanges for cancelation of their respective listing status.
5) Stock split, merger and conversion
Stock split, merger and conversion mean exchanging the existing listed securities for new securities. Among them, stock split refers to splitting the existing eligible securities into “new” shares with lower par value; stock merger refers to merging several existing eligible securities into a “new” share with higher par value.
6) Stock warrant conversion
A stock warrant holder has the right to subscribe a specified quantity of securities at a specified “subscription” price or exercise the stock warrant at a specified “exercise” price and receive the corresponding proceeds during the exercise period or on a specified exercise date. Stock warrant conversion refers to exchanging the stock warrant for a specified quantity of securities at a specified “subscription” price.
10. Statement of order handling using price capping
In accordance with regulatory obligations that the brokers are expected to have certain controls in place to prevent orders with market disruption risks (such as sudden price fluctuations) from being submitted to the market, the executing brokers may set price caps on buy orders and price floors on sell orders.
Please note that while such price limits are set to maximize order execution while minimizing price risk, there exists a possibility that a trade will be delayed or may not take place.