As the transactions of Hong Kong Stock Connect are quoted in Hong Kong dollars and settled in RMB, and domestic brokers exercise front-end control over investors, investors must pay the relevant funds in full in advance, so the reference exchange rate needs to be set in advance in the business of Hong Kong Stock Connect, which is mainly used for pre-freezing funds at the front end of brokerage transactions, not for actual settlement. In order to avoid the settlement risk brought by the exchange rate fluctuation on the day, its value range covers the largest one-day fluctuation range in history. At present, its value is 3% of the real-time median price of Hong Kong dollar against RMB in offshore market at the end of T-/KLOC-0.

The actual settlement exchange rate is determined according to the actual net exchange rate at the end of the day and the principle of full distribution of buying and selling, and the settlement exchange rate is generally better than the above reference exchange rate. After the liquidation at the end of the day, the actual amount of RMB that investors need to pay to buy Hong Kong stocks at the selling settlement exchange rate will generally be less than the amount calculated by the securities company at the intra-day selling reference price. On the contrary, after one day's liquidation, the amount of RMB that investors can actually get according to the exchange rate of buying settlement will generally be more than the amount calculated by securities companies according to the reference price of buying that day. Of course, due to the need of risk management, some securities companies may add or subtract a certain proportion on the basis of reference quotation to control customers' funds. Investors should consult the designated trading securities company for details in advance.

Remind investors that the settlement exchange rate may be worse than the reference exchange rate when the offshore RMB market fluctuates greatly in extreme cases. Therefore, investors need to pay attention to the offshore RMB market, check the balance of the capital account in time and prevent the capital account from being overdrawn.

Tips:

1. The above information is for reference only, and no suggestions are made;

2. There are risks in entering the market, so investment needs to be cautious.

Reply time: 202 1-06-28. Please refer to the latest business changes announced by Ping An Bank in official website.

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