When can cross-market trading be used?
Scenario 1: Owning assets in Hong Kong stocks and being able to purchase the US and A shares directly.
Scenario 2: Owning assets in U.S. stocks and being able to purchase Hong Kong and A-share directly.
Scenario 3: Owning RMB assets (offshore), you can buy Hong Kong and US stocks directly.
2.1 I own 200 thousand HKD of Tencent shares, and my Hong Kong stock account has 100 thousand HKD of purchasing power, after the opening of cross-market trading, I can directly use this 200 thousand HKD buying power corresponds to about 12 thousand USD buying power (1 USD ≈ 7.8 HKD) to open a position in the US stock market.
2.2 I own 100 thousand USD of BABAshares and have 50 thousand of buying power in my US stock account, after opening cross-market trading, I can directly use this100 thousand USD of buying power to open a position in the Hong Kong stock market, which corresponds to about 380 thousand of purchasing power in Hong Kong dollars (1 USD ≈ 7.8 HKD).
In addition, the IPO purchasing power is the sum of available cash under the Hong Kong stocks, US stocks, and A-shares accounts, excluding the market value of stock mortgages.