US Stocks Monthly Investment Plan

Q1. How can I apply for the US Stocks Monthly Investment Plan (“US-SMIP”) service?

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

Q2. Are there any requirements for the US-SMIP service?

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

Q3. What is the minimum investment amount for the US-SMIP?

The minimum monthly investment amount is US$100 for each US stock for the US-SMIP. Extra contribution must be in integral multiples of US$100.

Q4. When will the investment amount of the US-SMIP be floated and purchase instruction be executed?

The monthly investment amount of US-SMIP will be floated from your designated BEA settlement account on 15th day of each month. We will execute purchase instruction on behalf of all customers who have joined the US-SMIP at any time after 12:00 a.m. (HKT) on the next trading day after the day of floating the monthly investment amount. If the 15th day of the month is not a trading day for US market, the floating of monthly investment amount and purchase instruction will be postponed to next trading day for execution.

Q5. Can I set up more than one US-SMIP with purchasing same stock under my securities account?

No. You cannot set up more than one US-SMIP with purchasing same stock under your securities account. However, you can amend your monthly investment amount of the selected stock in accordance with your investment strategy.

Q6. How is the purchase price of a stock under the US-SMIP be determined?

The purchase price of a US stock of US-SMIP is determined by the average execution price of stocks purchased by BEA on behalf of all customers who have joined the US-SMIP to purchase that stock in any particular month. For example, if the Bank purchases 1,000 shares of stock XYZ at US$200 and another 500 shares at US$203, the average execution price of stock XYZ would be HKD201.^

^            [(US$200 X 1,000) + (US$203 X 500)] ÷ (1,000 + 500)

              = (US$200,000+ US$101,500) ÷ 1,500

              = US$201

Q7. How many shares/units of the selected stock/ETF will be allocated to customers?

The monthly investment amount after deducted the handling fee will be used to purchase the stock(s)/ETF(s) under US-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 BEA settlement account on the next trading day after the Purchase Date.

Q8. How can I check the transaction details of my US-SMIP?

You can check the transaction details of your US-SMIP by clicking “Accounts” and then “Transaction History” under BEA Online. In addition, you will receive a contract note with details of the average execution price and execution quantity after the Purchase Date when your US-SMIP is being executed. Besides, you will also receive a monthly statement listing the details of the stocks maintained in your securities account as well as their market value.

Q9. How can I amend or terminate my US-SMIP?

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

Q10. Am I required to exchange US currency for the application of US-SMIP?

Yes, please ensure there is sufficient USD maintained in the securities settlement account for floating the monthly investment amount and executing the purchase transaction.

Q11. What happens if I do not have sufficient USD funds in my designated AIO USD savings account on the Hold Fund Date in a particular month after I have joined the US-SMIP?

BEA will not execute the purchase instruction for any of your US-SMIP for that month if the required monthly investment amount cannot be floated from your designated AIO USD savings account on the Hold Fund Date successfully. Besides, please note that no reminder will be sent to you before the monthly investment amount is floated.

Q12. Under what circumstances would the Bank terminate my US-SMIP?

If the Bank is unable to float the required monthly investment amount from your designated securities settlement account due to insufficient balance on the Hold Fund Date for 3 consecutive months, your US-SMIP will be terminated automatically without further notice.

Q13. How can I handle my stock purchased through US-SMIP after the termination of my US-SMIP?

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

Q14. What will happen if my selected stock is removed from the eligible stocks list of US-SMIP?

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

Q15. Can I sell the stock purchased through the US-SMIP at any time?

Yes, all stocks purchased through the US-SMIP will be kept in your securities sub-account, and you can sell these stocks as you wish via suitable channels.

Q16. Can US-SMIP customers enjoy the same rights as normal shareholders?

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

Q17. Which stocks are generally included in the eligible stocks list of US-SMIP?

Constituent stocks of following indices:	The following Exchange Traded Funds (ETFs):
i) Dow Jones Industrial Average Index (DJIA)	i) S&P 500 ETF (SPY)
ii) NASDAQ 100 (NASDAQ)	ii) Invesco QQQ Trust, Series 1 (QQQ)
iii) Standard & Poor’s 500 Index (S&P 500)	iii) SPDR Dow Jones Industrial Average ETF (DIA)
	iv) Fidelity Nasdaq Composite Index ETF (ONEQ)

Q18. What happens if the trading of an eligible stock of US-SMIP is suspended on the Purchase Date?

If the trading of an eligible stock of US-SMIP is suspended for whole day on Purchase Date, all customers’ instructions for purchasing the stock under US-SMIP will not be executed for that month, and the floated monthly investment amount for that stock will be released on next business day. However, if the trading of the stock is resumed before the purchase instruction execution time at around 12:00 a.m. (HKT), instructions for purchasing the stock may still be executed wholly or partially. Please refer to the contract note or contact our customer service representative for further details.

Q19. What happens if the US stock market is closed on the Purchase Date?

All purchase instructions on Purchase Date of US-SMIP will be postponed to next trading day for execution.

Q20. What happens if the monthly investment amount is less than the amount for purchasing one share of the stock I have selected under US-SMIP?

There is a minimum of buying one share for stock under US-SMIP. If the monthly investment amount after deducted the handling fee is not sufficient to buy one share of the stock you have selected,, the purchase instruction for the stock in that month will not be executed.

Q21. What are the charges of US-SMIP after the end of the US-SMIP Promotional Period?

Standard fees and charges apply after the promotional period of the US-SMIP. Please refer to our Bank Charges tables for more details.

Disclaimer:

Please be aware that the Bank is not authorised or licensed to provide the services and/or products in other jurisdictions. We cannot guarantee that the services and products are authorised to be offered in any other jurisdiction.