Grade Based MarginNEW
Grade-Based Margin Grade-Based Margin rate as low as 1.5% p.a.

Introduction

 

Interest rate and the interest calculation in Grade-Based Margin financing is based on the stock ranking. There are 3 layers of outstanding based on stock quality and margin value* in Grade-Based Margin financing.

Higher proportion of blue chips in securities portfolio , lower interest rate it is. It is as low as 1.5% ! The calculation of interest rate is as follows：

 

int-table

 

Footnotes:

P refers to the Prime rate of Standard Chartered Bank.

1Other stock refers to all stocks that are not in Grade 1 Stock List.

Call for Deposit interest rate for Hong Kong Dollar (HKD) is 13.750% (P+8.500%) p.a.

For introduction and margin cost calculation, please click Graded-based Margin GOr margin rates of other currencies, please visitMargin Rates

 

* Negotiable interest rate for more sizable loan amount. Please contact or  

 

 

 

Footnote 1: The above grade-based interest rate will be based on the effective rate which is subject to the latest Hong Kong Dollar Prime (P) rate of Standard Chartered Bank.

Footnote 2: The flat interest rate for non grade-based margin account is P(HKD Prime rate of Standard Chartered Bank) + 3%.

*The margin ratio of stock is for reference only, which is subjected to change as determined by both the market and specific company factor. The company deserves the right to provide a different ratio to client based on his account situation.

Clients must submit supporting documentation to the Company to confirm that the depository payment is from his/her own bank account. Acceptable documentation include, but is not limited to, bank statements, cheque images, and online banking screenshots. The deposit will be credited to the Client account on the day that supporting documentation is provided. Until the supporting documentation is submitted, the deposit will not be treated as “credited”. The daily cut-off time for collecting the supporting documentation is 4:00 p.m., any supporting documentation received after 4:00 p.m. will be deemed to be received on next working day. Clients will be liable for any relevant interest, commission, fines and other charges incurred as a result of not being  "credited".

Introduction

 

The interest rate and the interest calculation in Professional Investor Grade-Based Margin (“PI GBM”) financing are calculated based on the grading of each stock in your portfolio.

 

By being a Professional Investor, you can join our Professional Investor Grade-Based (“PI GBM”) Financing.

 

Higher proportion of Grade 1 Stock in securities portfolio, lower interest rate!

The margin financing rate of the portion of the Grade 1 Stock holding over HKD $1,000,000 can be reduced to as low as 3%.

 

Complete the form and submit it to your account executive to register as a Professional Investor with us today.

The calculation of interest rate is as follows:

int-table

 

Example: Assume if a client has sufficient Grade 1 Stock margin value

int-table

Footnote 1: The above grade-based interest rate will be based on the effective rate which is subject to the latest Hong Kong Dollar Prime (P) rate of Standard Chartered Bank.

Footnote 2: The flat interest rate for non grade-based margin account is P(HKD Prime rate of Standard Chartered Bank) + 3%.

*The margin ratio of stock is for reference only, which is subjected to change as determined by both the market and specific company factor. The company deserves the right to provide a different ratio to client based on his account situation.

Clients must submit supporting documentation to the Company to confirm that the depository payment is from his/her own bank account. Acceptable documentation include, but is not limited to, bank statements, cheque images, and online banking screenshots. The deposit will be credited to the Client account on the day that supporting documentation is provided. Until the supporting documentation is submitted, the deposit will not be treated as “credited”. The daily cut-off time for collecting the supporting documentation is 4:00 p.m., any supporting documentation received after 4:00 p.m. will be deemed to be received on next working day. Clients will be liable for any relevant interest, commission, fines and other charges incurred as a result of not being  "credited".

Stock Code Market Stock Name Margin Ratio
1 HK CKH HOLDINGS 0.8
2 HK CLP HOLDINGS 0.85
3 HK HK & CHINA GAS 0.85
4 HK WHARF HOLDINGS 0.7
5 HK HSBC HOLDINGS 0.8
6 HK POWER ASSETS 0.85
11 HK HANG SENG BANK 0.85
12 HK HENDERSON LAND 0.8
16 HK SHK PPT 0.8
17 HK NEW WORLD DEV 0.8
19 HK SWIRE PACIFIC A 0.8
23 HK BANK OF E ASIA 0.7
27 HK GALAXY ENT 0.6
66 HK MTR CORPORATION 0.85
83 HK SINO LAND 0.8
101 HK HANG LUNG PPT 0.8
135 HK KUNLUN ENERGY 0.7
144 HK CHINA MER PORT 0.8
151 HK WANT WANT CHINA 0.8
152 HK SHENZHEN INT'L 0.6
165 HK CHINA EB LTD 0.7
175 HK GEELY AUTO 0.8
241 HK ALI HEALTH 0.6
257 HK EB ENVIRONMENT 0.7
267 HK CITIC 0.8
270 HK GUANGDONG INV 0.8
288 HK WH GROUP 0.7
291 HK CHINA RES BEER 0.7
322 HK TINGYI 0.7
345 HK VITASOY INT'L 0.6
371 HK BJ ENT WATER 0.7
384 HK CHINA GAS HOLD 0.7
386 HK SINOPEC CORP 0.8
388 HK HKEX 0.8
392 HK BEIJING ENT 0.8
425 HK MINTH GROUP 0.4
486 HK RUSAL 0.4
656 HK FOSUN INTL 0.7
669 HK TECHTRONIC IND 0.8
683 HK KERRY PPT 0.7
688 HK CHINA OVERSEAS 0.8
700 HK TENCENT 0.8
728 HK CHINA TELECOM 0.8
762 HK CHINA UNICOM 0.8
772 HK CHINA LIT 0.6
788 HK CHINA TOWER 0.7
817 HK CHINA JINMAO 0.3
823 HK LINK REIT 0.8
836 HK CHINA RES POWER 0.7
857 HK PETROCHINA 0.8
868 HK XINYI GLASS 0.6
880 HK SJM HOLDINGS 0.6
881 HK ZHONGSHENG HLDG 0.4
883 HK CNOOC 0.8
884 HK CIFI HOLD GP 0.2
939 HK CCB 0.8
941 HK CHINA MOBILE 0.8
960 HK LONGFOR GROUP 0.4
966 HK CHINA TAIPING 0.7
968 HK XINYI SOLAR 0.4
981 HK SMIC 0.4
992 HK LENOVO GROUP 0.7
998 HK CITIC BANK 0.6
1024 HK KUAISHOU-W 0.7
1038 HK CKI HOLDINGS 0.8
1044 HK HENGAN INT'L 0.8
1066 HK WEIGAO GROUP 0.4
1088 HK CHINA SHENHUA 0.8
1093 HK CSPC PHARMA 0.6
1099 HK SINOPHARM 0.65
1109 HK CHINA RES LAND 0.8
1113 HK CK ASSET 0.8
1114 HK BRILLIANCE CHI 0
1128 HK WYNN MACAU 0.5
1169 HK HAIER ELEC 0.6
1177 HK SINO BIOPHARM 0.6
1193 HK CHINA RES GAS 0.6
1211 HK BYD COMPANY 0.7
1288 HK ABC 0.8
1299 HK AIA 0.8
1313 HK CHINARES CEMENT 0.6
1336 HK NCI 0.65
1339 HK PICC GROUP 0.7
1398 HK ICBC 0.8
1530 HK 3SBIO 0.5
1579 HK YIHAI INTL 0.3
1658 HK PSBC 0.7
1800 HK CHINA COMM CONS 0.7
1801 HK INNOVENT BIO 0.4
1810 HK XIAOMI-W 0.8
1833 HK PA GOODDOCTOR 0.5
1876 HK BUD APAC 0.7
1913 HK PRADA 0.5
1918 HK SUNAC 0
1928 HK SANDS CHINA LTD 0.6
1929 HK CHOW TAI FOOK 0.7
1972 HK SWIREPROPERTIES 0.7
1988 HK MINSHENG BANK 0.3
1997 HK WHARF REIC 0.8
2007 HK COUNTRY GARDEN 0.2
2018 HK AAC TECH 0.6
2020 HK ANTA SPORTS 0.6
2057 HK ZTO EXPRESS-SW 0.5
2269 HK WUXI BIO 0.4
2282 HK MGM CHINA 0.5
2313 HK SHENZHOU INTL 0.6
2318 HK PING AN 0.8
2319 HK MENGNIU DAIRY 0.8
2328 HK PICC P&C 0.65
2331 HK LI NING 0.4
2382 HK SUNNY OPTICAL 0.6
2388 HK BOC HONG KONG 0.8
2601 HK CPIC 0.7
2618 HK JD LOGISTICS 0.6
2628 HK CHINA LIFE 0.8
2638 HK HKELECTRIC-SS 0.8
2688 HK ENN ENERGY 0.7
2799 HK CHINA HUARONG 0.2
2800 HK TRACKER FUND 0.8
2822 HK CSOP A50 ETF 0.8
2823 HK ISHARES A50 0.8
2828 HK HSCEI ETF 0.8
2833 HK HS HSI ETF 0.65
2839 HK CAM MSCI A50 0.8
2963 HK HONGGUANG L-5K 0.6
3032 HK HSTECH ETF 0.7
3033 HK CSOP HS TECH 0.7
3067 HK ISHARESHSTECH 0.7
3088 HK CAM HS TECH 0.7
3188 HK CAM CSI300 0.8
3320 HK CHINARES PHARMA 0.6
3323 HK CNBM 0.65
3380 HK LOGAN GROUP 0.3
3690 HK MEITUAN-W 0.7
3692 HK HANSOH PHARMA 0.5
3799 HK DALI FOODS 0.3
3808 HK SINOTRUK 0.6
3968 HK CM BANK 0.8
3988 HK BANK OF CHINA 0.8
4239 HK HKGB IBOND 2311 0.97
4246 HK HKGB IBOND 2406 0.97
4252 HK HKGB RGB 2505 0.97
6030 HK CITIC SEC 0.7
6098 HK CG SERVICES 0.4
6186 HK CHINA FEIHE 0.3
6618 HK JD HEALTH 0.7
6688 HK ANT GROUP (SUSPENDED) 1
6808 HK SUNART RETAIL 0.6
6823 HK HKT-SS 0.7
6837 HK HAITONG SEC 0.7
6862 HK HAIDILAO 0.5
6969 HK SMOORE INTL 0.2
9618 HK JD-SW 0.8
9626 HK BILIBILI-SW 0.6
9633 HK NONGFU SPRING 0.6
9888 HK BIDU-SW 0.7
9988 HK BABA-SW 0.8
9999 HK NTES-S 0.7
44025 HK HKGB SBOND 2312 0.97
44064 HK HKGB SBOND 2408 0.97
82828 HK HSCEI ETF-R 0.7
82833 HK HS HSI ETF-R 0.6
600000 CN SHANGHAI PUDONG DEVELOPMENT BANK 0.7
600016 CN CHINA MINSHENG BANKING 0.6
600028 CN CHINA PETROLEUM AND CHEMICAL 0.7
600030 CN CITIC SECURITIES 0.6
600036 CN CHINA MERCHANTS BANK 0.7
600048 CN POLY DEVELOPMENTS AND HOLDINGS GROUP 0.5
600104 CN SAIC MOTOR 0.6
600276 CN JIANGSU HENGRUI MEDICINE 0.5
600519 CN KWEICHOW MOUTAI 0.7
600585 CN ANHUI CONCH CEMENT 0.6
601088 CN CHINA SHENHUA ENERGY 0.7
601166 CN INDUSTRIAL BANK 0.7
601288 CN AGRICULTURAL BANK OF CHINA 0.6
601318 CN PING AN INSURANCE 0.8
601328 CN BANK OF COMMUNICATIONS 0.7
601398 CN INDUSTRIAL AND COMMERCIAL BANK OF CHINA 0.8
601628 CN CHINA LIFE INSURANCE 0.7
601668 CN CHINA STATE CONSTRUCTION ENGINEERING 0.6
601857 CN PETROCHINA 0.6
601988 CN BANK OF CHINA 0.7

Please refer to footnote 1 and footnote 2.

 

Footnote 1: The above grade-based interest rate will be based on the effective rate which is subject to the latest Hong Kong Dollar Prime (P) rate of Standard Chartered Bank.

Footnote 2:：The flat interest rate for non grade-based margin account is P(HKD Prime rate of Standard Chartered Bank) + 3%。

*The margin ratio of stock is for reference only, which is subjected to change as determined by both the market and specific company factor. The company deserves the right to provide a different ratio to client based on his account situation.

Clients must submit supporting documentation to the Company to confirm that the depository payment is from his/her own bank account. Acceptable documentation include, but is not limited to, bank statements, cheque images, and online banking screenshots. The deposit will be credited to the Client account on the day that supporting documentation is provided. Until the supporting documentation is submitted, the deposit will not be treated as “credited”. The daily cut-off time for collecting the supporting documentation is 4:00 p.m., any supporting documentation received after 4:00 p.m. will be deemed to be received on next working day. Clients will be liable for any relevant interest, commission, fines and other charges incurred as a result of not being ”credited”.

Examples

 

Interest is calculated on outstanding of clients' account and on daily basis. Example of Interest Calculation:

 

 

Case 1:
Outstanding < Grade 1 Stock Margin Value
Stock Market Value Margin Ratio Margin Value Total Outstanding
Grade 1 Stock HK$ 125,000 0.8 HK$ 100,000 HK$ 80,000

 

case 1


 

 

Case 2:
Outstanding>Grade 1 Stock Margin Value
Stock Market Value Margin Ratio Margin Value Total Outstanding
Grade 1 Stock HK$ 162,500 0.8 HK$ 130,000 HK$ 150,000
Other Stocks HK$ 120,000 0.5 HK$ 60,000

 

case 2

 

Footnote 1: The above grade-based interest rate will be based on the effective rate which is subject to the latest Hong Kong Dollar Prime (P) rate of Standard Chartered Bank.

Footnote 2:：The flat interest rate for non grade-based margin account is P(HKD Prime rate of Standard Chartered Bank) + 3%。

*The margin ratio of stock is for reference only, which is subjected to change as determined by both the market and specific company factor. The company deserves the right to provide a different ratio to client based on his account situation.

Clients must submit supporting documentation to the Company to confirm that the depository payment is from his/her own bank account. Acceptable documentation include, but is not limited to, bank statements, cheque images, and online banking screenshots. The deposit will be credited to the Client account on the day that supporting documentation is provided. Until the supporting documentation is submitted, the deposit will not be treated as “credited”. The daily cut-off time for collecting the supporting documentation is 4:00 p.m., any supporting documentation received after 4:00 p.m. will be deemed to be received on next working day. Clients will be liable for any relevant interest, commission, fines and other charges incurred as a result of not being ”credited”.

FAQ

1. What is Grade-based margin interest plan?

Please refer to the introduction page of Grade-based Margin Interest Plan.
The grade- based margin interest rate is adjusted and based on the Prime Rate of Standard Chartered Bank from time to time. For CNY and USD Margin Interest, please click here

2. How to apply Grade-based margin interest plan instead of standard rate margin financing

Grade-based margin interest plan applies to all new margin accounts. Existing margin clients could apply the plan through their account executives or Customer Service Department, and do confirmation via POEMS pop-message after the application is approved.

2. The detail of Grade-based margin interest plan

Please refer to the introduction page of Grade-based Margin Interest Plan.
The grade-based margin interest rate is adjusted and based on the Prime Rate of Standard Chartered Bank from time to time.

3. Terms and Conditions of Grade-based Margin Interest Plan：

    1. The promotion applies to all new margin client.
    2. For blue chips / Grade 1 stock list，the annual interest rate is 1.5% (P-3.75%) for the first HKD 30,000 financing.
    3. The annual interest rate for financing HKD 30,000 above is 4.75% (P-0.5%).

 

Click here for details of Grade-based Margin Interest Plan

*The grade-based margin interest rate is adjusted and is based on the HKD Prime Rate of Standard Chartered Bank from time to time.

*The margin ratio of stock is for reference only, which is subjected to change as determined by both the market and specific company factor. The company deserves the right to provide a different ratio to client based on his account situation.

Investment involves risks. Please refer to the Risk Disclosures Statement on our website at www.poems.com.hk.
You may contact our Customer Service Department at cs@phillip.com.hk or 2277 6555 to opt out of receiving marketing materials.

4. How to apply Grade-based margin interest plan instead of standard rate margin financing?

Grade-based margin interest plan applies to all new margin accounts. Existing margin clients could apply the plan through their account executives or Customer Service Department, and do confirmation via POEMS pop-message after the application is approved.

5. How to reduce cost with Graded-based Margin Intesterst Plan?

Please refer to Example

6. How does a client know that the application of Grade-based margin interest plan is approved?

Client will receive confirmation pop-up message while log in in online trading platform POEMS if their application of Grade-based margin interest plan is approved. Please contact Customer Service Department if there is no confirmation.

7. How to check Grade 1 stock list?

Please check Grade 1 Stock list in POEMS website and it would be updated from time to time.

8. How to presume accrual interest before choosing any margin financing plan?

Please check accrual interest with your portfolio details by utilizing the calculator provided.

9. If the stock held by the client is suspended, how would the stock value be calculated?

If the stock is suspended, the stock will have no market value. There would be a margin call for deposit.

10. If outstanding excess loan limit, is there any margin call?

No, margin call would occur only if outstanding excess margin value.

11.What kind of client is suitable for Grade-based margin interest plan ？

The plan is suitable for client holding blue-chips portfolio and one's Phillip account with no margin call.

12. Do both parties of joint account need to sign on opt-in form for joining Grade-based margin interest plan?

Yes, both parties of joint account need to sign on opt-in form for joining Grade-based margin interest plan.

13. Could authorized person represent their own client to sign opt-in form to go for Grade-based margin interest plan?

No, the opt-in form must be signed by client.

14. Would Grade-based margin interest plan affect the purchase power of client?

No.

15. How to check the blend interest rate of one's account on the day?

Interest rate would be shown in the end of the month in monthly e-statement.

16. What rate of overdraft (Financing without margin value) is under the Graded-based Margin Interest Plan?

13.75% (P+8.5%)
Footnote 1: The above grade-based interest rate will be based on the effective rate which is subject to the latest Hong Kong Dollar Prime (P) rate of Standard Chartered Bank.
Footnote 2: The flat interest rate for non grade-based margin account is P(HKD Prime rate of Standard Chartered Bank) + 3%.

17.Page of Graded-based Margin Interest Plan

Footnote 1: The above grade-based interest rate will be based on the effective rate which is subject to the latest Hong Kong Dollar Prime (P) rate of Standard Chartered Bank.

Footnote 2:：The flat interest rate for non grade-based margin account is P(HKD Prime rate of Standard Chartered Bank) + 3%。

*The margin ratio of stock is for reference only, which is subjected to change as determined by both the market and specific company factor. The company deserves the right to provide a different ratio to client based on his account situation.

Clients must submit supporting documentation to the Company to confirm that the depository payment is from his/her own bank account. Acceptable documentation include, but is not limited to, bank statements, cheque images, and online banking screenshots. The deposit will be credited to the Client account on the day that supporting documentation is provided. Until the supporting documentation is submitted, the deposit will not be treated as “credited”. The daily cut-off time for collecting the supporting documentation is 4:00 p.m., any supporting documentation received after 4:00 p.m. will be deemed to be received on next working day. Clients will be liable for any relevant interest, commission, fines and other charges incurred as a result of not being ”credited”.

"

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Graded-Based Margin Interest Plan before 19 April 2022:

case 2

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