“Monthly Stocks Savings Plan” is a flexible and convenient investment tool, enabling you to invest in a number of selected stocks with a monthly contribution amount of as low as HK$1,000. By leveraging on the advantage of “Dollar Cost Averaging”, you can be freed from the short term volatility of the stock market while balancing overall investment effectiveness.
According to your own preference, you can invest in selected stocks provided by Chiyu Banking Corporation Ltd. The minimum monthly contribution is as low as HK$1,000 (A maximum of two stocks can be invested with a monthly contribution amount of HK$1,000. For each additional stock, any additional contribution may be made in integral multiples of HK$500).
For example:
| Maximum Number of Stock(s) Invested |
Minimum Monthly Investment Amount |
| 2 | HK$1,000 |
| 3 | HK$1,500 |
| 4 | HK$2,000 |
A maximum of ten stocks can be selected in each plan. A handling fee equivalent to 0.25% of the total monthly contribution amount is charged for each plan. And the minimum charge is HK$50 per month (including brokerage fee, stamp duty, transaction levy and transaction charge). You can also enjoy waivers on safe custody and collection fees of shareholder entitlements (e.g. dividend) to save more.
You can sell any stocks maintained in the plan at market price (even if the number of shares is less than one lot) to enjoy a higher return. What's more, you can adjust the monthly contribution amount or the stock portfolio according to your investment needs without handling charges, grasping every investment opportunity with greater flexibility.
The advantage of “Monthly Stocks Savings Plan” is based on the concept of “Dollar Cost Averaging”. You can acquire more shares when the stock price goes down and less shares when the stock price goes up. With this long term investment strategy, you do not have to worry about short term market fluctuations, but with more balanced overall investment effectiveness.
Example (For reference only)
| Contribution Month | Contribution Amount (HK$) | Contribution Amount After Deducting Transaction Fee (HK$) | Purchase Price Per Share (HK$) | Number of Shares Bought | Net Contribution Amount (HK$) |
| January | 1,000 | 950 | 15.38 | 61 | 938.18 |
| February | 1,000 | 950 | 17.24 | 55 | 948.20 |
| March | 1,000 | 950 | 16.70 | 56 | 935.20 |
| April | 1,000 | 950 | 17.50 | 54 | 945.00 |
| Total 226 |
3,766.58 |
Average cost per unit (HK$) = Net contribution amount ÷ Total units bought
= 3,766.58÷226
= 16.67
Important Notes
The below risk disclosure statements cannot disclose all the risks involved. You should undertake your own research and study before your trade or invest. You should carefully consider whether trading or investment is suitable in light of your own financial situation, investment experience, investment objectives, risk tolerance and ability to understand the nature and risks of the relevant product. You are advised to seek independent financial and professional advice before you trade or invest. You should seek independent professional advice if you are uncertain of or have not understood any aspect of the following risk disclosure statements or the nature and risks involved in trading or investment.
Risk of Securities Trading
Monthly Stocks Savings Plan is not equivalent to, nor should it be treated as a substitute for, time deposit. The prices of securities fluctuate, sometimes dramatically. The price of a security may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling securities.
You are reminded to understand the relevant details, charges and important notes before investing in Shanghai A shares or Shenzhen A shares. For details, please read the “Important Notice of Trading China A Shares and A Shares Margin Trading via Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect” in Chiyu Bank’s website or the branch staff of Chiyu Bank. Details
Risk Disclosure of Trading A Shares via Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect
Not protected by Investor Compensation Fund: Investors should note that any SH Northbound Trading or SZ Northbound Trading under Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect will not be covered by Hong Kong’s Investor Compensation Fund. Also, China Securities Investor Protection Fund will not protect any SH Northbound Trading and SZ Northbound Trading as well.
Quotas used up: When the daily quota is used up, acceptance of the corresponding buy orders will also be immediately suspended and no further buy orders will be accepted for the remainder of the day. Buy orders which have been accepted will not be affected by the using up of the daily quota, while sell orders will be continued to be accepted.
Trading day difference: As mentioned above, Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect will only operate on days when both markets are open for trading and when banks in both markets are open on the corresponding settlement days. So, it is possible that there are occasions when it is a normal trading day for the Mainland China market but Hong Kong investors cannot carry out any A-share trading. Investors should take note of the days Shanghai-Hong Kong Stock. Connect or Shenzhen-Hong Kong Stock Connect is open for business and decide according to their own risk tolerance capability whether or not to take on the risk of price fluctuations in A-shares during the time when Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect is not trading.
Restrictions on selling imposed by front-end monitoring: For investors who usually keep their A-shares outside of their brokers, if they want to sell certain A-shares they hold, they must transfer those A-shares to the respective accounts of their brokers before the market opens on the day of selling (T day). If they fail to meet this deadline, they will not be able to sell those A-shares on T day.
The recalling of eligible stocks: When a stock is recalled from the scope of eligible stocks for trading via Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect for above-mentioned reasons, the stock can only be sold but restricted from being bought. This may affect the investment portfolio or strategies of investors. Investors should therefore pay close attention to the list of eligible stocks as provided and renewed from time to time by both Exchanges.
Risks of client assets received or held outside Hong Kong: Client assets received or held by the licensed or registered person outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the Securities and Futures Ordinance (Cap.571) and the rules made thereunder. Consequently, such client assets may not enjoy the same protection as that conferred on client assets received or held in Hong Kong.
Conversion Limitation Risk of RMB (Only applicable to Individual Customers)
RMB investments are subject to exchange rate fluctuations which may provide both opportunities and risks. The fluctuation in the exchange rate of RMB may result in losses in the event that the customer converts RMB into HKD or other foreign currencies. RMB is currently not fully freely convertible. Individual customers can be offered CNH rate to conduct conversion of RMB through bank accounts and may occasionally not be able to do so fully or immediately, for which it is subject to the RMB position of the banks and their commercial decisions at that moment. Customers should consider and understand the possible impact on their liquidity of RMB funds in advance.
Conversion Limitation Risk of RMB (Only applicable to Corporate Customers)
RMB investments are subject to exchange rate fluctuations which may provide both opportunities and risks. The fluctuation in the exchange rate of RMB may result in losses in the event that the customer converts RMB into HKD or other foreign currencies. RMB is currently not fully freely convertible. Corporate customers that intend to conduct conversion of RMB through banks may occasionally not be able to do so fully or immediately, for which it is subject to the RMB position of the banks and their commercial decisions at that moment. Customers should consider and understand the possible impact on their liquidity of RMB funds in advance.
