How the SMIP Works
Example (for illustration only):
This customer has applied for the SMIP service with a monthly investment amount of HK$3,000. The investment amount after deduction of the transaction fee (0.25% of the monthly investment amount per stock or HK$30 per stock, whichever is higher) will be used to purchase stocks. The number of shares/units allocated to each customer will be rounded down to the nearest whole number of shares. The actual investment amount used for purchasing stock, including any transaction fee, will be debited from the customer’s designated BEA settlement account on the second trading day after the Purchase Date.
|
Month |
Monthly (HKD) (a) |
Actual (HKD) (b) |
Purchase (HKD) (c) |
Number of (d) |
Actual (HKD) (c) x (d) |
Amount (HKD) (a-b) + (c x d) |
|
Jan |
3,000 |
2,970 |
30.50 |
97 |
2,958.50 |
2,988.50 |
|
Feb |
3,000 |
2,970 |
31.00 |
95 |
2,945.00 |
2,975.00 |
|
Mar |
3,000 |
2,970 |
29.50 |
100 |
2,950.00 |
2,980.00 |
|
Apr |
3,000 |
2,970 |
32.00 |
92 |
2,944.00 |
2,974.00 |
|
Total |
12,000 |
11,880 |
/ |
384 |
11,797.50 |
11,917.50 |
|
Average Price per share for the stocks purchased2 from Jan to Apr (HKD) |
31.04 |
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|
Minimum Monthly Investment Amount |
HKD1,000 for each stock |
|
Extra Contribution |
In integral multiples of HKD1,000 |
|
Hold Fund Date3 |
The 8th of each month |
|
Purchase Date4 |
The second trading day after the Hold Fund Date |
|
Investment Instruction Amendment (e.g. Stock / Amount) |
Effective in the following month after receiving client’s written instruction |
|
Plan Termination5 |
Effective in the following month after receiving client’s written instruction |
|
Transaction Fee |
0.25% of the monthly investment amount per stock or minimum HKD30.00 per stock, whichever is higher (inclusive of but not limited to brokerage fee, stamp duty, trading fee and transaction levy, etc). |
|
Custody Fee6 |
Waived |
|
Cash Dividend Collection Fee6 |
0.5% (min HKD30.00, maximum HKD2,500) of cash dividend collected |
|
Monthly Investment Amount or Investment Portfolio Readjustment |
Waived |
|
Plan Termination |
Waived |
Notes:
1. Actual Amount for stock purchase = Customer's monthly investment amount – Handling fee (0.25% of monthly investment amount per stock or HKD30 per stock, whichever is higher)
2. Average Price per share = Total amount to be debited ÷ Total number of shares purchased
= HKD11,917.50 ÷ 384
= HKD31.04
3. Under normal circumstances, the Hold Fund Date will be on the 8th of each month. If the 8th of the month is not a trading day, or the trading is closed due to bad weather conditions, the Hold Fund Date will be postponed to the next trading day.
4. Normally, the purchase instruction will be executed after 11:00 a.m. on the Purchase Date.
5. The SMIP will be terminated automatically without further notice if no payment is made for three consecutive months.
6. All stocks maintained in the All-in-one securities sub-account are subject to the standard charges related to securities services, including but not limited to the nominee services charge, etc., irrespective of whether the shares are purchased through the Plan.
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Important Notice
Investment involves risks. The prices of securities may move up or down, and may become valueless. There is an inherent risk that you may incur losses rather than gain profit as a result of buying and selling securities.It is possible that you may lose some or all of your investment as a result of conducting securities transaction. Information contained herein is for reference only. It does not constitute any offer, solicitation, or recommendation for the purchase or sale of any investment products.
