Grade Based Margin

Introduction

 

Interest rate and the interest calculation in Grade-Based Margin financing is based on the stock ranking. There are 3 layers of outstanding based on stock quality and margin value* in Grade-Based Margin financing.

Higher proportion of blue chips in securities portfolio , lower interest rate it is. It is as low as 2.75% ! The calculation of interest rate is as follows:

 

int-table

 

代號 Stock Code 名稱 Stock Name 按揭比率 Margin Ratio 代號 Stock Code 名稱 Stock Name 按揭比率 Margin Ratio
1 長和 / CKH HOLDINGS 0.80 1109 華潤置地 / CHINA RES LAND 0.80
2 中電控股 / CLP HOLDINGS 0.85 1113 長實集團 / CK ASSET 0.80
3 香港中華煤氣 / HK and China Gas 0.85 1177 中國生物製藥 / SINO BIOPHARM 0.60
5 匯豐控股 / HSBC HOLDING 0.80 1211 比亞迪股份 / BYD COMPANY 0.60
6 電能實業 / POWER ASSETS 0.85 1288 農業銀行 / ABC 0.80
11 恒生銀行 / HANG SENG BANK 0.85 1299 友邦保險 / AIA 0.80
12 恒基地產 / HENDERSON LAND 0.80 1336 新華保險 / NCI 0.65
16 新鴻基地產 / SHK PPT 0.80 1339 中國人民保險集團 / PICC GROUP 0.70
17 新世界發展 / NEW WORLD DEV 0.80 1359 中國信達 / CHINA CINDA 0.70
19 太古股份公司A/ SWIRE PACIFIC A 0.80 1398 工商銀行 / ICBC 0.80
27 銀河娛樂 / GALAXY ENT 0.80 1658 郵儲銀行 / PSBC 0.70
66 港鐵公司 / MTR CORPORATION 0.85 1766 中國中車 / CRRC 0.70
83 信和置業 / SINO LAND 0.80 1776 廣發証券 / GF SEC 0.70
101 恒隆地產 / HANG LUNG PPT 0.80 1800 中國交通建設 / CHINA COMM CONS 0.70
151 中國旺旺 / WANT WANT CH 0.80 1816 中廣核電力 / CGN POWER 0.70
175 吉利汽車 / GEELY AUTO 0.70 1928 金沙中國有限公司 / SANDS CHINA LTD 0.80
267 中信股份 / CITIC 0.80 1988 民生銀行 / MINSHENG BANK 0.40
270 粵海投資 / GUANGDONG INV 0.80 1997 九龍倉置業 / WHARF REIC 0.80
288 萬洲國際 / WH GROUP 0.70 2007 碧桂園 / COUNTRY GARDEN 0.30
384 中國燃氣 / CHINA GAS HOLD 0.70 2018 瑞聲科技 / AAC TECH 0.50
386 中國石油化工股份 / SINOPEC CORP 0.80 2202 萬科企業 / CHINA VANKE 0.50
388 香港交易所 / HKEX 0.80 2238 廣汽集團 / GAC GROUP 0.60
390 中國中鐵 / CHINA RAILWAY 0.70 2313 申洲國際 / SHENZHOU INT 0.60
489 東風集團股份 / DONGFENG GROUP 0.60 2318 中國平安 / SHENZHOU INTL 0.80
688 中國海外發展 / CHINA OVERSEAS 0.80 2319 蒙牛乳業 / MENGNIU DAIRY 0.80
669 創科實業 / TECHTRONIC IND 0.80 2328 中國財險 / PICC P&C 0.65
700 騰訊控股 / TENCENT 0.80 2333 長城汽車 / GREATWALL MOTOR 0.70
728 中國電信 / CHINA TELECOM 0.80 2382 舜宇光學科技 / SUNNY OPTICAL 0.60
753 中國國航 / AIR CHINA 0.60 2388 中銀香港 / BOC HONG KONG 0.80
762 中國聯通 / CHINA UNICOM 0.80 2601 中國太保 / CPIC 0.70
788 中國鐵塔 / CHINA TOWER 0.70 2628 中國人壽 / CHINA LIFE 0.80
823 領展房產基金 / LINK REIT 0.80 2799 中國華融 / CHINA HUARONG 0.20
857 中國石油股份 / PETROCHINA 0.80 2800 盈富基金 / TRACKER FUND 0.80
883 中國海洋石油 / CNOOC 0.80 2822 南方A50/ CSOP A50 ETF 0.80
902 華能國際電力股份 / HUANENG POWER 0.65 2823 安碩A50/ ISHARES A50 0.80
914 海螺水泥 / CONCH CEMENT 0.60 2828 恒生中國企業 / HSCEI ETF 0.80
939 建設銀行 / CCB 0.80 3188 華夏滬深三百 / CAM CSI300 0.80
941 中國移動 / CHINA MOBILE 0.85 3328 交通銀行 / BANKCOMM 0.80
998 中信銀行 / CITIC BANK 0.70 3968 招商銀行 / CM BANK 0.70
1038 長江基建集團 / CKI HOLDINGS 0.80 3988 中國銀行 / BANK OF CHINA 0.80
1044 恒安國際 / HENGAN INT'L 0.80 6030 中信証券 / CITIC SEC 0.70
1088 中國神華 / CHINA SHENHUA 0.80 6060 眾安在綫 / ZA ONLINE 0.60
1093 石藥集團 / CSPC PHARMA 0.60 6837 海通證券 / HAITONG SEC 0.70
1099 國藥控股 / SINOPHARM 0.65 6886 HTSC 0.70

Examples

 

Interest is calculated on outstanding of clients' account and on daily basis. Example of Interest Calculation:

 

 

Case 1:
Outstanding < Grade 1 Stock Margin Value
Stock Market Value Margin Ratio Margin Value Total Outstanding
Grade 1 Stock HK$ 125,000 0.8 HK$ 100,000 HK$ 80,000

 

case 1


 

 

Case 2:
Outstanding>Grade 1 Stock Margin Value
Stock Market Value Margin Ratio Margin Value Total Outstanding
Grade 1 Stock HK$ 162,500 0.8 HK$ 130,000 HK$ 150,000
Other Stocks HK$ 120,000 0.5 HK$ 60,000

 

case 2

 

Case 3:
Outstanding>Total Margin Value;  Margin Call
Stock Stock Value Margin Ratio Margin Value  Outstanding
Grade 1 Stock HK$ 375,000 0.8 HK$ 300,000 HK$ 500,000
Other Stocks HK$ 375,000 0.4 HK$ 150,000
    Total: HK$ 450,000 HK$ 500,000
case 3

FAQ

1. How to apply Grade-based margin interest plan instead of standard rate margin financing?

Existing client could contact their account executive or Customer Service Department for application form, but please note that the plan is for e-statement user only.

2. How does a client know that the application of Grade-based margin interest plan is approved?

Client will receive confirmation e-mail if their application of Grade-based margin interest plan is approved. Please contact Customer Service Department if there is no confirmation.

3. How to check Grade 1 stock list?

Please check Grade 1 Stock list in POEMS website and it would be updated from time to time.

4. How to presume accrual interest before choosing any margin financing plan?

Please check accrual interest with your portfolio details by utilizing the calculator provided.

5. If the stock held by the client is suspended, how would the stock value be calculated?

If the stock is suspended, the stock will have no market value. There would be a margin call for deposit.

6. If outstanding excess loan limit, is there any margin call?

No, margin call would occur only if outstanding excess margin value.

7.What kind of client is suitable for Grade-based margin interest plan ?

The plan is suitable for client holding blue-chips portfolio and one's Phillip account with no margin call.

8. Do both parties of joint account need to sign on opt-in form for joining Grade-based margin interest plan?

Yes, both parties of joint account need to sign on opt-in form for joining Grade-based margin interest plan.

9. Could authorized person represent their own client to sign opt-in form to go for Grade-based margin interest plan?

No, the opt-in form must be signed by client.

10. Would Grade-based margin interest plan affect the purchase power of client?

No.

11. How to check the blend interest rate of one's account on the day?

Interest rate would be shown in the end of the month in monthly e-statement.

"

Click in for calculator

The above grade-based interest rate will be based on the effective rate which is subject to the latest Hong Kong Dollar Prime (P) rate of Standard Chartered Bank.

*All of the stock margin ratio is only for reference, which is subjected to change as determined by both the market and specific company factor. We deserve the right to provide a different ratio to client based on his account situation.

Clients must submit supporting documentation to the Company to confirm that the depository payment is from his/her own bank account. Acceptable documentation include, but is not limited to, bank statements, cheque images, and online banking screenshots. The deposit will be credited to the Client account on the day that supporting documentation is provided. Until the supporting documentation is submitted, the deposit will not be treated as “credited”. The daily cut-off time for collecting the supporting documentation is 4:00 p.m., any supporting documentation received after 4:00 p.m. will be deemed to be received on next working day. Clients will be liable for any relevant interest, commission, fines and other charges incurred as a result of not being ”credited”.

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