For investors, how to determine the RMB to be paid or charged when buying and selling stocks is a concern. Here we need to pay attention to the difference between the reference exchange rate and the settlement exchange rate.
The reference exchange rate refers to the exchange rate provided by China Clearing Bank and announced to the market through the website of Shanghai Stock Exchange before the opening of the trading day of Hong Kong Stock Connect. The reference exchange rate includes two items: the Hong Kong dollar buying reference price and the Hong Kong dollar selling reference price. Domestic securities companies can use the reference exchange rate to control investors' funds. That is, when investors buy Hong Kong stocks, the securities company calculates the RMB funds that investors need to pay at the selling price of Hong Kong dollars; When investors sell Hong Kong stocks, the securities company calculates the RMB funds available to investors at the reference price of Hong Kong dollars.
The settlement exchange rate means that after the close of the day, the settlement in China is based on the net settlement amount (unilateral, net receivable or net payable) of the whole market of Hong Kong stocks, and after the foreign exchange is exchanged between Hong Kong and foreign exchange banks, the exchange cost is evenly distributed to the actual applicable exchange rate calculated according to all trading transactions of the day. The exchange rate includes the buying exchange rate and the selling exchange rate.
As can be seen from the above, the reference exchange rate is not equal to the settlement exchange rate. Due to the arrangement of net exchange and the principle of cost allocation, the settlement exchange rate is generally superior to 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 according to the selling settlement exchange rate will generally be less than the amount calculated by securities companies according to 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.
Before and after the opening of daily trading, China Clearing provided the daily trading reference exchange rate and settlement exchange rate respectively, and released them through official website of Shanghai Stock Exchange.
Remind investors that the exchange rate fluctuation between the trading day and the settlement date of the Hong Kong Stock Connect will not affect investors' participation in the fund settlement of the Hong Kong Stock Connect transaction, and investors need not bear the risk of exchange rate fluctuation between the trading day and the settlement date. In extreme cases, when the offshore RMB market fluctuates greatly, the settlement exchange rate may be worse than the reference exchange rate. Investors should pay close attention to the offshore RMB market in a timely manner, inquire about the balance of the capital account, and prevent the capital account from being overdrawn. In addition, the above arrangement is only applicable to the liquidation of transaction settlement funds, and corporate settlement funds (such as dividends) generally adopt the transaction-by-transaction full exchange arrangement.