Q1. How can I subscribe to the Stocks Monthly Investment Plan (“SMIP”)?

You can apply for the SMIP service at any BEA branch. Once we’ve received your application, the SMIP service will be effective in the following month.

Q2. Are there any requirements for the SMIP service?

As long as you hold a BEA All-in-one (“AIO”) securities sub-account, you are eligible for the SMIP service.

Q3. Can I set up more than one SMIP with the same stock under my AIO securities sub-account?

No. You cannot select the same stock for more than one SMIP under your AIO securities sub-account if you have already set up a monthly investment plan or have a set-up/amend instruction pending for the selected stock. However, you can amend your monthly investment amount of the selected stock according to your investment strategy.

Q4. When will the Bank execute SMIP instructions for customers?

Under normal market conditions, the Bank will execute a purchase instruction on behalf of a customer at any time after 11:00 a.m. on the Purchase Date.

Q5. How are the purchase prices of stocks under the SMIP determined?

The purchase price of a stock is determined by the average execution price of stocks purchased by BEA on behalf of all customers who have joined the SMIP to purchase that stock in any particular month. These purchase transactions may include board lot or/and odd lot orders executed at different prices. For example, if the Bank purchases 1,000 shares of stock A at HKD20.00 and another 500 shares at HKD20.30, the average execution price of stock A would be HKD20.10.^

^  [(HKD20.00 X 1000) + (HKD20.30 X 500)] ÷ (1000 + 500)
= (HKD20,000+HKD10,150) ÷ 1500
= HKD20.10

Q6. How many shares/units of the selected stock/ETF will be allocated to customers?

The net investment amount after deducting the handling fee will be used to purchase the stock(s)/ETF(s) under the SMIP. The number of shares/units allocated to each customer will be rounded down to the nearest integral number, and the actual investment amount, including the handling fee, will be debited from the customer’s designated AIO settlement account on the second trading day after the Purchase Date.

Q7. How can I check the transaction details of my SMIP?

You can check the transaction details of your SMIP by clicking on “Accounts” and then “Activities” under your BEA Cyberbanking account. You will receive a contract note with details of the average executed price and executed quantity after the Purchase Date when your SMIP was executed. You will also receive a monthly bank account statement listing details of the stocks in your securities account as well as their market value.

Q8. How can I amend or terminate my SMIP?

You can amend or terminate your SMIP at any BEA branch with no charge. All amendment or termination instructions will be effective in the following month after the instruction is received.

Q9.What happens if I do not have sufficient funds in my designated AIO settlement account on the Hold Fund Date in a particular month?

BEA will not execute the purchase instructions for any of your Plans for that month if the required amounts cannot be floated from your designated AIO settlement account on the Hold Fund Date. Please note that no reminder will be sent to you before the monthly investment amount is floated.

Q10. Under what circumstances would the Bank terminate my SMIP?

If the Bank is unable to float the required amounts from the designated AIO settlement account due to insufficient balance on the Hold Fund Date for 3 consecutive months, the SMIP will be terminated automatically without further notice.

Q11. How can I handle my stock after the termination of my SMIP?

All stocks purchased through SMIP will be kept in your AIO securities sub-account, and you can sell or keep holding these as you wish. All stocks held in your AIO securities sub-account are subject to the standard charges related to securities services. Please refer to our Bank Charges tables for details.

Q12. What will happen if the selected stock is removed from the eligible stocks list under my SMIP?

BEA regularly reviews the list of eligible stocks under the SMIP. If the stock you have selected under SMIP is subsequently removed from the eligible stocks list, we will send you a notice in advance of the termination arrangement.

Q13. Can I sell stocks under the SMIP at any time?

Yes, all stocks purchased through the SMIP will be kept in your AIO securities sub-account, and you can sell these as you wish. Quantities of stocks in board lots can be sold through Cyberbanking, Automated Phone Services, the BEA Securities Services Mobile App, or our Manned Investment Hotline. Quantities of stocks in odd lots can be sold through our Manned Investment Hotline.

Q14. How can I know that my order has been received by BEA’s Internet Trading System?

When you have successfully submitted an order through our Internet Trading System, a message containing the order details will be sent to you by email immediately. You will subsequently receive an email notification once the order has been executed, cancelled, or rejected.

Q15. Can SMIP customers enjoy the same rights as normal shareholders?

Yes. SMIP customers enjoy the same rights as other shareholders, including but not limited to corporate action events, such as dividend payments and bonus shares.

Q16. What happens if trading is suspended for an eligible stock under SMIP on the Purchase Date?

If trading of an eligible stock under SMIP is suspended for the whole day, all customers’ instructions for purchasing the stock under SMIP will be suspended for the remainder of that month, and the amount will be released to the customers’ designated AIO settlement accounts on the same day. However, if trading of the stock is suspended after the normal instruction execution time which starts at 11:00 a.m., instructions for purchasing the stock may still be executed wholly or partially before the trading suspension. Please refer to the contract note or contact our customer service representative for further details.

On the other hand, if the trading suspension of the stock has occurred prior to and till the beginning of the afternoon session at 1 p.m., all instructions for purchasing the stock under SMIP will not be executed even if the stock resumes trading later.

Q17. What happens if the stock market is closed on the Purchase Date due to bad weather conditions?

All instructions under the SMIP will be postponed until the next trading day.

 

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.

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 or the provision of investment services.