The DTDC model allows offering and listing of two tranches of shares by the same issuer in different trading currencies (i.e. HKD and CNY). Both of the tranches, under the same class, will be traded on the Hong Kong Stock Exchange in HKD and RMB counters respectively. A stockholder who holds shares in one counter can transfer the shares to another counter.
Under the DTDC mechanism, how do I distinguish between the two counters of shares of the same company? Is there any difference between their stock codes?
The HKD counter shares use a 5-digit stock code starting with “0”. The RMB counter shares use a 5-digit stock code starting with "8" and end with "-R". The last four digits of the two stock codes will be the same.
If I am holding HKD counter shares, when can I sell them in the RMB counter?
You can sell them in the RMB counter at any time (vice versa), without having to wait for days to transfer the shares to the other counter beforehand.
Can I buy HKD counter shares and then sell them in the RMB counter immediately?
Yes, after you have purchased the HKD counter shares, you can sell them in the RMB counter immediately. (vice versa)
Can I buy RMB-traded shares using HKD funds?
No. You have to do an FX transfer to your Renminbi savings account first before purchasing RMB shares.
