Monthly Investment Plan for Stocks

Investment involves risks. Prices of investment products may go up or down and may even become valueless. Investors should read in detail the offering documents and the Risk Disclosure Statement of the relevant investment products before making any investment decision.
A Wide Selection of Stocks

Hang Seng Index constituent stocks1
Selected HKD Denominated Index-tracking Exchange Traded Funds (ETF)2
China Railway Group Limited (Stock code: 00390)
China Telecom Corporation Limited (Stock code: 00728)
The Link Real Estate Investment Trust (Stock code: 00823)
Manulife Financial Corporation (Stock code: 00945)
China Communications Construction Company Limited (Stock code: 01800)
China COSCO Holdings Company Limited (Stock code: 01919)
Standard Chartered PLC (Stock code: 02888)
Zijin Mining Group Co., Ltd. (Stock code: 02899)
China Merchants Bank Co., Ltd. (Stock code: 03968)
China Molybdenum Co., Ltd. (Stock code: 03993)
Low Investment Amount

Monthly investment amount as low as HKD1,000 each month
Low Handling Charges

The handling charge, costs as low as HKD50 per month per security, includes brokerage fee, stamp duty, HKEx trading fee, SFC transaction levy, safe custody fee, securities deposit charge for purchase order and nominee services fees. There is no charge for plan readjustment, or termination
Fee Table
Direct Debit for Maximum Convenience

Your monthly investment amount will be paid by direct debit for convenience3
Manage Your Investment Plan With Ease

You may capture investment opportunities by selling all or part of your securities at any time through Hang Seng Personal e-Banking, Manned Securities Trading Hotline (2532 3838) or at designated branches4
Dollar Cost Averaging

By using Dollar Cost Averaging investment method, you can buy more shares/units when the price goes down and fewer shares/units when the price goes up with a fixed monthly investment amount. Such investment method enables you to capitalise on the potential returns (if any) of the stock market in medium to long term without having to worry about short-term price fluctuations
Notes:
1.
Swire Pacific Limited 'B' is not included
Please visit www.hsi.com.hk for details of Hang Seng Index constituent stocks.
2.
An Exchange Traded Fund is a hybrid of a stock and an investment fund.
3.
Customers should set up a direct debit authorisation together with plan subscription for subsequent monthly investment payment at designated branches or via Hang Seng Personal e-Banking.
4.
After a securities transaction has been executed, the Bank will make available the essential features of the securities transaction as soon as reasonably possible through such means or medium including but not limited to Personal e-Banking, Automated Securities Trading Hotline, Instant Order Confirmation Service or personal call provided by the Bank from time to time and at the Bank's discretion. Customers shall check the essential features of the securities transactions by themselves through such means or medium provided by the Bank.

Sale orders of securities are subject to the brokerage fee and the transaction charges charged by third parties such as Transaction Levy, Stamp Duty and Trading fee, etc.
How the Plan Works

Example (For illustration only)
Assuming the customer's regular investment amount is HKD2,000. The investment amount after deduction of the handling fee (0.25% of the monthly investment amount or HKD50 per security, whichever is higher) will be used for purchasing securities. The number of shares/units allocated to each customer will be rounded down to the nearest whole number of shares/units. Any remaining dollar amount will be credited to the customer's payment account within five trading days following the Securities Purchase Date.
Regular
Investment
Amount(HKD)
Amount Available
for security Purchase5
(HKD)
(a)
Purchase
Price
(HKD)
(b)
Number of
Shares/Units
Purchased
(c)
Actual
Investment
Amount
(HKD)
(b) x (c)
Amount to be
Refunded
(HKD)
(a) - (b x c)
1st $2,000 $1,950 $12.05 161 $1,940.05 $9.95
2nd $2,000 $1,950 $13.20 147 $1,940.40 $9.60
3rd $2,000 $1,950 $13.00 150 $1,950.00 $0.00
4th $2,000 $1,950 $13.50 144 $1,944.00 $6.00
Total $8,000 $7,800 - 602 $7,774.45 $25.55
Notes:
5.
Amount available for security purchase = Customer's regular investment amount - Handling fee (0.25% of monthly investment amount or HKD50 per security, whichever is higher)
Plan Details

Minimum Monthly
Investment Amount
HKD1,000 for each security
Securities available for selection
- Hang Seng Index constituent stocks1
- Selected HKD Denominated Index-tracking Exchange Traded Funds (ETF)2
- China Railway Group Limited (Stock code: 00390)
- China Telecom Corporation Limited (Stock code: 00728)
- The Link Real Estate Investment Trust (Stock code: 00823)
- Manulife Financial Corporation (Stock code: 00945)
- China Communications Construction Company Limited (Stock code: 01800)
- China COSCO Holdings Company Limited (Stock code: 01919)
- Standard Chartered PLC (Stock code: 02888)
- Zijin Mining Group Co., Ltd. (Stock code: 02899)
- China Merchants Bank Co., Ltd. (Stock code: 03968)
- China Molybdenum Co., Ltd. (Stock code: 03993)
Payment Account Hong Kong Dollar account at Hang Seng Bank or HSBC
Payment Date6 The 10th of each month
Purchase Date The third trading day after Payment Date7
Monthly Investment
Amount Readjustment
Effective in the following calendar month upon the receipt of customer's notice.
Monthly Investment
Portfolio Readjustment
Effective in the following calendar month upon the receipt of customer's notice.
Plan Termination8 Effective in the following calendar month upon the receipt of customer's notice.
Notes:
6.
Applicable to normal circumstances. If it is the first contribution, the Payment Date will be on the 10th of the month after the month in which the instruction is made by the customer. The Payment Date will be postponed to the next clearing day if the 10th of the month falls on a Saturday, Sunday or public holiday.
7.
Under normal market conditions, purchase of securities will commence at around 15 minutes after the market opens on the Purchase Date.
8.
The Plan will be terminated automatically if no payment is made for two consecutive months.
Fee Table

Handling Fee 0.25% of the monthly investment amount per security or HKD50 (whichever is higher), inclusive of brokerage fee, stamp duty, HKEx trading fee, SFC transaction levy, safe custody fee, securities deposit charge for purchase order and nominee services fee.
Monthly Investment Amount
or Investment Portfolio Readjustment
Nil
Plan Termination Nil
Notes:
-
The number of shares/units allocated to each customer will be rounded down to the nearest whole number of shares/units. Any remaining dollar amount will be credited to the customer's payment account within five trading days following the Securities Purchase Date.
-
If a customer retains securities in the Monthly Investment Plan account after he/she terminates all the Monthly Investment Plan for stocks, the Bank will impose normal securities services charges, including safe custody fees, nominee services fees and other relevant charges.
-
If a customer sells any securities in the Monthly Investment Plan account (regardless of whether the plan is terminated or not), the Bank will impose normal securities services charges, including the brokerage fee at normal rate and other relevant securities services charges on the selling transactions.
You can now set up a Monthly Investment Plan through Hang Seng Personal e-Banking9.
For more information, please call 2998 9898 during office hours.
Notes:
9.
Only applicable to Hang Seng Integrated Account customers and not applicable to joint accounts. Joint name Integrated Account customers can set up a Monthly Investment Plan through e-Banking service after their Monthly Investment Plan securities account has been set up at our branches.
Other Important Risk Warnings:

Investors should note that an exchange traded fund ("ETF") is different from a typical unit trust and many factors will affect its performance. The market price per ETF unit could be significantly higher or lower than its net asset value per unit due to market demand and supply, liquidity, and scale of trading spread in the secondary market and will fluctuate during the trading day.

While the investment objective of an index-tracking ETF is to match, before expenses, as closely as practicable the performance of the underlying index, there can be no assurance that the performance of the index-tracking ETF will be identical to the performance of the underlying index.

Like other index-tracking funds, an ETF is not actively managed meaning that the fund manager does not have discretion to select stocks individually or to take defensive positions in declining markets. Hence, any fall in the underlying index will result in a corresponding fall in the value of the ETF. In addition, to the extent that the underlying index concentrates in the securities of a particular industry or group of industries, the performance of ETFs could be more volatile than the performance of less concentrated funds.


In respect of an ETF which invests in financial derivative instruments issued by counterparties, it is subject to the credit risk of such counterparties.

Before deciding whether or not to invest in an ETF, investors should consider if investment in the ETF is suitable for them in terms of their financial situation, investment experience and investment objectives. In addition, investors should avoid excessive investment in any single type of investment (in terms of its proportion in investors' overall investment portfolio) including any proposed investment in the relevant ETF so as to avoid their investment portfolio being over-exposed to any particular investment risk.

Investors should note that investment involves risks (including the possibility of loss of the capital invested), prices of ETF units may go up as well as down and past performance information presented is not indicative of future performance. Investors should read the offering documents of the relevant ETF (including the full text of the risk factors stated therein) in detail before making any investment decision.



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