You need to have a cash/ Margin account (main account) and open a Share Mortgage account (sub-account) for joining this scheme.

2. The sub-account is a stock margin account. You need to use a sub-account to buy stocks through margin financing.

You should have at least 30% of the stock’s market value together with the 1% handling fee and charges from HKEx as initial deposit in master account. You could than place purchase order with your account executive to purchase stock on list (or any other stock that is approved by the company. The company will borrow up to 70% of the stock’s market value to customer for purchase the stock.

Yes, you have to purchase one lot stock and total amount should not least than HK$100,000.

Could call us for further discussion if you want to purchase stock outside the stock list. However, there may be higher initial deposit requirement or higher interest rate will be charged.

Yes. There will one-off Handling fee which is 1% market value of the stock purchase. It will deduct from your main account.

Client could choose 12 or 24 months to repay the principal and interest.
The effective day is the contract is 2 days after the purchasing day, interest will be counted according to the rate set by the company.
The first repayment date is the 15th day of the next month after the contact has been open, the repayment amount for the first month will calculate in proportion to the actual lending date.
The repayment date is 15th of each month, the repayment amount will transfer from Master Account to sub-account automatically. If the repayment date is not a trading day, the repayment day will change to the previous trading day,

You could terminate the contract any time by selling all or part of the stock in the market until the fund received after the selling proceeds is enough to cover the outstanding principal and interest accrued.
You could also complete the Termination Form (Cash Settlement) and return the original copy to your account executive. The company will inform you the loan outstanding and accrued interest within 5 working day. You should deposit the required amount into you main account, we will transfer the fund to sub-account to cover the outstanding and terminate the contract.

Before the contract end, the selling proceeds is the outstanding less the exchange fee and the accrual interest.

Interest will be calculated by multiplying the number of day in arrears of the month and the outstanding at the beginning of the month with the agreed interest rate.

No.

No. Please notes that beside the initial deposit, the 「initial investment amount」 stated in the contract also include handing fee, stamp duty, transaction levy, transaction fee, CCASS fee and Stock Custody Fee etc..

Yes, if the value of net assets (stock’s market value – outstanding) in the contract is less the 20% of the stock’s market value, you may request to deposit extra fund into the main account (to maintain a deposit of 30% of the stock market value).

The company will reserve the right to transfer the money from master account to sub-account or force sell the stock in your account to fulfill the margin requirement. The stock in sub-account will be force sell first. If the process is still not enough to cover the margin requirement, the company may also force sell the stock in your master account in order to fulfill the margin requirement.

You should deposit the all the funds required for the right issue to the main account, otherwise, the company will not exercise the rights on your behalf.

You must deposit funds required for the rights issue in the master account. The company will not exercise the rights on your behalf.

You should have a cash/ margin account (main account) and open a sub-account in order to join the scheme.

There should be no margin call in master account. The stock in master account will than transfer to sub-account for open contract. The stock should be in the designated stock list (or approved by the company). The company will than provide up to 70% finance to the client. The funds will credit to client’s main account and the repayment schedule will send to client’s register e-mail address within 5 working day.

Yes, you have to re-mortgage at least one lot of stock with value no less the HK$100,000 of the same stock.

Yes.

The repayment schedule is same as normal Share Mortgage plan. Client should repay interest and principal every month within 12 or 24 months. The effective day of the contract is the date with the stock is transfer from master account. The company will start to calculate the interest from that date using the specific rate set by the company.
The repay amount of the first month will be in proportion of the leading days in the first month. After that, the 15th of each month is the repayment date, the repayment amount will transfer from master account to sub-account automatically. If the repayment day is not a trading date, the repayment amount will change to the previous day,

The arrangement on early sell, early repayment, margin call and force sell is the same.

You need to have a cash / margin account ("main account") together with a Share Mortgage account (sub-account) and a Share Mortgage Covered call account (Option sub-account).

Option sub-account is use to establish Covered Call Options strategy. You should hold the underlying Securities of the Call Option in you sub-account. You could not trade Put Option and Uncovered Call Option in Option sub-account.

You could have sufficient quantity of stock in the sub-account. You could than call your Account Executive to open the open Covered Call Option contract with the stock for you.

This is not allow. If you does not have sufficient stock in your sub-account, the short Call Option will become Uncovered Call Option..

If there are still unsettle contract in Option sub-account, except for repay the loan and interest, you could not withdraw the premium and the cash balance to your other accounts in Phillip. If you choose to use the premium and cash to repay the loan, it will transfer to main account for the loan and interest repayment of the Share Mortgage. Please note that the premium receive could only use to repay the outstanding of contract for the same stock.
If there was no unsettled contract in the Option sub-account, you could chose to transfer the cash balance to main account for any purpose.

The stock will transfer from sub-account to Option sub-account the second trading day after the Covered Call Option contract has been open.

The company will consolidate fund status of both main account and sub-account before decide whether need to issue margin call. If the net asset (stock market value – outstanding) of any Share Mortgage contract is below 20% of the stock market value, you may request to deposit extra fund into main account (to maintain the margin level to 30% of the stock market value). The market value of the stock in Option sub-account will also be included in the margin calculation. If you failed to deposit the fund to settle the margin call on time, the company reserve the right to force sell the stock in sub account or Option sub account.

Yes, if the net assets value of the Option sub-account is below 30% of the stock market value, the company reserve the right to exercise force sell for Share Mortgage account or Option sub-account.

You could buy the related call options through your Account Executive to close the short put position any time.

If the Covered Call Option expires, you could freely choose to transfer back the designated stock to sub-account, or Short Call Option again and use the stock to establish Covered Call strategy.

If the Short Call Option was exercised, the fund received will transfer from Option Sub-account to sub-account two days after the exercise day (T+2). The Fund will use to repay the outstanding and interest of the Share Mortgage Contract. If the fund receive could repay all the outstanding and interest of the contract, you may need to repay the remaining balance with the contract period. A new repayment schedule will issue to you. If the was excess fund after repay the outstanding and interest, it will deposit back to your main account.

No. Your Covered Call Option will become non-covered call Option. It that situation, the company will force close the contract on the second day. As need to pay premium to force close the contract, the company will deduct the amount in sub account to cover the cost for force close.