Investments

When should I start planning for the future?

The sooner you start, the better. The example below shows the difference in accumulative savings between Mr. Early and Mr. Late, who start saving at different times.

Mr. Early saves for 10 years and then stops. Mr. Late starts 10 years later and also saves for 10 years. But Mr. Early gets 63% more than Mr. Late (based upon 5% annual growth, not taking into account annual inflation).

What types of financial tools can I invest my money in?

You can choose from a range of different financial tools:

• HKD, RMB and foreign currency savings and time deposits
  
• Investments products
• Insurance products

Traditionally, savings or time deposits are the safest place to put your money, but often offer lower rates of interest. Investment products usually offer potentially higher returns but with a greater risk.

How can I set up an investment account?

You can open an investment account online in most circumstances. You must maintain a personal banking account with HSBC before s/he can open an investment account online.

Alternatively you can also open an investment account at our branches. If you wish to open a joint account, you can only do so at our branches.

Is there any fee to be charged?

Opening an investment account does not incur any fees. However, there may be other account fees applicable depending on the nature of the account and the products held in the account. Besides, there may be transaction fees involved when you buy or sell investment products. Please consult our staff should you have any queries.

What is Financial Product and what is not?

Financial Product is a term defined in the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission. The products currently made available by our Retail Banking and Wealth Management business to personal customers are classified as follows:

How can I benefit from bond investments?

• Regular income
  Bonds deliver stable and predictable coupons as streams of income. Bonds also offer predictable repayment of principal at maturity.
• Yield Enhancement
  Bond yields are usually higher than time deposit rates with similar maturity.
• Capital Gain Potential
  You can also benefit from capital appreciation if bond prices move up.
• Risk Diversification Tool
  Bonds exhibit low correlation to other asset classes, hence the inclusion of bonds can bring relative stability to a portfolio.

What types of bond are available through HSBC?

HSBC offers you a full range of investment grade or equivalent bonds including RMB dimsum bonds, Government Bonds and Corporate Bonds with wide ranges of major currencies selections and tenors ranging from 1 to 30 years. Investment amount can be as low as HKD10,000.

Bonds from HSBC can be categorised by:

• types of issuers - corporate bonds, supranational bonds and government/quasi-government bonds
• coupon - fixed rate bonds, floating rate bonds and zero-coupon bonds
• credit quality - investment grade bonds
• currency - HKD, USD, AUD, CAD, CNY, EUR, GBP, NZD and SGD

Do I need a large sum of money to invest in bonds?

HSBC lets you invest in a wide range of bonds with a minimum investment amount of HK$10,000⁺⁺.

⁺⁺Please note the minimum and incremental investment amount varies from bond to bond. Please consult us for more details.

How can I trade bonds with HSBC?

You can now trade bonds via HSBC Online Banking or the HSBC HK Mobile Banking app. Our one-stop online platform offers bond IPO subscription and secondary market trading services.

If you already have an HSBC Investment Services/Securities account, you can simply log on and execute your bond order with us. We also offer bond trading services through our branches and investment phonebanking service. To open an Investment Services/Securities account, simply apply through HSBC HK Mobile Banking app any time or visit any HSBC branch in Hong Kong.

Do I have to hold bonds until maturity?

HSBC will repurchase the bonds purchased through us based on the prevailing market price under normal circumstances thus you may not hold the bonds until maturity. Customer's selling price may differ from the original buying price due to changes in market condition. You could lose part or all of your investment if you choose to sell the bonds prior to maturity.

What if I need cash but the current selling price for my bonds is not favourable?

HSBC can offer you a loan at preferential rates of up to 70% the value of your bonds. Please consult us for details.

How can I collect my interest payments?

All bonds purchased through HSBC are under our custody and nominee service. So just sit back and we'll ensure all interest earned is credited to your settlement account once the payment is received from the relevant custodian on or after the coupon payment date.

What do Moody's and Standard and Poor's credit ratings represent?

They refer to the ability of the bond issuer to repay the value and interest to bondholders. Moody's and Standard and Poor's are the best known international credit rating agencies. Ratings are assigned based on the bond issuer's financial strength and past record of debt repayment. In general, the higher the credit rating, the lower the risk of default and the interest offered.

What are the service charges for trading bonds?

What are the risks in Bonds?

Bonds involves the following risks (including but not limited to): 

Interest Rate Risks 

• Refers to the potential loss in the bond value as a result of a rise in term interest rate. However, there is no impact if planning to hold bond to maturity.
• Causes of term interest rate increase can be central bank policy hike to manage inflation, increase in issuance size in a particular tenor and reduced demand in that tenor.
• The longer the maturity of a bond, the higher the interest rate risk.
• Bond investors can consider mitigating interest rate risk by investing in floating rate bonds/ notes.

Credit Risk 

• Refers to the potential loss in the bond value as a result of either a downgrade of the issuer's credit rating or the market's perception of the issuer's credit worthiness and its ability to meet its financial obligations. However, there is no impact if planning to hold a bond to maturity.
• Bond investors can consider mitigating credit risk by investing in bonds of higher risk rating.

Default Risk

• Refers to the potential total loss in the bond value as a result of the issuer going bankrupt.
• Bond investors can consider mitigating credit risk by investing in bonds of higher risk rating.

Liquidity Risk 

• Refers to investors may have difficulty finding a buyer when they want to sell and may be forced to sell at a significant discount to market value.
• Liquidity risk is greater for thinly traded securities such as lower-rated bonds, bonds that were part of a small issue, bonds that have recently had their credit rating downgraded or bonds sold by an infrequent issuer. Bonds are generally the most liquid during the period right after issuance when the typical bond has the highest trading volume.
• It is often reflected in wider spread between the bid and offer price of the bond.

Will the bank provide me with regular statements of my Bond investment?

Yes, HSBC will provide contract note to you in every Bond transaction and you can also find your Bond investment record in the monthly consolidated statement (if applicable).

What is the maximum allocation amount per investor?

A maximum allocation amount of HK$1 million per investor is set on this Retail Infrastructure Bonds issuance. Hence, you will not be allotted in full if your application amount exceeds HK$1 million. Also, please note that you may be allocated with amount less than such maximum allocation amount.

How can I sell the allotted HKSAR Government iBond/Retail Green Bonds/ Retail Infrastructure Bonds from IPO via HSBC for Over-the-Counter (OTC) trading?

You can sell the allotted iBond/Retail Green Bonds/ Retail Infrastructure Bonds instantly during trading hours through our OTC trading service, Online Bond Trading Services (click "Investments" on internet banking, then "Bonds/Certificates of Deposit", click "My portfolio"). You can also call our phonebanking or visit any branches for selling of iBond/Retail Green Bonds/ Retail Infrastructure Bonds through our OTC Bond Trading Service. No extra fees and charges applied.

If I want to sell the allotted iBond/Retail Green Bonds/ Retail Infrastructure Bonds via Hong Kong Exchanges and Clearing Limited (HKEx), how can I do it?

You need to transfer the iBond/Retail Green Bonds/ Retail Infrastructure Bonds to Central Clearing and Settlement System(CCASS) by filling in a transfer request form at branches. It normally takes 5 business days (if request is received before noon) to complete the transfer before you can sell through HKEx. Please note the transfer fee is HKD100. (Such fee also applies for transfer from Central Clearing and Settlement System (CCASS) to Central Moneymarkets Unit (CMU).) The transfer fee is waived for any Retail Green Bonds holding transfer between Central Moneymarkets Unit (CMU) and Central Clearing and Settlement System (CCASS) from 17 December 2024 to 31 January 2025. Selling of the iBond /Retail Green Bonds/ Retail Infrastructure Bonds via the stock trading platform is subject to fees and charges of stock trading services including brokerage fee, deposit charge (purchase order only), Securities and Futures Commission transaction levy, Financial Reporting Council transaction levy, investor compensation levy (temporarily suspended by SFC at the date of issue circular) and Hong Kong Exchanges and Clearing Limited trading fee (details as illustrated below).

What is the difference between selling iBond/Retail Green Bonds/ Retail Infrastructure Bonds via the Bank's Online Bond Trading Service (i.e. OTC) and HKEx?

The major differences are the iBond/Retail Green Bonds/ Retail Infrastructure Bonds transfer leadtime and the costs involved which are summarized below:

For details of fees/charges/levy, please refer to the Local Securities Service Charges in our website

How can I transfer the allotted iBond/Retail Green Bonds/ Retail Infrastructure Bonds to Central Clearing and Settlement System(CCASS) for trading at Stock Exchange?

You can visit any branch and fill in a transfer request form. It normally takes 5 business days to complete the transfer if request is received by the bank before noon. A service fee of HK$ 100 will be charged. (Such fee also applies for transfer from Central Clearing and Settlement System (CCASS) to Central Moneymarkets Unit (CMU).) The transfer fee is waived for any Retail Infrastructure Bonds holding transfer between Central Moneymarkets Unit (CMU) and Central Clearing and Settlement System (CCASS) from 17 December 2024 to 31 January 2025. Upon completion of transfer, the iBond/Retail Green Bonds/ Retail Infrastructure Bonds holding will be held under the respective stock code for trading via HKEx. 

Is there a price difference between the iBond/Retail Green Bonds/ Retail Infrastructure Bonds offered by the Bank's Bond Trading Services (or Over-The-Counter) and HKEx?

You can trade iBond/Retail Green Bonds/ Retail Infrastructure Bonds through the following markets:

1. Stock Exchange of Hong Kong
2. OTC - over-the-counter, trading outside the Stock Exchange

The price in the 2 markets may be different and there is chance that the price on HKEx is higher than OTC or vice versa. This is due to the different demand and supply in respective markets and that the price is driven by different market pool. The price gap also reflects the associated fee/levy when trading on HKEx.

You should consider to trade in which market by considering the leadtime and all the associated costs (please refer to the above) besides the price.

What is the difference between iBond and Retail Infrastructure Bonds which also has the coupon rate linked to inflation rate?

Retail Infrastructure Bonds offers similar features to iBond, including interest rate which is linked to the inflation rate. The proceeds raised under Retail infrastructure bonds will be credited to the Capital Works Reserve Fund (“CWRF”) to provide funding for Government infrastructure projects. The Infrastructure Bond Programme (“IB Programme”) covers projects under the Government’s capital works programme of the CWRF (except for those that have been or are expected to be included in the Government Sustainable Bond Programme ("GSB Programme")), including projects under major infrastructure initiatives. The Hong Kong Monetary Authority assists the Government in implementing bond issuance under the IB Programme.

Is there additional risk for Retail Bonds as compared to that for iBond?

As compared to iBond, investors need to note that the retail bonds may not necessarily be a suitable investment if you seek exposure to specific types of infrastructure projects. While the proceeds of the retail bonds will be used to fund one or more of the “Eligible Projects” as defined in the Infrastructure Bond Framework, payments under the retail bonds are not linked to the performance of the relevant Eligible Project(s). The retail bonds are not secured by income from the Eligible Project(s) and you do not have any rights to the Eligible Project(s). HKSAR Government has the sole and absolute discretion to determine the allocation of the proceeds of retail bonds to the Eligible Project(s), which may be changed and/or updated from time to time.

Why is my allotted Silver Bond holding in HSBC settled in CMU?

According to the Silver Bond Issue Circular, if a customer applied for Silver Bond via a placing Bank, the allotted Silver Bond will be held through the Central Moneymarkets Units (CMU), a debt securities custodian.

Who is eligible to apply for Silver Bond IPO?

All HSBC personal customers can apply for Silver Bond IPO, provided that the customer (or the principal account holder for joint account):

• holds a valid HKID card; AND
• was born on or before 31 December 1965; AND
• maintains Integrated Investment Services Account or Securities Account with HKD cash account.

Can I sell the allotted HKSAR Government Silver Bond?

Silver Bond will not be listed on any stock exchange.  If you wish to sell the allotted Silver Bond before maturity, you may submit an early redemption request via Personal Internet Banking, Mobile Banking, Branch or Phonebanking.  Redemption will take place on the third business day following receipt of early redemption instruction.

What is the maximum allocation amount per investor?

A maximum allocation amount of HK$1 million per investor is set on this Silver Bond issuance. Hence, you will not be allotted in full if your application amount exceeds HK$1 million. Also, please note that you may be allocated with amount less than such maximum allocation amount.

Can I apply IPO loan facility?

As there will be no secondary market for Silver Bond, no IPO loan will be offered for the Silver Bond issuance.

How can I place an order?

Simply call (852) 2233 3322. Speak to us after keying in your account number and PIN.

What information do I need to provide to place an order?

The basic information required is the stock name, stock market, order size, your price limit and settlement currency. It is worth paying attention to the stock name. Using the full stock name in your order will ensure no misunderstanding on which stock to trade, as some stocks may have similar names. If in doubt, we will be happy to assist you based on your description of the abbreviated name, the nature of business and the latest closing price.

What order types are offered?

We accept limit price orders. Orders placed will be valid for the same day until the respective market closes. You can place orders with us anytime. Orders received after the trading hours of the respective market will be processed on the next trading day.

What are the trading hours of the five overseas markets?

The following table shows the Hong Kong time for trading hours in each of the overseas markets:

When will my account be debited for stock purchase?

Upon order placement (trade day), the purchase amount will be held on HKD/USD account. The actual debit of the money will take place on the settlement day (e.g. T+2, except Canada which is T+1 effective from 27 May 2024). Money held between the placement day and the settlement day will continue to earn interest in your account. In case the settlement day is a Hong Kong public holiday, the actual debit of the money will take place on the last working day before the settlement day. 
If you choose to settle in USD and need to transfer sufficient funds into your USD settlement account, please do so before 7 p.m. Hong Kong time. We will be pleased to help you.

How soon can I sell my stocks, and when will I receive the money from selling stocks?

Stocks can be sold once settlement is completed (i.e., T+2, except Canada which is T+1 effective from 27 May 2024). The sales proceeds will be credited to your account two days after the sales execution (i.e., T+2, except Canada which is T+1 effective from 27 May 2024). 

How can I check the status of my Securities trading order?

• HSBC Internet Banking
  You can check your order status and execution result by clicking 'Checking order status' under 'My Investment' section. We will also notify you the execution result via email at HSBC Internet Banking.
• Stock Express
  You can check your order status under the 'Order Status' section. All securities orders with pending dealing status will be displayed first by default, but you can sort the sequence of display by stock code, transaction type and transaction date at your choice.

Alternatively, you may also call our investment phonebanking services hotline or log on to HSBC Internet Banking to check your order status and execution result or sign up for our free eAlerts investment order confirmation service at HSBC Internet Banking to receive your stock order execution result via SMS. For more details about eAlerts, please go to 'Investment eAlerts' section at HSBC Internet Banking.

Can I trade my overseas securities during Hong Kong public holidays?

Trading will be available if overseas stock markets are open. We will be there to take your orders and answer your queries during Hong Kong public holidays.

Can I buy Nasdaq-Amex Pilot programs securities ('PP Securities') listed on Hong Kong Stock Exchange?

Effective from 1 Jan 2019, all buy orders for PP Securities listed on Hong Kong Stock Exchange will not be accepted due to insufficient liquidity in the Hong Kong market.

How much does Hong Kong Stocks Charge?

Hong Kong Stocks Service Charges¹

The RMB charges shown are applicable to RMB denominated stock and nominee service & corporate actions involving RMB.

¹ Applicable to HSBC Premier, HSBC One and Personal Integrated Account customers and general securities account customers with account number ended with '381'.

² Brokerage fee is calculated based on the total transaction amount of each order every trading day.

³ Applicable to HSBC Premier customers only.

⁴ Stamp Duty, Transaction levies and HKEx Trading Fee, will be collected in RMB or HKD equivalent (according to official exchange rate ) for RMB denominated stock as determined by the bank, The bank may adopt some rounding measures in calculation of Transaction levies, Stamp Duty and HKEx Trading Fee, but will ensure that this never results in our customers paying more than the stated levy. The bank will also ensure that the correct levies will be paid to the relevant regulatory authorities.

⁵ If there is more than one purchase transaction executed on a trading day (T) and/or the next following trading day (T+1), the sale transaction will first be matched with all purchase transactions executed on T based on their size, starting from the one with the largest quantity of purchased shares. After that, any unmatched sale shares will be matched with purchase transactions executed on T+1 based on their size, starting from the one with the largest quantity of purchased shares. Remaining shares of matched purchase transactions (if any) and/or unmatched purchase transactions (if any) are still subject to the deposit transaction charge with a minimum of HKD30/RMB30 for each purchase transaction.

⁶ The charge applied is according to the transaction currency of the corporate action. For transaction currency other than HKD or RMB, HKD charge or equivalent at the Bank's prevailing exchange rate will be applied.

⁷ Related charges of the above Hong Kong stocks services will also apply, where applicable.

For non-HKD payment such as cash dividend, when respective currency account is not available/provided for the corporate action at the time of the payment, payment will be paid in Hong Kong Dollar equivalent at the Bank's prevailing exchange rate to customer's default HKD account after charge deduction.

How much does Local Securities Online Market Information Service Charge?

Local Securities Online Market Information Service and Charges

For market news, you may go to Market Information. For real-time stock quotes on local stock markets and more comprehensive market information, please log on to HSBC Personal Internet Banking which offers Market Live, our fee-based service for stock traders.

There may be other fees, charges, levies, tax and interest that apply to certain securities or particular security trading services provided by the Bank that are introduced and/or charged by the relevant service providers, government or regulatory bodies. The Customer is fully responsible for such fees, charges, levies, tax and interest. Please make enquiry with the Bank for details. All charges are available upon request and are subject to revision without notice.

The Bank does not provide investment advice. Investment involves risk. The price of stocks may move up or down. Losses may be incurred as well as profits made as a result of buying and selling stocks. Full details of the terms and conditions of the above services are available on request.

How do I check my buying power for stock trading?

You can check your 'Account buying power' on HSBC Online Banking, the HSBC HK Easy Invest App and the HSBC HK Mobile Banking app. When you search for a stock, select the 'Buy' button, and see your 'Account buying power' on the buy order page after a settlement account is selected.

How do I submit Corporate Action instruction?

You may submit your Corporate Action instruction by Personal Internet Banking or return reply slip to the Bank.

What risks are involved?

1. Risk of Securities Trading
   
   The prices of securities fluctuate, sometimes dramatically. The price of a security may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling securities.
   
2. Risk of Trading Futures and Options
   
   The risk of loss in trading futures contracts or options is substantial. In some circumstances, you may sustain losses in excess of your initial margin funds. Placing contingent orders, such as "stop-loss" or "stop-limit" orders, will not necessarily avoid loss. Market conditions may make it impossible to execute such orders. You may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, your position may be liquidated. You will remain liable for any resulting deficit in your account. You should therefore study and understand futures contracts and options before you trade and carefully consider whether such trading is suitable in the light of your own financial position and investment objectives. If you trade options you should inform yourself of exercise and expiration procedures and your rights and obligations upon exercise or expiry.
   
3. Risk of Trading Growth Enterprise Market Stocks
   
   Growth Enterprise Market (GEM) stocks involve a high investment risk. In particular, companies may list on GEM with neither a track record of profitability nor any obligation to forecast future profitability. GEM stocks may be very volatile and illiquid.
   
   You should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors.
   
   Current information on GEM stocks may only be found on the internet website operated by The Stock Exchange of Hong Kong Limited. GEM Companies are usually not required to issue paid announcements in gazetted newspapers.
   
   You should seek independent professional advice if you are uncertain of or have not understood any aspect of this risk disclosure statement or the nature and risks involved in trading of GEM stocks.
   
4. Risks of Client Assets Received or held outside Hong Kong
   
   Client assets received or held by the licensed or registered person outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the Securities and Futures Ordinance (Cap.571) and the rules made thereunder.
   Consequently, such client assets may not enjoy the same protection as that conferred on client assets received or held in Hong Kong.
   
5. Risk of Providing an Authority to repledge your Securities Collateral etc
   
   There is risk if you provide the licensed or registered person with an authority that allows it to apply your securities or securities collateral pursuant to a securities borrowing and lending agreement, repledge your securities collateral for financial accommodation or deposit your securities collateral as collateral for the discharge and satisfaction of its settlement obligations and liabilities.
   
   If your securities or securities collateral are received or held by the licensed or registered person in Hong Kong, the above arrangement is allowed only if you consent in writing. Moreover, unless you are a professional investor, your authority must specify the period for which it is current and be limited to not more than 12 months. If you are a professional investor, these restrictions do not apply.
   
   Additionally, your authority may be deemed to be renewed (i.e. without your written consent) if the licensed or registered person issues you a reminder at least 14 days prior to the expiry of the authority, and you do not object to such deemed renewal before the expiry date of your then existing authority.
   
   You are not required by any law to sign these authorities. But an authority may be required by licensed or registered persons, for example, to facilitate margin lending to you or to allow your securities or securities collateral to be lent to or deposited as collateral with third parties. The licensed or registered person should explain to you the purposes for which one of these authorities is to be used.
   
   If you sign one of these authorities and your securities or securities collateral are lent to or deposited with third parties, those third parties will have a lien or charge on your securities or securities collateral. Although the licensed or registered person is responsible to you for securities or securities collateral lent or deposited under your authority, a default by it could result in the loss of your securities or securities collateral.
   
   A cash account not involving securities borrowing and lending is available from most licensed or registered persons. If you do not require margin facilities or do not wish your securities or securities collateral to be lent or pledged, do not sign the above authorities and ask to open this type of cash account.
   
6. Risk of providing an authority to hold mail or to direct mail to third parties
   
   If you provide the licensed or registered person with an authority to hold mail or to direct mail to third parties, it is important for you to promptly collect in person all contract notes and statements of your account and review them in detail to ensure that any anomalies or mistakes can be detected in a timely fashion.
   
7. Risk of Margin Trading
   
   The risk of loss in financing a transaction by deposit of collateral is significant. You may sustain losses in excess of your cash and any other assets deposited as collateral with the licensed or registered person. Market conditions may make it impossible to execute contingent orders, such as "stop-loss" or "stop-limit" orders. You may be called upon at short notice to make additional margin deposits or interest payments. If the required margin deposits or interest payments are not made within the prescribed time, your collateral may be liquidated without your consent. Moreover, you will remain liable for any resulting deficit in your account and interest charged on your account. You should therefore carefully consider whether such a financing arrangement is suitable in light of your own financial position and investment objectives.
   
8. Risk of Trading Nasdaq-Amex Securities at The Stock Exchange of Hong Kong Limited
   
   The securities under the Nasdaq-Amex Pilot Program ("PP") are aimed at sophisticated investors. You should consult the licensed or registered person and become familiarised with the PP before trading in the PP securities. You should be aware that the PP securities are not regulated as a primary or secondary listing on the Main Board or the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited.
   
9. Additional Risk Disclosure for Futures and Options Trading
   
   This brief statement does not disclose all of the risks and other significant aspects of trading in futures and options. In light of the risks, you should undertake such transactions only if you understand the nature of the contracts (and contractual relationships) into which you are entering and the extent of your exposure to risk. Trading in futures and options is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances.
   
   9.1 Futures
   
   (i) Effect of "Leverage" or "Gearing"
   Transactions in futures carry a high degree of risk. The amount of initial margin is small relative to the value of the futures contract so that transactions are "leveraged" or "geared". A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited with the firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit.
   
   (ii) Risk-reducing orders or strategies
   The placing of certain orders (e.g. "stop-loss" orders, or "stop-limit" orders) which are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. Strategies using combinations of positions, such as "spread" and "straddle" positions may be as risky as taking simple "long" or "short" positions.
   
   9.2 Options
   
   (i) Variable degree of risk
   
   Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise themselves with the type of option (i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs.
   
   The purchaser of options may offset or exercise the options or allow the options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased options expire worthless, you will suffer a total loss of your investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote.
   
   Selling ("writing" or "granting") an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to maintain the position if the market moves unfavourably.
   
   The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futures contract, the seller will acquire a position in a futures contract with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying interest or a futures contract or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited.
   
   Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.
   
10. Additional Risks common to Futures and Options
    
    10.1 Terms and conditions of contracts
    
    You should ask the firm with which you deal about the terms and conditions of the specific futures or options which you are trading and associated obligations (e.g. the circumstances under which you may become obliged to make or take delivery of the underlying interest of a futures contract and, in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest.
    
    10.2 Suspension or restriction of trading and pricing relationships
    
    Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits or "circuit breakers") may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If you have sold options, this may increase the risk of loss.
    
    Further, normal pricing relationships between the underlying interest and the futures, and the underlying interest and the option may not exist. This can occur when, for example, the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge "fair value".
    
    10.3 Deposited cash and property
    
    You should familiarise yourself with the protections given to money or other property you deposit for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy. The extent to which you may recover your money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as your own will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall.
    
    10.4 Commission and other charges
    
    Before you begin to trade, you should obtain a clear explanation of all commission, fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.
    
    10.5 Transactions in other jurisdictions
    
    Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose you to additional risk. Such markets may be subject to regulation which may offer different or diminished investor protection. Before you trade you should enquire about any rules relevant to your particular transactions. Your local regulatory authority will be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where your transactions have been effected. You should ask the firm with which you deal for details about the types of redress available in both your home jurisdiction and other relevant jurisdictions before you start to trade.
    
    10.6 Currency risks
    
    The profit or loss in transactions in foreign currency-denominated contracts (whether they are traded in your own or another jurisdiction) will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency.
    
    10.7 Trading facilities
    
    Electronic trading facilities are supported by computer-based component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure. Your ability to recover certain losses may be subject to limits on liability imposed by the system provider, the market, the clearing house and/or participant firms. Such limits may vary: you should ask the firm with which you deal for details in this respect.
    
    10.8 Electronic trading
    
    Trading on an electronic trading system may differ from trading on other electronic trading systems. If you undertake transactions on an electronic trading system, you will be exposed to risks associated with the system including the failure of hardware and software. The result of any system failure may be that your order is either not executed according to your instructions or is not executed at all.
    
    10.9 Off-exchange transactions
    
    In some jurisdictions, and only then in restricted circumstances, firms are permitted to effect off-exchange transactions. The firm with which you deal may be acting as your counterparty to the transaction. It may be difficult or impossible to liquidate an existing position, to assess the value, to determine a fair price or to assess the exposure to risk. For these reasons, these transactions may involve increased risks. Off-exchange transactions may be less regulated or subject to a separate regulatory regime. Before you undertake such transactions, you should familiarise yourself with applicable rules and attendant risks.
    
11. Risk of Trading Warrants and Callable Bull/Bear Contracts
    
    Warrants and Callable Bull/Bear Contracts (CBBCs) are structured products which involve derivatives.
    
    You rely on the creditworthiness of the issuer of warrants and/or CCBCs. Subject to both the actual and perceived measures of the credit worthiness of its issuer and, there is no assurance of protection against a default by its issuer in respect of its payment obligations. Upon insolvency of the issuer, you may get nothing back and the potential maximum loss could be 100% of the investment amount and no return may be received.
    
    You are warned that the prices of warrants and CBBCs may fall in value as rapidly as it may rise and holders may sustain a total loss of their investment. CBBCs have a mandatory call feature and may therefore be subject to early termination, upon which (i) investors in category N CBBCs will lose all of their investments in the CBBCs; and (ii) the residual value of category R CBBCs may be zero.
    
    Before you purchase any warrants and/or CBBCs, you should ensure you understand the nature of warrants and/or CBBCs and carefully study the full details and risk factors set out in the relevant listing documents and, where necessary, seek professional advice before you invest in any of these products. You should also ensure that you fully understand the potential risks and rewards and independently determine that they are appropriate for you given your objectives, experience, financial and operational resources and other relevant circumstances. You should note that The Hongkong and Shanghai Banking Corporation Limited acting through its appointed liquidity provider may be the only market participant in HSBC-issued warrants and CBBCs.
    

What information do I need to provide to place an order?

The basic information required is the stock name, stock market, order size, your price limit and settlement currency. It is worth paying attention to the stock name. Using the full stock name in your order will ensure no misunderstanding on which stock to trade, as some stocks may have similar names. If in doubt, we will be happy to assist you based on your description of the abbreviated name, the nature of business and the latest closing price.

Can I set an expiry date for my order?

You can set a future date (up to 7 calendar days) as the expiry date when you place an order (except at-auction order and market order). If your order is not fully executed at market close on the day you place your order, the unfilled order quantity (in whole or in part) will be pending for execution again at your specified price on the next trade day and each following trade day until the order quantity is filled or until the expiry date.

Brokerage fee is charged on the order amount executed each day according to the Securities Services charges table. Please note the minimum brokerage fee.

(Effective from October 2024) How much fund should I hold in my settlement account after I have placed a buy order for HK Stock?

Please ensure that your settlement account has sufficient funds to settle your executed buy orders.

Limit Order:

Estimated total = Limit price x quantity x 101% + fees and charges (where applicable)

Market Order:

During Pre-Opening Session: 115% x Previous closing / listing price for newly listed stocks x quantity + fees and charges (where applicable)

During Continuous Trading Session: (Ask price + 9 spreads) x quantity + fees and charges (where applicable)

During Closing Auction Session: 105% x Last trade price x quantity + fees and charges (where applicable)

The actual settlement amount will be calculated and debited from your settlement account on T+2 by our system. Please note that the actual settlement amount may be greater than or lower than the amount calculated based on formulas above.

How do I deposit my HK stock physical certificate into my HSBC investment account?

If you would deposit your HK stock physical certificate into your HSBC investment account, you may visit any one of the designated branches in-person as shown below:

1.    Hong Kong Office                 Level 3, 1 Queen's Road Central, Central, HK

2.    Exchange Square Branch     Shop 102, 1/F, Exchange Square Podium, Central, HK

3.    North Point Branch              G/F, Winner House, 306-316 King's Road, North Point, HK

4.    Mong Kok Branch                U/G, 673 Nathan Road, Mong Kok, KLN

5.    Tsim Sha Tsui Branch          UG/F, 82-84 Nathan Road, Tsim Sha Tsui, KLN

6.    Kwun Tong Branch              G/F, Wong Tze Building, 71 Hoi Yuen Road, Kwun Tong, KLN

7.    Yuen Long Branch               G/F, HSBC Building Yuen Long, 150-160 Castle Peak Rd, Yuen Long, NT

8.    Tsuen Wan Branch              Shop Nos. 4A, 4B(A)-4B(C),5&6, Fou Wah Centre, 210 Castle Peak Road, Tsuen Wan, NT

9.    Tai Po Branch                    G/F, 54-58 Kwong Fuk Road, Tai Po, NT

What is Severe Weather Trading?

After the Hong Kong Exchanges and Clearing Limited (HKEx) implemented Severe Weather Trading (starting from 23 September 2024), Hong Kong securities and derivatives markets remain open during trading days with severe weather conditions, such as where a Typhoon Signal No.8 or above and/or a Black Rainstorm Warning is issued by the Hong Kong Observatory, or if an "extreme conditions" announcement is made by the HKSAR Government. More details about Severe Weather Trading can be found from the website of HKEx.

What is the trading arrangement on a Severe Weather Trading day in Hong Kong?

On a Severe Weather Trading day: (1) the HKEx will maintain trading, post-trade and listing arrangements in its securities and derivatives markets; (2) you can trade HK and China Connect Securities and/or apply for a HK IPO via HSBC HK Mobile Banking App, HSBC HK Easy Invest App, HSBC HK Online Banking or our phone banking service (where applicable); and (3) you can transfer funds online to your settlement account (note that you may need to adjust your transfer limits in advance to meet your trading needs, and settlement or margin obligations if applicable). To ensure safety, our branches in Hong Kong will be closed.

Please note that physical scrip deposit / withdrawal and stock transfer services will not be available on a Severe Weather Trading day.

What should I pay attention to regarding the Securities Margin Trading Service on a Severe Weather Trading day in Hong Kong?

Please note that you could still be subject to a margin call or forced liquidation of securities on a Severe Weather Trading day.

Will trade settlement take place on a Severe Weather Trading day in Hong Kong?

Yes, trade settlement will take place on a Severe Weather Trading Day. Please ensure that you have sufficient funds in your settlement account to meet your settlement obligations.

What should I pay attention to regarding Corporate Actions handling services on a Severe Weather Trading Day in Hong Kong?

Corporate actions will be processed in accordance with the Hong Kong Securities Clearing Company Limited (HKSCC)’s arrangement. For example :

• Cash dividend distribution will be paid upon receipt of fund via HKSCC on the same day
• Stock dividend and bonus issue may be processed on the next business day according to distribution via HKSCC
• Stock consolidation and splitting, and change in board lot size of stock will be processed as scheduled

More details of corporate actions arrangements on a Severe Weather Trading day in Hong Kong can be found from the website of the Hong Kong Exchanges and Clearing Limited.

Please ensure that you have sufficient funds in your settlement account to meet your settlement obligations.

Tier 1 refers to securities that are traded in S&P 500, Russell 1000 and selected exchanged-traded products. Tier 2 refers to all other securities.

Example for illustrative purpose only:

A stock is trading on S&P 500 and the current average reference price is $50.00 during market hours. If customer wants to place a market order of 10 shares of this stock, the Bank will display the “Estimated Total” of $525.00 (Limit up price is $50.00 x 105% = $52.50) and you should ensure that you have sufficient funds in your settlement account to settle the order after it is executed.

Under what circumstances will the purchase of SSE and SZSE securities not be accepted?

Investors will not be able to buy SSE and SZSE securities under certain circumstances, which includes, but not limited to:

a) the SSE and SZSE securities cease to be a constituent stock of the relevant indices;

b) the SSE and SZSE securities are under "risk alert";

c) the corresponding H share of the SSE and SZSE securities cease to be traded on SEHK;

d) the Daily Quota Balance drops to zero or is exceeded;

e) where foreign investors hold more than a specified level of the SSE and SZSE securities;

f) whenever the HKEx determines that it is appropriate and in the interest of a fair and orderly market to protect investors;

g) hoisting of a Typhoon Signal No. 8 or above or the issuance of the Black Rainstorm Warning in Hong Kong;

h) investors fail to provide information as requested by relevant regulator.

i) shares not traded in RMB

Investors are advised to refer to the HKEx website and the SFC website relating to Shanghai and Shenzhen Stock Connect as updated from time to time and other relevant sources for detailed information.

Why is my China A/ China B stock order being rejected or not sent to exchange for execution ?

When we, HSBC (or its relevant broker) submits your order to an exchange, we do so in an orderly manner and in comply with any applicable local regulation/exchange trading rules/market requirements. Under certain circumstances, for example, if your order requested price is away from where the security is trading or if the order is particularly large to the market, we may need to reject the order without prior notice to you to ensure the market integrity and protect your interest. For China A stock, if your order is rejected, the order status will change to ‘unexecuted’ within the ‘Order Status’ enquiry. Please be reminded to check the latest order status. For China B stock, you may call our Premier Elite Dedicated Service Line on (852) 2233 3033 or Premier Customers Hotline on (852) 2233 3322 to check the latest order status.

In situations where we need to contact you to confirm the order details, we will not place your order to the exchange for execution until clarification is obtained.

Can I subscribe for Shanghai or Shenzhen A Stock initial public offering (IPO)?

According to HKEx, it is not currently contemplated that ShanghaiHong Kong and Shenzhen-Hong Kong Stock Connect will support initial public offering (IPO).

Where can I obtain more information on Shanghai–Hong Kong and Shenzhen-Hong Kong Stock Connect?

For latest details and further info, please visit the dedicated Stock Connect homepage of HKEx.

How can I obtain the latest company announcement?

All approved corporate actions on SSE and SZSE Securities will be announced by the issuers through the SSE and SZSE websites respectively and four officially appointed newspapers (both the printed paper and their websites): the Shanghai Securities News, Securities Times, China Securities Journal and Securities Daily. Hong Kong and overseas investors can visit the SSE, SZSE and newspaper websites for the latest listed company announcements.

You can also visit HKEx website’s China Stock Markets Web for the company announcements of SSE and SZSE Securities issued on the previous trading day.

Hong Kong and overseas investors trading SSE and SZSE Securities through Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect should note that SSE and SZSE listed issuers will continue to publish corporate documents in Chinese only as their current practice, and English translation will not be available.

What is Severe Weather Trading?

After the Hong Kong Exchanges and Clearing Limited (HKEx) implemented Severe Weather Trading (starting from 23 September 2024), Hong Kong securities and derivatives markets remain open during trading days with severe weather conditions, such as where a Typhoon Signal No.8 or above and/or a Black Rainstorm Warning is issued by the Hong Kong Observatory, or if an "extreme conditions" announcement is made by the HKSAR Government. More details about Severe Weather Trading can be found from the website of HKEx.

What is the trading arrangement on a Severe Weather Trading day in Hong Kong?

On a Severe Weather Trading day: (1) the HKEx will maintain trading, post-trade and listing arrangements in its securities and derivatives markets; (2) you can trade HK and China Connect Securities and/or apply for a HK IPO via HSBC HK Mobile Banking App, HSBC HK Easy Invest App, HSBC HK Online Banking or our phone banking service (where applicable); and (3) you can transfer funds online to your settlement account (note that you may need to adjust your transfer limits in advance to meet your trading needs, and settlement or margin obligations if applicable). To ensure safety, our branches in Hong Kong will be closed.

Please note that stock transfer services will not be available on a Severe Weather Trading day.

Will trade settlement take place on a Severe Weather Trading day in Hong Kong?

Yes, trade settlement will take place on a Severe Weather Trading Day. Please ensure that you have sufficient funds in your settlement account to meet your settlement obligations.

What should I pay attention to regarding Corporate Actions handling services on a Severe Weather Trading Day in Hong Kong ?

Corporate actions will be processed in accordance with the Hong Kong Securities Clearing Company Limited (HKSCC)’s arrangement. For example :

• Cash dividend distribution will be paid upon receipt of fund via HKSCC on the same day
• Stock dividend and bonus issue may be processed on the next business day according to distribution via HKSCC
• Stock consolidation and splitting, and change in board lot size of stock will be processed as scheduled

More details of corporate actions arrangements on a Severe Weather Trading day in Hong Kong can be found from the website of the Hong Kong Exchanges and Clearing Limited.

What is meant by Dollar Cost Averaging?

Dollar Cost Averaging refers to the buying of securities at scheduled intervals, irrespective of the dollar amount, whether the stock price is rising or falling. When the share price is low, more shares can be bought and vice versa. At such, the average cost will be less than the average of the price paid. The risk arising from short-term market fluctuations will be reduced as a result.

How does SMIP work?

• The Cut-off Date of SMIP is on the 7th calendar date of each month (23:59 HK time) including Saturday, Sunday or a Hong Kong public holiday. Customers should submit their instruction to setup a new SMIP, amend or terminate an existing SMIP on or before the Cut-off Date of each month.
• Customers should ensure their designated cash account has sufficient available funds to cover the gross monthly investment contribution of their existing SMIP from the first business day after the Cut-off Date until 2 business days after the stock is purchased.
• On the second business day after the Cut-off Date, HSBC will confirm whether customers’ designated cash account has sufficient funds before arranging the purchasing order to buy the stocks.
• On the third trading day after the Cut-off Date (Transaction Date), HSBC will purchase stocks on behalf of all SMIP customers at the prevailing market price.
• On the second business day after Transaction Date (Settlement Date), the actual settlement amount of stocks purchased will be debited from customers’ designated cash account and the average purchase price for all stock purchases will be used as the settlement price as well as to calculate fees and charges
• Purchased stocks will be deposited into customers’ investment services or securities account on the settlement date (i.e. the second business day after the Transaction Date)

I had terminated a SMIP for the stock “ABC” previously, I start a new SMIP to subscribe the same stock now. Can you consolidate the average purchase price of this stock in these 2 SMIP plans (i.e., the old one and the existing one together)?

No. We calculate the average purchase price of a stock purchased in the same plan (under the same reference number) only.

You can find your plan reference number is on the SMIP contract note and on the Online Banking – Stock Monthly Investment Plan Page, by logging on to “Online Banking” > “Stock Monthly Investment Plan”.

If I have a previously terminated SMIP, how does this affect the calculation of my SMIP stocks?

We calculate the average purchase price of a stock purchased in the same plan (under the same reference number) only and each SMIP plan will have a different plan reference number.

This average purchase price, as well as your plan reference number, can be found by logging on to “Online Banking” > “Stock Monthly Investment Plan”.

Is there a minimum investment period?

There is no minimum investment period. Your chosen stocks will be purchased and deposited into your securities account on a monthly basis, after settlement of which you can sell the shares anytime to capture the profit or meet emergency needs. You also have the flexibility to suspend or stop your contribution as needed.
However, you are recommended to treat it as a medium-to long-term investment as you will be able to enjoy higher growth potential of the stocks over time without having to worry about any short-term market fluctuations.

Is there any minimum transaction amount for setting up or amending or cancelling SMIP?

The minimum amount for setting up or amending a SMIP is HKD1,000.

How can I set up a Stocks Monthly Investment Plan with HSBC?

Apply now at HSBC Online Banking, or Simply visit any HSBC branch in Hong Kong to set up the Stocks Monthly Investment Plan.

How can I amend my SMIP?

You may (a) apply to amend online or (b) apply in person at any one of our branches in Hong Kong or (c) apply to amend through our phonebanking service .

If you choose to apply to amend online, please logon to HSBC Online Banking, you may (1) click "My investment" ; (2) click "Order Status" ; (3) click "Stocks Monthly Investment Plan"; (4) choose an existing SMIP that needs to be amended ; (5) click "Modify"; (6) read and accept the Important notes and Terms and Conditions and (7) submit the online application form, and we will follow up with your Instruction accordingly.

How can I terminate my SMIP?

You may (a) apply to amend online or (b) apply in person at any one of our branches in Hong Kong or (c) apply to amend through our phonebanking service .
If you choose to apply to amend online, please logon to HSBC Online Banking, you may (1) click "My investment" ; (2) click "Order Status" ; (3) click "Stocks Monthly Investment Plan"; (4) choose an existing SMIP that needs to be amended ; (5) click "Modify"; (6) read and accept the Important notes and Terms and Conditions and (7) submit the online application form, and we will follow up with your Instruction accordingly.

Are they very expensive?

You can start up a unit trust for the price of a dinner for two, and you can make a monthly minimum contribution of as little as HKD1,000.

Can I get easy access to my investment?

Unit trusts are very flexible and you can buy and sell unit trusts on any (dealing) day. Your proceeds can take as little as seven working days to access.

Do I have to make a lump sum investment?

You don't need to make a large lump sum investment. We can also offer you a monthly investment plan where no initial lump sum is required and the monthly contribution is as low as HKD1,000.

Are they high risk?

Unit trusts obviously have an element of risk but less so than direct investment on the stock market. Risk is comparatively lower because it may be spread over a number of years, a variety of commodities, currencies or countries - you are spreading the risk.

Are the returns low?

Because unit trusts are comparatively low-risk investment, they therefore can offer lower rates of return in comparison to high-risk direct investments.

Are they difficult to monitor?

Professional fund managers do this for you, so you don't have to monitor them on a daily basis. They have access to information and research statistics from economists and analysts around the world, and keep you updated of major changes.

Are the commission fees high?

Unit trust fees are actually much lower than if you were to set up an individual fund or investment. This is due to economies of scale. As a large number of investors are involved in a fund the fee cost is therefore shared and thus reduced.

What are the different types of Unit Trusts available through HSBC?

HSBC offers wide range of unit trusts under 3 major asset categories, namely Equity funds, Balanced or Multi-assets funds and Fixed Income funds. Individual funds investing in different regions, has different investment strategies and investment objectives to better serve our customer's wealth needs against his/her risk appetite.

Are unit trusts investment similar to a pension plan?

Broadly speaking, unit trusts serve as one of the major investment tools to fulfill customer's retirement needs and planning currently. It also serves to cater customer's education needs, for wealth accumulation and other wealth needs.

What are the key charges in Unit Trusts? How can I access to these fees details and understand the potential risks involved?

The relevant fees and charges of individual unit trusts may vary, including but not limited to Initial Charge and Annual Management Fee. Please refer the detailed fees and charges from the respective offering documents.

What are the risks in investing in Unit Trusts?

In general, investors are exposed to following risks in investing in unit trusts and investors should refer to the individual product offering document for further details and risks involved.

• Investment Risk - Unit Trusts are NOT equivalent to time deposits. They are investment products and some may involve derivatives. Investment involves risks. Past performance is no guide to future performance of the funds. Value of the investments can fluctuate and is not guaranteed.
• Credit risk - For funds investing in bonds, bonds are subject to the risk of the issuer defaulting on its obligations. It should also be noted that credit ratings assigned by credit rating agencies do not guarantee the creditworthiness of the issuer
• Liquidity risk - There is a risk that investments made by a unit trust may become less liquid in response to unfavourable market developments or market sentiment
• Currency risk - If the fund's assets and income are denominated in currencies other than the base currency of the fund, currency movement may affect the value of the fund's share price.

How can I subscribe or redeem unit trusts through my HSBC account?

You can place your subscription and redemption orders via HSBC Internet Banking. If you already have an HSBC Investment Services/Securities account, you can simply log on and execute your orders with us. We also offer Unit Trusts Investment Services through our branches. To open an Investment Services/Securities account, simply visit www.hsbc.com.hk any time or visit any HSBC branch in Hong Kong.

Will the bank provide me with regular statements of my unit trusts investment?

Yes, HSBC will provide contract note of relevant transactions and you can also find your unit trusts holding record in the monthly consolidated statement (if applicable).

How can I benefit from investing in Structured Products?

Customer can benefit from investing in Structured Products:

• Return - by participating in the performance of various underlying assets to achieve a higher potential return in some market situation.
  
• Capital Protection - some types of Structured Products offer investors principal protection at maturity.
• Callable - some Structured Products come with auto-callable or callable feature, which enable the investors to receive their investment capital earlier than maturity.
• Portfolio diversification - allowing diversification through participation in the performance of different assets or markets.

What is Pre-Investment Cooling-off Period?

Effective from 1 January 2011, a Pre-Investment Cooling Off Period arrangement is required by the Hong Kong Monetary Authority (HKMA) for non-listed derivative product purchases to enhance investor protection to ensure that customers have sufficient time to consider the non-listed derivative product purchase.

Pre-Investment Cooling-off Period (PICOP) is applicable to each particular dealing of the Structured Products if investor is one of the following retail customer types who place order via branch:

(1) An elderly customer aged 65 or above, unless investor is not a first-time buyer of that particular type of structured products AND investor's asset concentration^{^} is below 20% AND investor opts out from the PICOP arrangement; or

(2) A non-elderly investor who is a first time buyer of that particular type of structured products AND investor's asset concentration is 20% or above.

If Pre-Investment Cooling-off Period is applicable to investor, investor can only subscribe for the product at least 2 calendar days (of which the last day should be a business day) after product discussion with the Bank. This is to ensure that investor have sufficient time to understand the product and consider the appropriateness of the investment before deciding on the subscription.

^{^} For the purpose of determining whether PICOP is applicable, asset concentration refers to the percentage of total net worth (excluding real estate properties) to be invested in this product.

What is Post-Sale Cooling-off Period?

If the investment period of the Equity Linked Investment customers subscribe is more than one year, customer can cancel or unwind (as the case may be) the whole of the Equity Linked Investment purchase order during the period from (and including) the date customers place the purchase order to (and including) the fifth Hong Kong business day after the order date (this period is referred to as the post-sales cooling-off period), and get back the issue price minus any negative market value adjustment. Please refer to the Product Booklet for details. The Bank does not apply any handling charge on such cancel or unwind order. If customers choose to cancel or unwind the Equity Linked Investment purchase order during the post-sales cooling off period, please contact our branch between 10:00am and 12:00 noon on any Hong Kong business day during the post-sales cooling-off period. Our staff will help you complete the sell order form.

What are the different types of Structured Products available through HSBC?

Structured Products linked to various underlying including equity, Exchanged Traded Fund (ETF), foreign exchange (FX), and interest rates are offered in HSBC.

Will the bank provide me any confirmation advice/ contract note of my investment?

Advice will be provided to customers upon deposit placement & maturity for Deposit Plus, Capital Protected Investment Deposits, and Equity Linked Investments.

What are the risks in investing in Structured Products?

In general, investors are exposed to following risks in investing in Structured Products and investors should refer to the individual product offering document for further details and risks involved.

• Not equivalent to a time deposit - Structured products are embedded with derivatives and are not equivalent to time deposits.
  
• Maximum potential loss - For non capital protected structured products, the downside risk may be unlimited, and you could lose all of the investment in extreme cases.
• Market risk - You will be exposed to the market risks and price movement of the reference asset, which will affect the payout under the structured product.
• Liquidity risk - Some structured products do not offer redemption feature and you must be prepared to invest in the product for the entire tenor of the product. For products with redemption feature, you may sell the product before maturity but you may suffer a potential loss of principal irrespective of the asset price performance.
• Credit risk / Default Risk of Issuer - If the issuer becomes insolvent or defaults on its obligations under the product, you can only claim as an unsecured creditor of the issuer. In the worst scenario, you could lose all of your investment.
• Currency risk - If the settlement currency is not your home currency, you may make a gain or loss due to exchange fluctuations.

What are the different fees & charges for Structured Products?

In general, there are no additional charges on investing Structured Products, all operational, administrative and hedging costs, etc have already been contained and subsumed within the calculation of the return and/or other variables of the Product.

(For HK stocks only) If customer elects for physical settlement for Equity Linked Investment, customer will need to pay for related deposit transaction charge plus stamp duty for the underlying assets being deposited to your investment account.

Can I sell the Structured Products before it matures? Is there a penalty to unwind early?

Customers can early sell back Equity Linked Investments and Interest Rate Linked Capital Protected Investment Deposit subject to individual product offering documents. The early sell back price will be subject to prevailing market conditions and may be less than the principal amount of the original investment.

Are there any specific eligibility requirements for subscribing ELIs linked to US stock(s)?

Yes, you are required to hold a valid W-8BEN Form record before subscribing for ELIs linked to US stock(s). If needed, you may submit a Substitute Form W-8BEN through HSBC Online Banking, HSBC HK Easy Invest app or visiting any HSBC branches in Hong Kong. Apart from that, you will have to conduct a suitability assessment with reference to your personal circumstances during the subscription process.

What stock markets do your ELIs cover?

Our equity linked investment services include both Hong Kong and US securities as the underlying choices.

Can I create a DCDC ELI product with both HK and US stocks in the same basket?

No, you can create your own ELI product with a basket of HK stocks OR US stocks, however HK stocks and US stocks cannot be put into the same basket when building one ELI product.

When can I create my own ELI product through HSBC Online Banking?

You can build your own ELI product linked to HK Stock(s) through HSBC Online Banking from 9:30 am to 3:10 pm on trading days from Monday through Friday (Hong Kong Time) (“HKT”) (excluding Hong Kong public holidays, half-day trading, or market disruption days).

While for ELI product linked to US Stock(s),  you can create it from 9:30 am to 5:30 pm (HKT) on trading day from Monday to Friday (except for Hong Kong and United States public holidays, half-day trading, or market disruption day).

What is FX Order Watch Trading Services?

FX Order Watch Trading Services is available to HSBC Premier and HSBC One customers only. Customers can pre-set their own target FX rate using Internet Banking or Mobile Banking to convert funds automatically within accounts for the foreign exchange when the FX rate is hit. It also provides an alert service which customers will be informed via SMS/email when the FX rate is hit.

What can I use FX for?

Customers can use HSBC's foreign exchange services for many purposes which include but not limit to the followings :

• Meet your "wealth accumulation" needs, e.g. pre-set instruction using RMB switching service to accumulate RMB at your own pace.
• Meet your "family" needs, e.g. use FX Order Watch and alert service to pre-set instruction to convert funds to other currenices at your preferred rate to settle oversea payment like mortgage or tuition fee for your children.
• Meet your "Lifestyle needs", e.g. use pre-order foreign currencies services when you plan to travel to overseas so as to save your queuing time for currency exchange at branch.

What are the regulatory restrictions related to FX?

There are no Hong Kong regulatory restrictions on general foreign exchange.

Who can transact in FX?

All customers who have valid foreign currency account can transact in FX.

What platforms are available for me to deal in FX?

Following major service platforms are available for HSBC customers to conduct FX transactions :

• FX Order Watch Trading Service
• FX / RMB Switching Service
• 24-hour online foreign exchange service

Please refer to the Foreign Exchange section in our website for more details of each service.

What are the risks associated with FX products?

When conducting in foreign exchange, customers need to be aware of the following risks.

Currency conversion risk - the value of your foreign currency and RMB deposit will be subject to the risk of exchange rate fluctuation. If you choose to convert your foreign currency and RMB deposit to other currencies at an exchange rate that is less favourable than the exchange rate in which you made your original conversion to that foreign currency and RMB, you may suffer loss in principal.

Being a customer, will I get access to latest FX update and houseviews?

HSBC customers are provided with timely and comprehensive FX information from our FX specialist. Please refer to Foreign Exchange Market News section in our website and you will find the latest FX market information, including trend chart, technical analysis and comments from our FX specialist for most major currencies.

What are the various FX services that Bank offers me?

HSBC offers a comprehensive foreign exchange services to customers which include :

• 24-Hour Foreign Exchange Service
• Pre-order Foreign Currency Service
• ForEx/Renminbi Switching Services
• FX Order Watch Trading Services

Please refer to Foreign Exchange section in our website for more details

Is the real-time currency exchange service 24/7?

Yes. The real-time currency exchange service is available 24/7 via HSBC Online and Mobile Banking for all-in-one integrated accounts and HKD Passbook Savings account except during system maintenance hours and special circumstances.

For USD/CombiNation Passbook Savings account, service hours are from Monday to Friday 8:00am to 7:00pm and Saturday 8:00am to 4:30pm HKT, except on:

• Hong Kong public holidays
• 12:00am to 7:59am HKT on 26 December and 2 January
• when a Black Rainstorm Warning Signal or Typhoon No. 8 signal or above is hoisted

The real-time currency exchange service via phone banking is only available from Monday 5:00am to Saturday 4.59am and Saturday 8:00 am to 4.30 pm HKT, except on:

• 25 December and 1 January (whole day)
• 12:00am to 7:59am HKT on 26 December and 2 January
• when a Black Rainstorm Warning Signal or Typhoon No. 8 signal or above is hoisted

Where can I deposit my share certificate(s)?

If you need to deposit your share certificate(s), please visit any of the following 10 branches:

• Hong Kong Office
• Exchange Square Branch
• Hopewell Centre Branch
• North Point Branch
• Mong Kok Branch
• Tsim Sha Tsui Branch
• Kwun Tong Branch
• Yuen Long Branch
• Tai Po Branch

Please refer to the Branch and Express Banking Locator for contact details of the branches.

What are the risks associated with IPOs?

Over-subscribing to an IPO

In some cases, IPOs may be oversubscribed. The company may go through a balloting/allocation process to determine whether an investor will receive any securities and if so, in what quantity. An investor may be tempted to subscribe for a greater quantity than he intended to, believing that he will not receive the full amount in case of over-subscription. However if the IPO is not oversubscribed, the investor will receive all the quantity applied for and will have to pay the full cost.

Market risk

There is a risk that the company's share price will drop below its initial IPO price, once the company's securities/bonds trading (on the stock market or otherwise) commences. Securities/bond/ prices will fluctuate over time.

Company risk

It is vital to understand the company and the business you are investing in. Thoroughly study the prospectus, financial reports and even seek professional advice before you make investment decisions. For more information on investing, visit our Investment Services.

What is HSBC IPO Nominees Services?

It is a service open for HSBC Investment Services/Securities account holders to subscribe for newly listed/issued securities/bonds/certificates of deposits in IPO in HSBC Nominee's name. Customers can click on www.hsbc.com.hk and follow the links to fill in the IPO application form and choose the settlement account from any of their HSBC accounts.

What are the benefits of applying with HSBC IPO Nominees Services?

HSBC would like to provide you with the greatest convenience. If you choose to apply for securities with HSBC IPO Nominees Services (to do so, you must maintain an Investment Services/Securities account with HSBC), we will help you through with the whole application process, and you may enjoy the following benefits:

• Payment Convenience - you can choose to pay the application money from any of your HSBC account and we will directly debit your account, saving much of your time in payment arrangement.
• Earliest Availability - your allotted securities/bonds/certificates of deposit will be directly credited into your Investment Services/Securities account on the first listing/issue day, which will allow you to take immediate actions according to market conditions.
• Refund Convenience - any refund of the application money will be directly credited to your payment account.

What amount of funds should I hold in my settlement account after I have submitted an IPO application?

total share cost = price per share * number of shares applied
total amount of payment = total share cost + brokerage + handling charge (if any) + SFC transaction levy + FRC transaction levy (effective on 1 Jan 2022)
+ Stock Exchange trading fee  

The amount of funds you should hold in your settlement account is the total amount of payment rounded up to nearest integer. Please note that the actual settlement amount may be greater than or lower than the amount calculated in the formulas above. The bank may adopt some rounding measures in calculation of Transaction levies, Stamp Duty and HKEx Trading Fee, but will ensure that this never results in our customers paying more than the stated levy. The bank will also ensure that the correct levies will be paid to the relevant regulatory authorities.

Do I need to register with HSBC if I apply through HSBC IPO Nominees Services? Is there any service charge or handling fee?

Yes, to apply through HSBC IPO Nominees Services, you need to maintain an Investment Services/ Securities account with the Bank. The securities/bonds/certificates of deposit allotted will be directly deposited into the Investment Services/Securities account with the Bank. Unless otherwise specified, there will be a handling charge of HKD50 for every stock IPO application through HSBC HK Easy Invest app, HSBC HK Mobile Banking app ,or HSBC Personal Internet Banking. The handling charge will be HKD100 if the stock IPO application is through our designated branches or IPO service hotline on (852) 2269 2121. For bond and certificates of deposit IPOs, there will be a handling fee of 0.15% on the subscription amount through HSBC designated branches, IPO service hotline, HSBC Personal Internet Banking. There may also be other charges in respect of individual IPO. Please refer to the details of respective IPO at the eIPO Centre.

How can I make the application payment for the application? Is there any maximum payment limit applicable?

With HSBC IPO Nominees Services, you can choose to debit the application money from any of your HSBC savings or current accounts.

There is no payment limit as long as you have deposited enough money for the application in your chosen settlement account. However, you should ensure that there are sufficient funds in the account to cover the full subscription cost no later than 12 midnight on the day which is one business day prior to the closing date of the public offer period, otherwise, your IPO application will be cancelled accordingly.

Is online IPO application available 24 hours a day?

Yes, it is a round-the-clock service and you can submit your application via HSBC HK Easy Invest app (Stock IPO only), HSBC HK Mobile Banking app (Stock IPO only) ,or HSBC Personal Internet Banking (for Stock IPO) for the particular IPO anytime within the specified HSBC IPO Nominees Services offering period.

How do I know whether my IPO application has been successfully submitted?

You can check your application progress on the 'Order status' page via HSBC Online Banking, HSBC HK App or HSBC HK Easy Invest app. If your IPO application is submitted successfully, you'll see the status for your IPO application on the page.

Can I amend or cancel my stock IPO application?

You cannot amend a stock IPO application, but you can cancel a stock IPO and submit a new application before the cut-off time.

You can do so via HSBC Online Banking, HSBC HK Mobile Banking App or HSBC HK Easy Invest App before the cut-off time of that stock IPO application. To cancel an applied stock IPO, find the stock IPO application in the 'Order status' page and then select 'Cancel'.

How do I know if my IPO application is successful or not?

If your IPO application is successful, newly allotted stocks/ bonds/ certificates of deposit will be credited into your Investment Services/ Securities account on the date of issuance. You can then take immediate action according to market conditions.

How will I be refunded should my application be partially successful or wholly unsuccessful?

For partially successful and wholly unsuccessful applications, the application money (or part thereof) will be credited back directly to your chosen settlement account within the days specified in the respective Prospectus/Offering Memorandum.

How do I determine my investment risk tolerance?

You can make use of our Risk Profiling Questionnaire to help you find out more about your investment risk tolerance.

How can I research and keep track of my investments?

The more you know about what you're investing in the better. Stock prices and unit trust prices are quoted in the newspapers and on the Internet, and you can keep track of spot prices through your broker or your bank. 

You should also read through the relevant offering documents before making an investment decision to ensure that you understand the product features, potential return and risks involved. Constant review helps to keep your investments up-to-date. You can consult the bank for a review of your holdings. You can also track and review your investments through our Personal Internet Banking.