| Custodian account (Started by letter “P”) | Margin Account (Started by letter “M”) | |
|---|---|---|
| Features | This account holds cash and stock and mainly traded by cash. It is available to trade Hong Kong stocks (including stocks, warrants, CBBC and ETF) andand A Share Express / Shenzhen Stock Connect Securities. The settlement amounts will directly debited from this account; or the amounts will be credited to this account when selling stocks. This account provides electronic trading service, but in condition that the account has sufficient fund (buying instruction) or stock quantity (selling instruction) |
This account is mainly traded by buying power. It is available to trade Hong Kong stocks (including stocks, warrants, CBBC and ETF) and and A Share Express / Shenzhen Stock Connect Securities. (Please refer to Stock Margin Table for detail.) Full settlement amount may not be required depending on client’s existing portfolio. Each account is given by specific credit limit. The loanable amount is depending on marginable value, but not exceeds the credit limit. This account provides electronic trading service, but in condition that the account has sufficient buying power (buying instruction) or stock quantity (selling instruction) |
| Buying Power | Based on the sum of the balance in the account and the additional online purchasing power (if applied) | Based on ledger balance plus the marginable value. But the total buying power cannot be exceeded credit limit |
| Requirement of the first buying stock | Deposit sufficient fund for relevant stock | Deposit sufficient fund or marginable physical shares for that marginable value of stock |
| Online transaction service | Only sufficient purchasing power (buy instruction) or securities holding quantity (sell instruction) must be deposited in the account before online trading | The account must have sufficient purchasing power (buy instruction) or securities holding quantity (sell instruction) in the account to conduct online transactions |
| Saving Interest | Positive available balance exceeding a certain amount will generate saving interest per day, which the saving interest rate is referred by general Hong Kong bank and may be adjusted without prior notice | Positive available balance exceeding a certain amount will generate saving interest per day, which the saving interest rate is referred by general Hong Kong bank and may be adjusted without prior notice |
| Overdue Interest | Negative available balance will generate overdue interest per day. The annual interest rate is referred to Chong Hing Bank Prime Rate plus 5% (i.e. P+5%) | Negative available balance will generate overdue interest per day. The annual interest rate is referred to Chong Hing Bank Prime Rate plus 2.5% (i.e. P+2.5%) if overdue amount within the marginable value; or Chong Hing Bank Prime Rate plus 3.5% (i.e. P+3.5%) if overdue amount beyond the marginable value |
| Amount for calling margin | Negative available balance | The different amount between loanable value and the lower part of marginable value or credit limit |
| General Risk |
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