The differences between domestic residents and overseas (non-resident) investors in B shares are as follows: When applying for opening a securities account, domestic residents shall go to the place with the qualification to open an account for B shares by presenting their personal valid identity certificates and bank receipts of more than $1000;
On the other hand, overseas (non-resident) investors only need to present their valid personal certificates (foreign passport, foreign identity card, Chinese passport + permanent residence certificate). If they have not obtained the right of permanent residence abroad, they shall be regarded as domestic residents.
When an investor opens a foreign exchange fund account (i.e., a margin account for B shares) at a securities broker’s office with the B-share securities account, domestic residents shall deposit the cash or cash deposits transferred from the bank into the margin account for B shares;
While overseas (non-resident) shall deposit the foreign currency remitted from overseas or the legal cash deposit of domestic commercial banks into the B-share fund account.
When withdrawing the margin, domestic residents shall transfer the funds in the margin account of B-shares back to domestic commercial banks and then withdraw them from the bank. The funds transferred back to the bank shall be regarded as foreign currency cash and shall not be paid abroad.
Overseas (non-residents) may remit overseas payments or deposit in their legal foreign exchange accounts in the Mainland.
When investors of B-shares in Shanghai Stock market obtain B-share accounts, their designated transactions have been completed at the same time. As the only trading point for buying and selling securities, investors can only carry out trading, clearing and settlement in the securities business department designated for trading.
If YOU NEED TO change the designated transaction, you must first go to the securities business department that has already designated the transaction to cancel the designation, and then go to other securities business department to re-handle the designated transaction.
Unlike domestic residents, foreign investors can buy and sell Shanghai B shares anywhere.
That is, B shares bought by the same securities account in any different securities business can also be sold in any securities business.
The balance of shares shall be reconciled monthly by the clearing member.
However, no matter the B shares purchased in any business department, the cash bonus paid during this period is still at the designated clearing member, and the relevant inquiries, loss reporting, claim of rights and interests, freezing, unfreezing and non-transaction transfer shall be handled at the designated clearing member.